Different Types of Logistics: Procurement, Production, Sales and Recovery

Logistics can be defined as the process of managing complex operations for efficiently moving products across warehouses, cities, or countries. It is one of the most important processes that affects your business growth. Without an efficient flow of products, you cannot provide a good experience to your customers.

Large corporations too face logistical problems, but they have the resources to easily solve them. For example, a multinational corporation is likely to have its own factories to manufacture products, warehouses to stock finished goods, and vehicles to transport the products. These different departments work together as a unit. However, for SMBs, logistics and supply chain management is not so simple. These businesses work with third parties to source, store, and transport products. With several parties involved in the process, the main enterprise does not have much control over the product’s journey until it arrives at its destination. This creates the scope for error, which leads to delays.

With 56% of customers between the age of 18-34 years preferring same-day deliveries, you may lose your customers to your competitors if you cannot deliver products timely. Finding the suitable logistics provider is the solution to your logistics and supply chain management requirements.

When a Baroda-based businessperson decided to sell terracotta souvenirs from Kolkata, he faced many typical logistics and supply chain management challenges. He struggled to find a reliable supplier. Once he managed to select one, he could not figure out the most suitable freight shipping for transporting the product from Kolkata to Baroda. Quite often, he was completely unaware of the product’s delivery status and was just given several lists of contact details for coordination.

When he received the products, he was horrified to see that some products were damaged during transportation, and several products were missing. The deliveries were extremely delayed, and he was continuously losing customers. Eventually, his neck-deep debts forced him to wind up his business. You can easily avoid your business from meeting the same fate by pairing up with a good logistics provider. When you go ahead to pick up the suitable logistics provider, you may check out if it can provide you the following:-

Knowing the different types of logistics can help you prepare better for complex logistical errors or problems. This can prevent unexpected delays and make your customers more satisfied. Here are the different types of logistics you should be aware of:

Procurement Logistics – This includes your entire procurement process. Whether you are getting the needed raw materials from manufacturers or finished products from suppliers, procurement logistics covers the complete flow of goods. Procuring the necessary quantities of goods at the right time is important to cut down inventory costs. This is what has made this field receive a lot of attention from SMB owners.

Production Logistics – It covers the flow of procured goods inside a factory. This involves managing the procured parts and materials, and distributing and shipping them to warehouses after packaging. Smoothly linked procurement logistics and sales logistics help SMB owners to upgrade their delivery, warehouse and shipping management.

Sales Logistics – Sales logistics is typically referred to as logistics. Before the growth of online stores and e-commerce marketplaces, sales logistics just involved the delivery of products from the warehouse to wholesalers and retailers. Now, it also includes delivering products directly from production sites to online buyers. Sales logistics requires extremely efficient transportation for improving customer satisfaction.

Recovery Logistics – It is the flow of unused products, items returned by consumers, and reusable products like containers and packaging materials that have fulfilled their role. This ensures that sellers do not need to spend money repeatedly on inventory. Thus, it offers you the better value for money and helps you to meet your business needs despite a tight budget.

If product transportation is not done right, it can risk your reputation and cost you heavily. If you deal in physical goods, here are a few tips that may help you in your supply chain management:

Logistics is the backbone of your business. Thus, it is extremely necessary to manage it efficiently. With a few handy tips and tried-and-tested strategies, it may help you to optimize your logistics management and achieve customer delight.