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Companies that are production-based have the most essential need for transport logistics. That doesn’t mean that other companies do not have the need, but unlike those in the production environment, those companies do have the option to ask vendors to drop-ship orders directly to their customers.
In a production environment, the company has only two options: ship the orders itself or hire an outsourcing company to handle the transport logistics. In today’s market more companies are choosing to outsource transport logistics because of the cost-effective nature. While it may mean eliminating jobs for companies that are already established, it also allows those companies to increase their profitability and provide better for their customers and remaining employees.
When a company produces products that means they make something out of raw products which they in turn sell to other customers. That means they must maintain efficient transport logistics personnel either in house or from an outsourcing company. While some companies make attempts to deliver products to only certain regions on certain days of the week, this can cause problems for those customers who may have the need to receive their orders sooner than that. Companies must be flexible when it comes to fulfillment services in order to remain in business.
Of course, a company that relies on productions relies on more than just transport logistics; it must also be in a position to fulfillment services that meet with the customers needs as well. Though transport logistics is an important part of the process, it is not the only one. A company must be able to incorporate order fulfillment, inventory management and transport logistics effectively in order to meet all of their needs of their customers. Having any one of these without the other will not provide the scope of proficiency that is necessary to make a company successful.
For companies who rely on production it is essential to be able to incorporate their production schedules with their transport logistics. As soon as a customer’s order comes off the production line it should ready to transport unless the customer prefers a different delivery schedule. You can accomplish the best efficiency if you schedule delivery as soon as you know your customer’s order is going into the production phase–or even earlier if you know when it will be completed. Being able to provide prompt delivery of orders will assure a company of continued success.