Many assume that logistics and supply chain management are the same thing, but they're actually two distinct processes that work in harmony to create a more efficient way to manage your supply chain. It's vitally important for shippers to understand these differences, as to avoid skipping any key parts of a full and efficient supply chain process.
Partnering with a third-party logistics provider (3PL) like GlobalTranz for logistics and supply chain management can provide you with improved end-to-end supply chain visibility, from the intake of raw materials to the delivery of a final product, allowing you to grow your business to new heights.
What is supply chain management (SCM)?
Managing the supply chain involves product development, from the gathering and intake of raw materials, through the manufacturing process and until the final goods are delivered.
Supply Chain Management Functions
What is logistics management?
Logistics management solutions focus on the storage, movement and distribution of goods within a specific section of the supply chain. Logistics mainly deals in a supply chain's final processes, mainly spanning the products' storage and delivery.
Core Functions of Logistics Management
How can partnering with a 3PL simplify your supply chain?
Today’s supply chain process follows goods through four main points of contact: the supplier, the manufacturer, the retailer and the customer or end user. Partnering with a third-party logistics provider (3PL) can help you streamline your process and maximize your efforts every step of the way.
Supplier
The process begins with the sourcing of raw materials from a supplier. It’s important to not only source materials that fit within your budget but to also find the best raw materials possible for your goods.
How can a 3PL help when sourcing materials?
One of the biggest benefits to working with a 3PL is gaining access to their extensive list of relationships, including those with materials providers and international freight carriers. Your logistics partner can help you find, order and store quality materials to fit your unique goals and needs.
Manufacturer
Once raw materials are sourced, the goods then change hands and are assembled by a manufacturer. While some shippers have in-house manufacturing processes, others may need to contract out for these services. Either way, it is vital that you use a trusted, reliable manufacturer to maximize your supply chain.
How can a 3PL help maximize the manufacturing stage?
Logistics service providers are experts at streamlining operations and lowering costs, all while providing you with increased control and visibility over the manufacturing of your goods. As goods are produced, GlobalTranz offers inventory management and improved product visibility to help keep your supply chain on the right track.
Retailer
After the goods are completed and have been approved by the manufacturer, they are sent to a retailer. Like with manufacturers, retailers may be internal or external, in the form of brick-and-mortar storefronts, e-commerce sites, other businesses or even shipping warehouses.
How can a third party logistics company help manage sales and fulfillment?
Some 3PL partners, including GlobalTranz, offer retail-specific supply chain services like fixture rollouts, holiday promotions and nationwide warehousing solutions. We’ll also help you set up delivery to limited access locations or stores with special delivery requirements.
Customer
Once the goods are purchased or traded, they change hands one last time. Finally, the goods make it to their intended endpoint: the customer.
How can a 3PL partner help deliver products to an end user?
A 3PL can connect you to top-rated carriers with pre-negotiated low rates to save you time, money and shipping headaches. At GlobalTranz, our network of more than 85,000 carriers offer an array of special delivery solutions, including white glove delivery, final mile delivery and light assembly. Plus, shippers can track freight and access final invoices via GlobalTranz TMS!
Streamline Your Supply Chain and Logistics with GlobalTranz
Ready to streamline your supply chain and save money? Our team of dedicated logistics professionals can help create tailored solutions as unique as your business. Having served thousands of shippers, we understand the history of the supply chain, how it impacts today’s decisions, logistics challenges, and trends for the future of shipping. Talk to a specialist today to take your supply chain and logistics to the next level.