Every organization manages business logistics, because every business, regardless of industry, age, scale or specialization, must at some point get its goods and services from point A to point B. That coordination of movements makes up the backbone of contemporary business logistics — and it’s more essential to master than ever. What are the functions of logistics management and their importance? What is the importance of logistics management? We’ll answer those questions and more in this article.
What Is Business Logistics?
The business logistics definition is the complete distribution control of inventory, from its procurement to its point of consumption.
In other words, it’s the workflows and oversight of an item as it moves from initial production and procurement to its final usage application and consumption, typically in the hands of a consumer.
Business logistics involves multiple domains or processes. Business logistics implementation, therefore, focuses on making these multi-step, end-to-end inventory flows more efficient, cost-effective and convenient for its parent organization, check out the best semi truck auctions. As well a business logistic involves the payroll administration services of you business.
Organizations can choose to either handle the essentials of business logistics entirely in-house, or outsource process domains to a third-party business logistics partner (3PL). Depending on the nature of your inventory, the scale of your business and the fluidity of your cash flows, a 3PL provider may be more beneficial than keeping all business logistics in-house. Continue reading for more on this 3PL option. Studies have shown that he success of your logistics management can directly affect your business finances and its overall success. If you need a tool to better understand the financial standing of your business, Fourlane has financial software solutions that may be of help.
The Role of Business Logistics
How do logistics companies work? True business logistics makes organizations leaner and more profitable. It grants broader visibility over the movement of merchandise from construction to consumption, identifying infrastructure and operational practices that help or hinder that smooth, cost-effective distribution.
It’s impossible to overstate the benefits of business logistics systems or the importance of distribution logistics. While businesses get a fresh set of strategies informing improved internal operations, they also learn which aspects of their duties they currently handle well, and which require new or updated systems.
We can break down the importance of logistics in supply chain management into a set of inbound and outbound domains, including the following.
- Material sourcing: The procurement and distribution of raw materials or smaller, individual components that eventually get fabricated into a finished product, thus triggering product flows into the rest of the business logistics cycle.
- Transportation: The actual distribution and movements of goods between locations, arranging both inbound and outbound transportation as well as shipping methods, timeframes and any assistance from transportation 3PLs.
- Order fulfillment: The management and delivery of customer orders from their points of purchase up to final delivery at the expressed point of consumption. Order fulfillment often introduces unique software tools into business logistics, including order management software and international order fulfillment supply chains. You can watch Cortney Fletcher’s eCom babes videos on YouTube to improve your order fulfillment process.
- Warehousing: The storage of goods across the entire supply chain spectrum. Warehousing most often includes the physical infrastructure and operations involved in ready-to-order inventory storage and merchandise returns, streamlined in a comprehensive warehouse management system.
- Demand forecasting: The practice of preemptively managing the cycles of consumer supply and demand, timing inventory flows to better match seasonal shifts in consumer interest and order fulfillment rates. Accepting credit cards and moving to online payments streamlines the way your business handles transactions. We also recommend finding the cheapest credit card processing service for better profits.
- Inventory management: The day-to-day oversight of physical goods and products handled across warehouses. Inventory management shares many responsibilities and domains with order fulfillment and material handling as well as demand forecasting, using inventory management systems and accounting and auditing services to perform high-level executive inventory operations.
- Supply chain management: A similar term that widens the lens to focus on broader business practices and additional lateral operations that streamline product flows and generate leaner bottom lines. Supply chain management strategies often complement and take on the overall essentials of business logistics, though the two aren’t synonymous.
Garry Rodgers says
January 3, 2016 at 12:38 pmHi Rachel – Garry Rodgers in Vancouver, Canada, here.
I’ve been your follower for a few years now which has really helped me grow my blog at DyingWords.net http://bit.ly/1kCJ28Y . This year, right out of the blue, the Huffington Post contacted me to write a feature forensics article for them and then took me on as a regular blogger – now with 17 posts on the Huff – http://www.huffingtonpost.com/garry-rodgers/ . To me, that was a successful 2015.
My message of encouragement for others is to aim high, write all your material as if it’s going to be read on a huge publication, and never quit believing that if you put out enough quality product, it’s going to be noticed, and a return will come at the most unexpected time. Karma, baby, karma 🙂
Best to you for 2016, Rachel, and keep on making a difference in our writing’ lives!
Susan Faw says
January 3, 2016 at 4:34 pmWell done Garry! I started following you this year too! all the best in 2016!
Susan Faw says
January 3, 2016 at 2:24 pmAs 2015 has been my first true “I am an author!” year, it has been chock full of social media initiatives. Other than a private facebook page, I had no other social media presence. This year, I have grown my facebook presence and my author facebook presence to over 500 followers, I have launched my twitter and have gathered a following of 10.4K followers as of this writing. I have my google + profile up and running, a tumbler account, a stumbled upon account, and a Wattpad presence. I launched my author website and began blogging in November 2014 and while i haven’t hit my goal of a blog post a week, i have come pretty close to one every week and a half. With the fantastic news of my Booktrope acceptance in July 2015, I am now on the verge of publication, and am roughly 25% through the writing of the sequel. I have also have 4 other WIP. Its been a crazy busy year and I am learning something new every day.
As far as failures go, all of this plus working full time, I have not paid enough attention to my personal health, side tracking regular exercise and healthy eating to “get stuff done”. There is a lot of room for growth there, and my dog is begging for a walk… so I think I am heading out the door now! Time for a break 🙂
Bob Mueller says
January 3, 2016 at 3:10 pmDivorce as a success is an interesting viewpoint. I’ve got one of those under my belt as well. That was a low time in my life, but I’d never thought to consider it a success. Food for thought…
Professional Successes: I finished my third novel, the second in The Sad Girl series. Then I got picked up by Gravity (yay!), and they rereleased The Sad Girl. I’ve started blogging a lot more and doing it a lot more regularly, due almost entirely to you and MondayBlogs. I think overall I’ve become much more deliberate about writing this year, almost like I’m taking it more seriously. That’s a professional success, but it almost doesn’t feel like it because it doesn’t have a huge, instant payoff. But it’s still a success. Oh, and I started back to school, and earned straight As in my first three courses. That’s a big deal at my age!
Personal successes: This kind of ties in to the professional stuff. Over the last year, when people ask me what I do, I’ve said more than once that I’m a writer. At the personal, face-to-face level, that’s actually pretty simple. It feeds into a nice discussion about books in general. But during my first GravityChat back in November, you asked me if I was a fulltime writer. And I hesitated before answering. Wait: was I REALLY a fulltime writer? Did I have the right to say that out loud to hundreds of people? I finally said yes, and that was a turning point for me. Not like a street racer taking a corner at eighty. More like a battleship trying to make a course change at flank speed – not something that happens quickly. But when it does, it’s an obvious thing.
Failures? Hmm. The biggest one would have to be health. I’m still trying to get my diabetes under control, which is more difficult because I can no longer take a primary med. I’m sure if I pondered this some more, I’d come up with plenty, but then it would be hard to stop, so I’ll stop there.
Lisa Douthit says
January 3, 2016 at 8:40 pmI think you are amazing Bob, and so is your writing. I flinch when I say I’m a author because it still feels surreal (and if feel like only Steinbeck gets to say things like that) but if you can do it then so can I!
Sue Coletta says
January 3, 2016 at 3:30 pmHi Rachel,
2015 was my best writing year yet. I scored my publishing deal for Marred, psychological thriller/mystery, and even hit the bestseller’s list. Woot! Then on Christmas Eve I received an offer for my new thriller, Wings of Mayhem. As you know, a writer’s life has many ups and downs, but this year was mainly up for me. No complaints. Here’s hoping to a successful 2016. Cheers!
BTW, I love Author Rise. Thank you for the recommendation!
Lisa Douthit says
January 3, 2016 at 8:53 pmAt the beginning of 2015 I purchased a laptop and enrolled in Marie Forleo’s B-School to learn how to start a website and how social media works (yep. That sounded old). By Spring, Booktrope publishers accepted my book, Wellness Warrior- Fighting For Life In Fabulous Shoes and my website, lisadouthit.com and all my social media was on-line. We launched the book on September 30th, my birthday, and by November, it was a #1 bestseller on Amazon. My favorite part was a couple of months ago when I also launched a private FaceBook group for folks with chronic illness called the Wellness Warrior Tribe which to date, has almost 100 amazing, inspiring, true warriors. Dreams are absolutely possible. All you have to do is work your ass off to achieve them. But it is worth it!
Bob Mueller says
January 3, 2016 at 11:21 pmWait: you say I’m amazing, and yet you just started WW this year? And you were nominated for an award? Holy smokes, but that’s awesome!
Rock on in ’16!
Alys West says
January 4, 2016 at 1:56 pmLisa, that’s absolutely incredible! Well done! I have a chronic condition which doctors can’t do anything about so I’ll be checking out your website and your book. All the very best for another amazing year for you in 2016!
2015 was the year in which, after years of what’s felt at times like wading through treacle, things finally started to move forwards. Beltane, my first novel was published in December. For a while I felt that not securing a publisher was a failure but I’m actually really liking the freedom and creativity of being an indie author so maybe it worked out for the best after all. I started an MA in creative writing in September which I’m absolutely loving and then started teaching a creative writing workshop which is the best job I’ve ever had! I’m absolutely certain that teaching writing is something that I want to do a lot more of in the future.
My biggest disappointment (it’s not really failure as it’s entirely outside my control) is that my medical negligence claim remains ongoing over three and a half years after the event. Hopefully (many fingers and toes crossed) it will finally be settled this year. That will close a chapter and help me to put that really traumatic time behind me.
Catherine Taylor says
January 4, 2016 at 2:55 amMy greatest success of 2015 was publishing my epic erotic thriller Sins of the Master. At 259,000 words and a plot involving cyber hacking, espionage, politics, murder, a who dun it, Russian mafia and an array of characters. It took me a total of 19 months with extensive research to create this story. It was the finale to a series and I couldn’t be happier with the end result. The editing was a nightmare. My failure this year was ignoring health issues to complete this book and it’s taking it’s toll now, but I’m having some time out now to get back on track. Anyway, thank you, Rachel for a place to celebrate and for turning a blind eye to a little self promotion. If you would like to look at my book, you can find it here: http://www.amazon.co.uk/dp/B013YPY90E Happy New Year!
C. De Melo says
January 4, 2016 at 7:00 amThis is actually rather unbelievable, but it’s true…
Failure: My NYC agent and I broke up a few months before I moved to Italy.
SUCCESS: I got “discovered” by a VIP in the Italian literary world, signed with a publishing house, and my book SABINA is being translated as I write this. I’ve also received a ton of positive press and literary praise for the SAME BOOK my agent in NYC eventually decided to quit representing.
Kathleen Smith says
January 4, 2016 at 11:18 amHi Rachel!
As always for me your blog posts are interesting to read. I figured why not comment on this one. So here ya go!
My successes professionally would have to be the 80 book sales I received in one shot from a lady looking to buy books on miscarriages to hand out in baskets in some Hospitals, to ladies who have had miscarriages. I have no idea how this found me and my books, but she did and I am truly thankful. I also published a new book in 2015 about what it was like for me growing up in Brooklyn/Living Upstate and loosing my mom.
I was also hired for the first time to put a book on the kindle and such and promote it. This was extremely time consuming, but I got it done and it was nice to receive a paycheck.
My successes Personally well that is going to sound very strange, but that would be me slowly gaining self esteem and being able to look in the mirror and tell myself I’m beautiful and mean it. My other personal successes would be driving my son back and forth the basket ball practice 2 – 3 times a week an hour each way. I know that doesn’t sound like a lot but for me it was. My husband had way more confidence in my then I did. I also know that without my husbands support I would never be able to do what I do.
My Professional Failures would be to not get my books promoted the way I wanted to or as much as I wanted to. Without me promoting the word doesn’t get out which means no sales. I also haven’t had the chance to do a little changing to my blog.
My Personal Failures is not believing in myself enough. I have a lot of trouble with this. I don’t like to give myself any praise, but at the same time there are times when I feel proud of my accomplishments. Through it all I am thankful for my husband, our marriage, our kids and all the love and support we give each other (even on the days it doesn’t feel like it).
My two books are — Miscarriages My Story & Brooklyn Raised / Livin’ Upstate my blog — KathleenSmith.org
Laura McGowan says
January 4, 2016 at 2:42 pmThanks for the opportunity!!
I turned on ads for my blog and made 2.87!!!!! That’s almost two whole coffees! No, it isn’t much, but it’s better than nothing!
Here is my latest post where I’m trying to promote kindness and warmth (for a change)
http://skinnyandsingle.ca/2016/01/01/put-yourself-in-a-syrian-refugees-place/
Cecilia Dominic says
January 4, 2016 at 5:12 pmGreat question! I typically avoid the year-end wrap-up posts but have found a couple of good ones including yours. My greatest successes were the publication of three books in 2015, one of which (Eros Element) made it into the top 100 in steampunk on Amazon, and a good year for my day job business. On the flip side, 2015 was not great health-wise, and I had a couple of nasty surprises happen, one of which was the book I released in May not doing well, which led to a crisis of confidence. I’ve also come to the conclusion that I, too, need to back away from social media because of all the exposure to unnecessary negativity.
If you’d like to check out the book that did really well, here’s a link to my blog post with all the info and my ponderings on day job vs. writing (yes, it sometimes feels like a smackdown): http://ceciliadominic.blogspot.com/2015/08/eros-element-release-day.html
Karen Hugg says
January 5, 2016 at 11:12 pmIt sounds like you had a great year overall! Divorce is difficult, I’ve been through it, but by this time next year it will barely be an issue in your consciousness.
For the first time ever, I can look back at the year and be satisfied. I wrote and revised a novel I’m proud of, I revived my blog, I got my day job business churning. It was amazing. Usually the turning of the year means little to me as I don’t feel much has changed in my life. But this year most everything got better! And it’s inspired me to work to get my novel published in 2016. I’ve been saying this is the year of “Why Not You?,” a quote from Seahawks quarterback Russell Wilson’s dad. I wrote about it on my blog http://www.karenhugg.com.
The biggest failure was not getting my feedback from beta readers earlier. My aim had been to finish editing based on their feedback by the end of the year. But that’s okay. It was a self-imposed deadline. My other failure was not figuring out a way to visit long-distance friends who’ve wanted us to for years. But I take a deep breath and let these things go. There’s always next year to work on them.
Thank you for your great blog! Have a great 2016!
Lia Fairchild says
January 7, 2016 at 12:46 amI feel like my successes and failures could actually be the same examples. I released two kick-ass books in 2015. Compulsive and Liar. The reviews for these two books have been amazing, overwhelming, and evidence of my growth as a writer since I first published five years ago. But, the release of these two books also feels like my failure as well. I killed myself before the release of the first one. Spent the most money, time, energy, hopes and dreams, I’ve ever spent for a release and it completely tanked. Compulsive got lost in the sea of other new releases. Readers weren’t drawn to purchase it by the cover or blurb, both of which I’ve changed. Book 2 followed six months later to only a slightly better release day. Both books continue to sit idle on Amazon along with all my other titles. I still love these books and I still hold out hope for them. http://www.amazon.com/Liar-2-Book-Series/dp/B01A0V928Y/ref=sr_1_11?ie=UTF8&qid=1452129640&sr=8-11&keywords=lia+fairchild
Cynthia Herron says
January 9, 2016 at 11:18 amHello Rachel,
I think this may be my first time commenting, but I enjoy your thoughts and I love what an advocate and encourager you are. Your heart for others resonates.
I’ve never experienced divorce, but my thoughts and prayers are with you as you advance in your journey. I applaud you for stepping back from social media–something I’ve done, as well. Although I still blog twice a week, I released myself a long time ago from “keeping up with the Joneses.”
Personal success: Started my monthly newsletter last March and the feedback’s been great. It’s wonderful knowing my message of encouragement is resonating. Anything “new” is a bit scary, but it’s been a great step forward.
Enjoyed all the comments! Thank you, everyone, for sharing!
~ Blessings
Carol Hedges says
January 11, 2016 at 2:51 amBiggest successes this year? Publication of 3rd Vic Fic book: Death & Dominion…and seeing it featured on three big review sites as ‘Best Read of 2015’. Launch of ‘Adventures of L-Plate Gran blog ..based on my days looking after my small granddaughter…and seeing it syndicated. Reading lovely comments and reviews.
Biggest failure….ah…. that is slowly turning into a success….. and you’ll find out more in a week or two. Rachel: Good luck with your future..I’m always amazed how you manage to accomplish so much in all areas of your life..and I have No Doubt you will male a success of whatever lies ahead of you. x
Lisa Shambrook says
January 11, 2016 at 11:29 amI’ve been following you for a year or so and utilising a lot of your savvy!
My success is releasing my third book and completing the trilogy http://www.lisashambrook.com I’ve also garnered more success in blogging, by blogging about subjects that mean something to me, often tying into my books because the themes in my writing means a lot to me. I spruced up my blog making categories so subjects and posts about Mental and Emotional Health etc can be easily found.
And I’m still learning…
My failure is procrastination…I need to work on that!
May more success and love find each of us x
Rachel Thompson says
January 11, 2016 at 11:46 amI’m reading all of your successes and ‘failures’ and applauding everyone for your achievements and honesty. Rock n roll, friends.
Thank you for sharing!
Deborah Collyar says
January 11, 2016 at 7:27 pmHi Rachel,
Thanks for all you do – I’ve really enjoyed finding your many channels of information this year. They’ve really helped me get back to some old lessons I’d forgotten.
2015 successes:
1. New to eBook authorship – co-authored DCIS (Ductal Carcinoma In Situ) Dilemmas to help put it in perspective and explain more about risk: http://www.amazon.com/gp/product/B016NH4JOQ?keywords=dcis%20dilemmas&qid=1452471206&ref_=sr_1_1&sr=8-1.
2. Also started my blog called “One Health of a Life” and became a Tweep (@deborahcollyar)!
3. In addition, I helped raise money for foster kids, cancer research, and advocacy organizations with jewelry creations. Picture book at http://collyarpics.smugmug.com/CollyarCreations.
4. Helped close my mom’s house years after her death, and re-connected with long-distance cousins (physically and emotionally).
5. Caught up on some financial matters that I sometimes put off, so it felt good to end the year and start anew.
All of these things helped me meet a goal to give back the knowledge I’ve gained in new ways.
2015 Fails/Challenges (nicer word, don’t ya think?!?)
Biggest one: not keeping in regular touch with the people who are important to me. Sharing has never been easy for me, although many think I’m pretty open. But only about some things! 😉
Next: Motivation and energy issues from time to time. Health problems didn’t help, but now that I know they’re not another cancer (!) but rather related to long-term side-effects, I can adapt and accept them into my routine.
Last: didn’t start my big idea to better connect patients/advocates with researchers and healthcare systems so our voices help create better results for people. Still thinking it through…
Thanks for letting us share here – it helped clarify some areas to address. Guess I’ll be working on these things in 2016 (among others)!