Integrated Logistics: What Are the Advantages for Companies

Integrated logistics can be advantageous to any company that wants more control over its shipping process and spends too much money on shipping as it stands. By choosing integrated logistics and streamlining your shipping process, you’ll have more money to spend on growing your business and taking care of your employees, so read on to learn more about the benefits of integrated logistics.

What is integrated logistics?

In the old logistics model, you have different players at different stages of the supply chain, which translates to many problems, including delivery delays and high costs. Today, integrated logistics solutions providers handle everything from warehousing to transportation and customer service, making them one-stop shops that save companies time and money. This arrangement offers several advantages among them:

1. Reduced Costs

Integrating your logistics can help you to reduce costs across several different areas. Optimizing your transportation and distribution operations will allow you to use more efficient modes and cost-effective shipping services, reduce warehousing operations, and cut unnecessary expenses. 

This could result in significant savings on monthly overheads, which will help you boost your profit margins. Integrated logistics are especially important to businesses that work on thin margins, including eCommerce retailers. 

You’ll also be able to save money with an integrated logistics provider because you’ll have less inventory sitting around unsold. By moving products through your supply chain faster, you’ll be able to reduce costs related to storage and disposal. And since you won’t need as much inventory, you won’t need as much space for storage—saving you money on real estate costs.

2) Faster Turnaround Time

Integrating all your business logistics into one system means shipping services, warehousing, and inventory information are captured in one place. As a result, you can eliminate time-consuming data entry and streamline order processing. You’ll also be able to avoid costly errors from manually cross-referencing orders and transactions between multiple systems. 

Ultimately, all these efficiencies mean increased productivity—and a faster turnaround time for your customers. As any supply chain professional will tell you, cutting down on logistical delay is essential to maintaining customer satisfaction and reducing overall costs.

Most businesses will attest to the fact that there have been plenty of instances in the past where their logistics have either gotten delayed or being canceled altogether. This is why experts recommend that you should always opt for liner shipping services because of its regularity, punctuality and zero-cancelation issues. 

3. Reduced Business Risks

The old logistics model is fraught with risks because of the numerous players involved. Outsourcing to one provider reduces risk exposure and promotes accountability. There is accountability when one party is directly responsible for everything in logistics. An integrated logistics provider works with your existing IT and business processes. Your data is safe, secure, and readily available from anywhere in real-time. 

You’ll also reduce operational risk by quickly resolving internal bottlenecks, streamlining operations, and improving service levels. You won’t need to hire additional staff or spend on new technology, nor will you incur long-term costs related to third-party maintenance and support. Most importantly, you’ll have fewer threats to your company, customers, or brand.

4) Improved Customer Experience

Customer service is key to remaining competitive in today’s global business environment. Quick delivery times can mean increased revenue and word-of-mouth advertising for your company. For example, customers who receive same-day shipping are significantly more likely to recommend that company than those who didn’t receive same-day shipping. 

By working with an integrated logistics provider, you’ll be able to offer your customers quick turnaround times and fast delivery without sacrificing quality or customer satisfaction. Plus, there are several other advantages to quick delivery.

An integrated logistics provider is also key in fulfilling other processes that the in-house customer service departments handle. A good example is customer returns. An integrated logistics provider can process and handle these items quickly, efficiently, and at a lower cost than a company could do on its own. it makes your customers very content and improves them 

5. Increased Speed to Market

Businesses that thrive on exploiting current trends need to move to the market quickly and take advantage when the opportunities arise. For example, when a popular movie is released, sellers of the merchandise around that hype must move quickly and catch the market while the hype is on. 

An integrated logistics provider can help you move quickly. They have a network of partners, so they can get your products to market faster than you could on your own. They also have expertise in transportation, warehousing, and distribution that can help ensure your products arrive in good condition and on time.

Conclusion

If you’re looking for a logistics partner that can help reduce your costs, improve your customer experience, and give you a faster turnaround time, then you should consider working with an integrated logistics provider. An integrated logistics provider can provide you with a one-stop-shop for all of your shipping needs, which will reduce the business risks associated with working with multiple providers. Contact an integrated logistics provider to learn more about how efficient shipping services can help streamline your business processes and improve your bottom line.

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By Cary Grant

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