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In recent years, there have been a number of changes in the relationship between companies and their customers. These changes increase every day, mainly because of the search of the consumers for improvements in the quality of prices and for different attendances.
So to meet these new demands, ventures need to reduce costs, streamline their processes, and have better contact with their audience. All this is part of the integrated logistics chain.
This concept means a greater integration of all processes that involve logistics, from the origin of the products, to the final consumer. This happens when a company has an intelligent system organized, that is able to control the entire logistic flow and command the various activities of the business. At Zoe Talent Solutions you will find more courses related to business management, which is very much helpful to you.
That way, we prepared this post so that you know the 7 benefits that this practice provides for your company. Check it now!
- Streamlines integrated logistics chain processes
A logistics system that operates in an integrated way in various sectors allows the company to have agility in the various operational processes. This strategic communication facilitates all stages and improves decision making as more people become involved, as well as reducing downtime and optimizing service quality.
All this integration provides greater predictability of the stages, making possible the rapid adaptation of the sudden demands of work.
That is, all these factors help the processes to have a continuous flow routine, which avoids interruptions due to lack of data from other phases or simply due to lack of synchrony in the logistic chain.
- Increases competitiveness
Businesses that have an integrated logistics chain will have a major advantage over business competitiveness . After all, it is not new for any company that processes that involve the use of effective software, good transport, among others, end up getting ahead because they are valued by the final consumer.
Thus, these practices, in which agility, reliability and efficiency are present, produce a very valuable competitive differential to those enterprises that continue to work with traditional logistic models.
Nowadays, the customer values quality demands. He wants to get his goods delivered on time, on time, and still wants to pay a fair price. All this is achieved through integrated logistics. That is why we affirm that it is a great competitive differential.
- Improve business performance
The incorporation of all sectors of the chain of logistics processes makes its management much less complex. The manager ends up having greater control over the data and, in general, about everything that is fundamental to his work. This helps in decision making and in the identification of the accuracy of some intervention.
Moreover, the optimization in the communication between the involved ones propitiates the dynamics of the activities, since it allows the administrator to know exactly where it should intervene, in case some problem is verified.
- Optimizes Distribution Centers
This category, in addition to the best performance of the distribution centers, also involves the completion of the entire process for sending the products. Here, the merchandise arrives at the destination, both at distribution points and at customer sales points. It stands out that everything needs to conform to the molds required, with quality and competitive values.
In short, the integrated logistics chain has been widely used when enterprises need to improve the agility of processes involving distribution and large displacements.
In addition, this mechanism can be described in a very simple way: listing all phases of logistics within the company, from the beginning of production, through sales, to the consumer.
- Amplifies The Flow Of Materials
This is the sector that will deal with the entry and exit of raw materials and their management , so that possible waste is avoided, as well as reducing the maximum losses.
Another mission that belongs to who will act in this area of integrated logistics is to have the capacity and the necessary technique to know how to negotiate the best way to promote the demands of the company according to their respective need.
Moreover, it is necessary to ensure quality throughout the process, for example, in the entry and exit of products in the storage sectors and the arrival of them to the final consumer.
Another important issue for those who work in the logistics area is the good partnership with suppliers: how to streamline the entire production process.
Done as expected and effectively in companies, this function provides control over the quantity of goods that need to be maintained in the distribution centers. Whoever is responsible for this area must control the arrival time of the items so that there is no delay.
- Reduces Operational Costs
The manager’s perspective of managing the entire integrated logistics chain enables a more efficient support of operational processes, such as the distribution and circulation of products, avoiding any of them to fail.
This tactical vision, in a direct way, allows a coherent planning and reduces costs, since a more productive and efficient environment is created, in which errors and inconsistencies are mitigated – what positively influences the level of consumer satisfaction.
In addition, the improvement has reduced costs with wasted time, materials and employee rework.
- Increases profitability
By betting on the best logistics practices and reducing the costs, especially the operational ones, it is possible to increase the profitability of your business. With the aid of technological means and the help of management software, the work of the various areas involved with logistics is optimized, and each of the functions is carried out in a planned and articulated way to provide the best conditions for the cash of your company .
The means of production – from the manufacturing to the delivery at the customer’s house -, followed closely by the manager, allow the improvement in the service offered. That way, searches for your branded items, as well as conversion rates, increase. Soon, the losses of returning goods fall, and profits increase.