The Beauty of Logistics*
What really logistics is, is it just simple transportation, is it just warehousing, is it just freight forwarding, is it just custom clearance or is it just courier?
Movement of materials, men and machines, from point A to point B within the stimulated time period, in the right quality, quantity, without a single scratch. Yes that essentially is what actually logistics is.
BEAUTY – An automotive component is being imported from Korea and has to be delivered in another factory which is in India.
Pick up – picking up the material from the factory Korea.
Transportation – you pick up the material safely, and ensure it reaches the sea port.
At the Sea port there are processes like custom clearances which require documentation and lot of system generated reports from the authorities.
Shipping – Either by air, or by sea, the goods are shipped to the destination shores, which in many cases as of now is not direct. This requires being extra cautious about the shipping plan considering the shelf life of the goods.
Customs Clearance & Transportation at the destination – In almost every country, the ease and level of simplicity in terms of operational execution of customs clearance and transportation varies majorly. This includes the human skill, knowledge, education, and infrastructure. Which is why it is essential for the LSP to understand every area of its operations to ensure smooth flow of the transactions.
#INVENTORY MANAGEMENT/ @WAREHOUSING/ #HUBBING – Based on the situation, which could either be an urgent part delivery OR a line supply item, another stage called warehousing /inventory management might also be required where you store the material based on customers requirement frequency. Besides the warehousing the customer might just required a lot more than simple material storage, such as kitting, cleaning, small assembly, quality recheck, sequential delivery planning, packing, etc.
In the whole process of picking up the part from Korea and delivering it to the plant the automotive manufacturer’s plant, all of these process have to be done with in a stipulated period of time or else the consequence could be as bad as the manufacturer production line stopping. Now that explains the importance and the beauty of logistics