Types Of Supply Chain And Logistics Solutions To Consider
Nowadays, supply chain and logistics functions both are highly essential for eCommerce companies. Both are quite different and related to each other. Logistics is a process of maintenance and integration of goods whereas Supply Chain Management is the management and coordination of supply chains of a company.
Let’s discuss 5 major types of supply chain and logistics solutions.
Warehousing stands for storing inventory for a period of time. Storage facilities may range from big warehouses with a number of equipment like containers, shelves, forklifts & docks, to small storage areas to hold the product. Lease terms mainly vary from short to long-term commitments. Warehousing services in Sydney mainly assist with B2B eCommerce or wholesale orders where bulk quantities of inventory should be shipped. The warehouse management services are generally used to handle these operations.
2. Inventory management:
Inventory management is the way of monitoring of stocked goods of a company. Activities mainly include the level of tracking inventory, demand forecasting and restocking inventory that helps to ensure you don’t run out of stock. Apart from that, inventory management always uses software that assists businesses to obtain information easily without having any calculation or manual tracking. Packing, picking & shipping orders can’t be included in the inventory management systems.
3. Order fulfilment solutions
The process of order fulfilment has several steps. They include
- Kitting inventory
- Managing inventory
- Shipping orders
- Picking products in an order
- Packing boxes & attaching shipping labels on packages
- Facilitating the returns process
However, order fulfilment solutions are not ideal for long-term storage.
4. Third-party logistics
Third-party logistics means the outsourcing of logistics. The 3PL or third-party logistics is interchangeably used with a warehouse and fulfilment centre. The services mainly include:
- Inventory management
- Shipping & receiving
- FTL & LTL shipping
- Picking & packing
- Kitting & customization
- Reverse logistics
A third-party logistics organisation mainly acts as an eCommerce company. They specialise in several types of warehousing and fulfilment.
5. In-house handling fulfilment
In-house order fulfilment means that all customers’ orders are picked, processed, packed & shipped under one roof. More specifically, the business is fully responsible for managing all phases of order fulfilment, including storing and receiving inventory. Three essential components of the in-house handling fulfilment process include:
- Well-trained staff
- Cutting-edge technology
- Adequate warehousing management software
Supply chain management and logistics functions play a vital role in businesses that sell products. Selecting the right logistics management systems to help save money, achieve customer requirements, & drive efficiencies.
15 Nov, 2021
15 Dec, 2021
04 Apr, 2022