It is the process of preparing and implementing efficient shipping and accommodation of goods from the place of origin to consumption. Its purpose is to meet client requirements quickly and at a low cost. Many companies focus on it, catering services to manufacturers, distributors and other industries having a high demand for cargo transportation. Some people own the entire infrastructure, from aero planes to trucks, warehouses, and software, while others focus on one or two parts.
Significance of Organization in shipment
- On-time delivery of undamaged containers has always been relevant to the entire supply chain.
- It has become more crucial in recent years, as an omnichannel business has become more important for home or retail delivery of goods ordered via smart phones on the same day.
- Distributors and retailers have to enhance their logistics methods to meet the demand for faster and more convenient delivery of a broad range of products.
- They also need to integrate their processes and systems properly to improve the visibility of the supply chain.
Effective logistics management enables the company to control incoming goods. It allows them to maintain inventory at the optimal level, organize the return of goods and use the appropriate transportation method to transport goods, all of which can reduce delivery costs. They account for about forty per cent of the total cost of the supply chain. In other words, good logistics management enables shippers to take advantage of hidden savings opportunities. With good service, biaya ongkir (shipping cost) can be reduced.