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The importance of logistics for the supply chain management

Logistics has become an increasingly strategic tool, with an impact on company results. In line with the supply chain, it carries out the management of all the internal and external operations of the company, ensuring the integration of processes.

While the supply chain is directly and indirectly responsible for the methods and systems related to the product, such as purchasing, storage, and inventories, logistics is the operational part that deals especially with procedures related to the transport and storage of goods, raw material and inputs.

Integrated, they are indispensable for the success of the business, allowing the supervision of the whole process generating cost reduction and ensuring the best results.

After all, it’s no use looking for the best suppliers for your business, if you are having to control purchase, inventory and production, while seeking to integrate these among employees, if the right product does not reach the consumer within the deadline.

Therefore, it can be said that logistics is a technical and specialized step within the supply chain management – and the adoption of its practices is indispensable for any company that wants to maintain a solid relationship with suppliers and wishes to efficiently meet customer demand.

Integrated management

Logistics and supply chain management are different, but closely linked.

Deep integration between logistics and supply chain is the best way to reduce cost and guarantee competitive advantage.

In order to ensure real integration capable of generating positive results, it is necessary to take up appropriate practices, methodologies and tools as highlighted below:

  • Information sharing for strategic decision-making, e.g. through effective communication channels.
  • Standardization of documents so that practices and policies are similar, avoiding misunderstandings.
  • Planning through an effective schedule of activities made by the leaders of each sector.

With integrated management, the company can use information from other sectors to be more efficient. Consider a marketing action in which the sale of a particular product, for example, may demand the largest purchase of specific supplies.

With good supply management, it is possible to purchase raw materials in advance, choosing the supplier of the highest reliability and with the best price conditions and payment terms.

Technology integration

Technology is a strong ally of logistics and supply chain management. And because of technology, a lot happens, including the integration of various sectors of a company.

Enterprise Resource Planning (ERP) is a tool that centralizes data from each industry into a single software, allowing the company to track in real time, important metrics and productivity indices for both logistics and the supply chain.

In addition, the system can generate reports, allowing managers to have reliable subsidies for rapid decision-making, either to correct bottlenecks in the processes, control the stock or trust the changes in the processes.

Advantages of logistics in supply chain management

Efficient supply chain logistics management provides greater integration between sectors, allowing greater fluidity in the production chain and avoiding greater problems and bottlenecks that make it impossible to work efficiently. It also represents a reduction in production costs, as it reduces losses and offers better storage.

The production process is optimized as a whole, improving the final product.

  • Suppliers offering quality raw material, with the best cost-benefit and reliable deadlines
  • Standardization of processes ensures P2P chain efficiency, reducing waste, increasing productivity and reducing costs.
  • Reduction in transportation costs and delivery times
  • Optimized communication integrates departments and ensures efficient production chain.
  • Process automation allows for reduction of human failures and provides faster performances, as the software automatically performs actions that would take much longer than if they had to be done manually.
  • Customer satisfaction is the focus of the entire production chain and guides the company’s Logistics actions

Supply Chain Management

Sequoia operates under the Integrated Management model, providing the most adequate solutions to each company.

Develops customized strategies that include demand planning and inventory replacement, designs the actuating mesh, streamlined and efficient, with specific consultancies for each project.

Inventory and order management is carried out through the WMS Warehouse Management System, with online reports and controls that allow monitoring the entire distribution trajectory in real time, including the use of mobile devices. More than specialized storage service, handling, picking, packing, shipment, door to door distribution, courier, road and stocking, the solutions planned by Sequoia provide more savings, efficiency and profitability for your business.

 

 

 

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