Logistics Chain of Events

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There are several links in the chain of getting a product to a customer, and if any one of these chain links is broken then the whole process suffers as a result.

Manufacturers are at the beginning of the chain because they create or build a product that has been determined to be in demand by the consumer market. This can be accomplished from anywhere that there is a plant built and employees involved in performing the necessary steps and operations. The store or outlet is the final destination for that product and is where the consumer will make the purchase and provide the profit margin that applies to each company that was involved.

However, in between the manufacturer and the store, there has to be a delivery function. This is where a logistics company becomes involved and their expertise of being able to transport large quantities of items from one point to another in a timely, safe and effective manner is used. Their employees are truck drivers, office workers and managers who work to ensure that everyone is following the rules, abiding by the regulations and protecting the employees' safety. This is a key component and requires dedication, organized planning, understanding routes and looking at all the variables in case of bad weather, breakdowns, accidents and other events that could set back the timetable of delivery. Logistics apply to every industry whether it is on a small scale traveling across the city of Dallas or trekking across the country from California to Texas to Florida.

Depending on the specialty, the trucks could have to make several stops along the way and drop off their designated loads at each point. This demands precision driving, reliable delivery and the ability to make judgment calls when something unexpected occurs. This also involves understanding how to maintain and effectively utilize your warehouse space so that you can move more product in as you move it out and it becomes a circulating process.

Retail stores can have their own distribution centers, but the same rules and methods apply because even though it is focused, there are still several destinations that are included on the route and with perishable, consumable or hazardous items the risk increases that something could affect the shipment. When this happens, the company loses money and that can only happen a few times before they start to suffer cash flow issues. If the logistics company is third party and contracted out, then they could find themselves with one less client which then becomes a profitability problem for them.

Managers and supervisors in this industry have to be able to see all the different scenarios and present that they are able to meet any challenge that comes their way even if it requires them to think outside the box. Individuals with this training are highly sought after and can quickly adjust moving from one industry to another (such as military to civilian) because the same basic principles apply no matter where you go. As a manufacturer, it is important to utilize a reliable logistics service provider, provide quality checks, set standards that have to be met and then measure those so that you can course correct or adjust as needed to make sure that your product gets where it needs to go as promised.
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