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What is logistics ?

What is logistics ?

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Logistic definition: The logistics consists in controlling physical flows of products for the final customer by respecting a precise specifications: as soon as possible, with the best possible quality of service, while optimizing stocks and flows.

This flow management uses innovative tools, offering traceability or a stock image in real time.

Managing the physical / data flows, providing the resources needed to achieve objectives, controlling costs, are all criteria to take into account to optimize its logistics strategy.

The logistics may be either integrated (managed by the brand as an internal service) or outsourced (entrusted to a specialized 3PL provider).

 

ACTIVITIES OF LOGISTICS

There are different types of logistics depending on the market / sector of the brand, whether ready-to-wear or cosmetics / accessories:

  • Distribution logistics
  • Textile logistics or ready-to-wear logistics
  • Leather Goods Logistics
  • Cosmetic logistics
  • Luxury Logistics or Large Distribution Logistics

Logistics flows are differentiated according to notions of upstream and downstream

Upstream with the organization of supply, inventory control, warehousing and optimization of supplier flows to a central warehouse
Aval with the preparation of orders, shipping, after sales service, return management and optimization of these flows

The optimization of costs and deadlines is the basis of a controlled logistics. It concerns the optimization of the stock without breaking down and transport costs, for example, in order to improve the quality of service and to guarantee high customer satisfaction. It must make it possible to improve the productivity of the operators, also passing through a transversal communication.

Logistics brings together several services that make up the supply chain :

  • Upstream transport : organization of the flow from the supplier to the warehouse, customs operations
  • Reception : reception of the goods at the dock, sorting and sending to the racks
  • Warehousing : storing stock to a specific location using intelligent management tools
  • Preparation : picking in the warehouse stock and preparing B2B or B2C according to a process specific to each brand and type of product
  • Shipments : orders entrusted to the carrier in charge of ensuring the provision of the order to the end customer, whether it is a store or a physical customer
  • Downstream transport : provision of the product to the end customer using transport steering tools
  • SAV transport : assistance once the order is taken care of by the carrier in case of anomaly or delay of delivery
  • Reverse logistics

 

SUPPORT BUSINESSES OF LOGISTICS

Several businesses exist to manage the supply chain activity, in addition to operational activities such as logistics agent or logistics team leader. The transversal dimension is imperative since all the logistics trades must coordinate with the partner brand to ensure good coordination between supply and demand.

Support Services :

  • IT : Real-time traceability, information flow, information system, WMS, OMS and TMS
  • Process : flow optimization, cost optimization, inventory turnover, inventory optimization, optimize picking, stock status, inventories
  • Transport : management of the delivery organization, whether upstream or downstream
  • Transport service : real-time traceability, customer satisfaction, customer experience
  • Studies : constant innovation, automation, robotisation

 

WHAT MAKES THE DIFFERENCE BETWEEN LOGISTICS PROVIDERS ?

A good logistics provider differentiates according to his ability to offer the best possible quality of service with a tailor-made offer according to the needs of his partner.

Being accompanied by a trusted service provider with its experience and knowledge is an indispensable weapon of competitiveness : advantageous rates on transport and storage areas, advice on inventory management, real-time traceability tools, mechanization … Outsourcing logistics and transportation has many advantages. From a financial point of view, it is often cheaper to use a quality provider that meets the requirements of the trade than a cheaper provider.

At C-LOG, we offer personalized support for your omnichannel strategy. Special operations and flow optimization are our daily tasks and we strive to support our partners in a strong approach to optimizing their logistics as well as their transportation. Our main asset: a status of freight forwarder and a partnership with multiple brands that allow us to benefit from advantageous rates and advice for your logistics and transport.

 

WHAT ARE THE NEW CHALLENGES / NEEDS OF BRANDS / CONSUMERS

“The right product, in the right place, at the right time,” sums up the need for logistics activity.

The importance of omnichannel is no longer to prove since it has been at the heart of the issues for several years now. As such, brands had to put in place a strong strategy to meet the new needs of consumers: the mix of flows has sometimes become too complex for brands that have never really mastered logistics and transport.

Another complex flow to drive for the brands is the warehouse return. It arises as an important reflection for the ready-to-wear brands that have to deal with large quantities of unsold products for several years. The return to the warehouse must be optimized as well as the flows to the consumer. A transport strategy must be set up using a specialized warehouse return transport service provider, both at the store collection and at the warehouse.

Fast delivery and CSR approach are other issues that summarize the logistic activity for the years to come. Speed ​​of execution is a key element for the brands because the financial stakes related to this merchandise are important. Since December 2018, C-LOG has been ISO 14001 certified and is committed to offering a global offer that respects the environment.

Also find out how to choose your logistics provider and how to outsource your transport ?