What is Integrated Logistics?: Simplified Definition

Integrated Logistics is a collaborative process between multiple factors and entities that is responsible for moving products from their origin to the destination. The process is an umbrella term for a variety of functions performed by different departments towards the singular goal of moving goods. 

Integrated Logistics: Technical Definition

ClickPost defines Integrated Logistics as a process businesses use to improve product delivery and customer experience through cohesive operation between multiple departments, stages, and/or entities that play a role in getting a product from the source to its final destination.

What is the function of Integrated Logistics?

The function of Integrated Logistics is to ensure that the movement of materials and products from the point of production to supply, during the marketing process and till the delivery is completed without hindrances. Through effective planning and controlling of the flow of goods, integrated logistics allows companies to manage multiple processes through a single management system. 

Why is Integrated Logistics important?

Integrated Logistics allows companies to deliver products to end consumers in a cost-effective and efficient manner. This helps improve the customer experience while also making business operations more agile. Moreover, it enhances a company’s ability to react to hindrances and resolve them. Further, integrated logistics allows companies to increase their productivity through the consolidation of information and simplification in execution. 

What are the different components of Integrated Logistics?

There are four main components of Integrated Logistics:

Supply : It is the component of integrated logistics that enables companies to manage their suppliers, purchases and prepare schedules for receiving raw materials. 

Production : It is the component of integrated logistics that enables companies to plan the production of goods, inventory, and warehousing operations. 

Marketing : It is the component of integrated logistics that enables companies to move goods to the right places with the requisite packaging to enhance marketing operations. 

Delivery :  It is the component of integrated logistics that enables companies to segregate, transport, distribute, and deliver goods. 

 

Why do companies opt for Integrated Logistics solutions?

Companies opt for Integrated Logistics solutions for two major reasons; cost, and efficiency. 

Since the entire movement of products is interconnected, integrated logistics solutions involve a smaller number of parties allowing companies to leverage competitive pricing. Since the bulk of operations is handled by a single or few parties, companies are able to negotiate better rates owing to multiple billable operations from the same provider. 

When companies opt for Integrated Logistics solutions they are able to manage multiple stages involved in the movement of goods from a single instance. The reduction in the number of parties reduces friction between different operations and improves the flow of operations during the logistics process. 

What is the difference between Supply Chain Management and Integrated Logistics?

The process of Supply Chain Management is responsible for improving the management of the supply of raw materials, components, or finished goods that are to be used for production or sale in furtherance of the business operations. Supply chain management includes a larger set of activities that helps companies receive the necessary resources to conduct business. Whereas, integrated logistics helps companies enhance processes involved in the delivery of goods to the end consumer.

In other words, supply chain management refers to the set of processes involved in moving and optimizing resources for a business to conduct its operations smoothly. While integrated logistics is the process of moving goods from the enterprise to the end consumer in the most efficient manner. 

 

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