There are a few similarities between “Supply Chain Management (SCM) and Logistics” and “Freight Forwarding” but there are key differences that separate the two practices. Understanding each role can help companies make operational improvements, improve customer service and build a competitive advantage. Let’s start by understanding supply chain management and logistics, followed by what does it mean by the term Freight Forwarding, one by one. Supply Chain Management and Logistics In simple words, Supply Chain Management forms the strategy and activities that go into planning, sourcing, producing, and delivering goods to the customer. Along with that, supply chain management helps in handling returns. Logistics focuses on the right products being in the right place at the right time, and how to get them there on time. What Do You Understand by Freight Forwarding? Freight Forwarders act as a mediator between the organization that makes the shipment and the final destination for the goods. Freight Forwarders do not carry out the shipments themselves but offer multiple transport modes such as sea/ocean freight, rail freight, road transport, and air freight shipment to help the producers deliver their product on time to the consumers. Benefits of Supply Chain Management and Logistics VS Freight Forwarding Effective supply chain management is influential for business performance and can have a range of benefits, including the streamlined flow of goods and services as well as better customer satisfaction. Benefits of Supply Chain Management and Logistics Here are some of the benefits of supply chain management:
Benefits of Freight Forwarding Here are some of the benefits of Freight Forwarding:
Why Use Logistics and Supply Chain Management? Logistics and supply chain management help businesses stay competitive. These practices track and coordinate the efficient and cost-effective movement of goods and services, which is key to an organization’s profitability. Logistical Components of the Supply Chain Supply chain logistical components help to manage goods or services. Each element helps move materials, finished goods, and services through the many steps in the supply chain. The following are the logistical components of supply chains:
Why Use Freight Forwarding Services? Hiring freight forwarders to overlook the shipping of your products offers a number of benefits. If you are in two minds deciding if freight forwarding is the best move for your company, here are the advantages you need to consider:
Conclusion:
Logistics & Supply Chain Management and Freight Forwarding are completely different from each other as they have their own roles and services to offer. You can choose any of them as per your requirements. The function of a freight forwarder is far broader than simply scheduling transportation. Today’s freight forwarding partner should adopt a consultative approach. Whereas, supply chain management and logistics help you. Having real-time data metrics at your fingertips will enable you to put in place contingency plans to enable your business to ride out storms and take advantage of opportunities as they arise.
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Logistics is the science of the process of moving a product or service from the starting point (producer) to the endpoint (consumer). Any successful company leader understands the critical nature of well-organized logistics. They recognize that delivering friction less logistics is critical to meeting consumer needs and surpassing the competition. Importance of Logistics Companies
Conclusion
Logistics companies help organizations to stay top in the race and lead the market. It will guarantee that there will be streamlined operations with an assurance of a positive customer experience. Regardless of the niche, business owners will be looking at the need to have impactful logistics. In an era of a competitive market, it is crucial to meet the changing trends and customer demands. |
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