Logistics companies help other companies to run their business smoothly without worrying about the transportation issues. They help streamline the task of delivering shipments of their customer companies. They specialize in the field of transportation and can perform all activities from pick-up of the shipments to assisting on tracking the geographical location of the shipments and to safely deliver the goods at the right time and in a safe and hygienic condition thereby attaining customer service and appreciation. By doing this, they retain their existing customers and prospective customers come their way.
Logistics is regarded as the complete set of functions that are concerned with planning, controlling and managing a smooth flow of products and services, people, real-time data and information that are considered to be of utmost importance. This also includes the steps that are involved in delivering the products and services without shrinking the budget of the company.
It is commonly believed that no manufacturing, distribution or marketing activity can be completed without the support of an effective logistics system. The logistics system needs to be drafted in such a manner that it is able to achieve the business goals of the company besides being a supporting hand in the successful implementation of the plans and policies of the company.
Logistics companies may face numerous problems or challenges while performing their duties, namely:
* Globalization of Supply Chain – Due to the advances in the field of logistics, supply chains are now considered to be global as their area of distribution has spread far. Logistics companies have their network levels, both domestically and internationally. In the present competitive environment, there is an urgent need for them to manage their complex operations around supply chains that have characteristics of effective distribution, multi-point sourcing and global delivery.
* Growth of existing networks and service footprint – These days customers are not merely satisfied with delivery of goods. A logistics company must be able to provide multi-modal services, additional and unique features, timely delivery and complete assistance across the life-cycle of the shipments. There must be steps taken by the logistics company for the development of new routes in addition to the expansion of services offered and networks.
* Transparency in supply chain – Logistics companies must be ready to offer visibility of supply chain to its customers which can enable the customers to effectively plan and manage any variations in the levels of demand and supply beside inventory.
Thus, it can be said that logistics companies can help ensure cost savings and enhanced efficiencies in addition to lowering the level of inventory. They also help other companies by delivering infrequently matched enterprise access to important business information using web-based architecture. They are also helpful in improving the delivery time and thereby resulting in enhancing levels of customer satisfaction.