Often, the process of implementing new technology or work methodology can be challenging. However, the advantages gained help to demonstrate how this change can bring positive results.
It favors decision making
Strategic planning and long-term vision are essential factors for the company to grow and conquer new business opportunities. In this scenario, this integration plays an active role in decision-making by managers.
In other words, this change allows access to management reports and performance indicators that help to form an accurate picture of the progress of activities. With this, it is possible to make decisions regarding financial, operational, and commercial aspects.
Improves material management
Inventory management is under the responsibility of logistics. It is fundamental to guarantee the supply of the demand, at the same time that it is possible to reduce operational costs. This area is responsible for receiving inputs, supplying the production line, and shipping finished products.
With integrated logistics, management is not limited to the operations of a warehouse: it starts in the purchasing sector (with the appropriate purchases) and continues until the moment the customer receives the order.
Enables increased productivity
In general, the adoption of new processes and technologies helps to identify bottlenecks that can affect productivity. In order for the integrated logistics process to be used comprehensively, it is necessary to review the workflow and adopt improvements.
Fixing faults and optimizing processes along the supply chain helps to identify the best way of working. This involves modifications to the environment. Thus, teams become more productive and efficient.
Ensures process agility
Improved communication — provided by information sharing — makes processes more agile and reduces the rate of errors. This is because the most relevant data is available for consultation and can be used to monitor the company’s progress.
In the same way, decisions are made based on ample and reliable information, promoting agility and, consequently, increasing the chances of creating a competitive differential.
It results in the transparency of the process
In most cases, companies treat their logistical information as confidential. However, sharing data is essential for successful goods movement.
In fact, this accessibility is an element that generates a sense of transparency, especially in the relationship with customers. Today, it is expected that systems that allow tracking of order processing and product delivery are made available for consultation.
Help in cost reduction
With all the benefits mentioned, it is safe to say that cost reduction is also one of the reasons that demonstrate the value of integrated logistics in organizations. It can be achieved by increasing productivity, reducing errors and the need for rework, and reducing waste, among other positive changes.
This optimization can also be seen in the operation using tools that favor the delivery process, such as routing. This is an essential type of system for anyone who wants to make travel more agile and, at the same time, save fuel.
The improvement of the products and services offered to the customer, allied to the speed and precision in the decision making, are fundamental points in the creation of a competitive advantage for allowing the company to stand out from its competitors.
For more help with integrated logistics, reach out to Sooner Express/ Sooner Logistics 3PL Warehouse and Distribution center in California. We will take care of your logistics needs and ensure your business experience fluidity in the Amazon/3rd party distribution in CA, sector.