The function of the freight industry is not always easy to follow, especially from the outside looking in. Even veterans of the industry cannot tell you with absolute certainty how industry complications will be resolved. In a constantly evolving industry that has only seen increased volatility in recent years, finding success as a carrier or shipper is a tall task, and maintaining that success is even more challenging.

There are many factors that separate a good operation from a great one. Factors such as comprehensive visibility and strong channels of communication are universally accepted as pillars of a healthy supply chain, but these aspects are often not fully realized.

Of course, firms are aware that stronger communication gives way to increased efficiency- However, the avenue to enhance communication is where firms come up short.
Transcribing relevant information and context when composing your supply chain is what puts good companies over the hump, and keeps great companies at the top. The process of being hyper aware of market trends, gathering and interpreting new information, and calculated action is referred to as logistics management.

Successful management of your logistics grants allowance for greater visibility, increased efficiency of shipments, and beyond. Depending on the case, firms can have their logistics management team in-house or outsource the administration of their supply chain functions to a 3PL that specializes in logistics management.
Either way, a robust network of experts dedicated to every aspect of your logistics operation is imperative to the development, success, and sustainability of a given supply chain.
Certainly, having committed effort to improve the logistics of an operation is beneficial- but how can effective logistics management make a difference?

First and foremost, the purpose of logistics management is to acquire an abundance of knowledge, data, and industry context in order to make informed decisions that would be most beneficial to the sustained success of a company. Logistics management seeks to achieve this by controlling costs, identifying inefficiencies, and recognizing potential problems on the horizon.
One of the aforementioned benefits of an adequate logistic management operation is an increase in visibility. Those in the freight industry know that visibility is paramount throughout the shipping process- knowing where freight is in real-time, where it’s going, and when it has arrived is crucial to maintain the efficient flow of the supply chain.
Lackluster visibility is a catalyst for complications in the delivery process, complications that businesses would otherwise avoid had they implemented a valid team dedicated to their logistics. This extends to the experience other firms have when working with you, and the more efficient and timely your shipping process is, the better the odds that these companies will want to continue doing business with you.

Additionally, proper logistics management can cut costs. Understanding and securing fair rates on freight and proactively managing inventory levels are two ways that expenses can be lessened. The awareness of your operation that sufficient logistics management provides will accurately convey the shortcomings in areas of spending that can be cleaned up while simultaneously increasing efficiency and lowering costs.

Logistics management providing vast amounts of quality information is what enables every previous benefit. Without the comprehensively detailed information and data, benefits such as cutting costs and improving efficiency would be impossible. Gathering and interpreting relevant information is the objective in logistics management, as it allows you to make informed decisions with the intelligence regarding your supply chain.
It is not only having information concerning shipments, but also accounting and inventory. The data and subsequent interpretation is the measure of how successfully different aspects of your business are functioning.
Think of a productive logistics management operation like a skilled copilot. Holding all the information regarding your end destination, the different routes to take, and what to do once you reach your destination- it guides you to make the optimal decision given the circumstances you face.
Logistics management is a remarkably essential component in the pursuit of a fully realized supply chain. Successful businesses employ logistics management as a compass, leading them to the most informed and optimized decisions.

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