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The Logistical Platform: The Great Unknown

Nordlogway
18 June 2019

We all know that in a world like ours, where immediacy rules above all other criteria, logistics is key. So, to make it clear to all of us, let us go back to the start to define what logistics is.

According to Ferrell, Hirt, Adriaenséns, Flores and Ramos, authors of the book Introducción a los Negocios en un Mundo Cambiante(Introduction to Business in a Changing World), logistics is:

“An important operative function that comprises all the activities necessary for the acquisition and administration of raw materials and components as well as the handling of finished products, their packaging and their distribution to clients.”

Whereas in Essentials of Marketing, Lamb, Hair and McDaniel define logistics as: 

“The process of strategically managing the efficient flow and storage of raw materials, in-process inventory, and finished goods from point of origin to point of consumption.” 

 After reading these definitions, I should make it clear that logistical needs arise from manufacturers or distributors.

In order for any company or organisation to define its optimal logistics chain, it needs a space to organise its operations. This space is called a logistical platform and is normally managed by a logistics provider or by the logistics department, which uses the warehouse to process the load and to plan or design its distribution, with the aim of delivering the product to the end consumer rapidly and efficiently.

The logistics platform or warehouse mainly comprises the storage area, the order preparation area and the dispatch area. 

A multitude of services can be performed in a logistics platform, including:

  • Cross-docking
  • Storage
  • Picking
  • Packing
  • Reverse logistics
  • Dedicated e-commerce logistics
  • Vehicle loading and unloading
  • Goods consolidation or deconsolidation point.

Each project must be studied in order to optimise the space and resources used for each operation as much as possible and to provide optimal service for each client according to their needs.

Knowing the dimensions and weights of the goods, the rotation, the type of destinations and the frequency will help to make decisions and to determine the layout of the warehouse and what type of transport (last mile, groupage, full load, special transportation, etc.) is suitable for each type of merchandise.

Planning is the basic foundation for an efficient and productive logistics chain. Even more so in today’s saturated market full of competitors and in which some potential clients value best price over best logistics.

In conclusion, the companies that work in this sector, like Nordlogway, must provide our clients with disruptive solutions to optimise their logistics while also becoming more efficient and productive and adapting quickly to the new requirements of the market.