Having proper transportation management is a significant part of logistics management as moving goods from one location to another (whether by air, rail, maritime or road), is one of the main components of this business.
Transportation is an expensive process, however, many companies have overlooked the importance and value of transportation management. Millennium Logistics Management, on the other hand, understands that moving freight has a far reaching impact and the following 3 points cover some of the benefits to keep in mind.
Having an effective transportation management will keep a company’s entire supply chain running smoothly. The last thing we want are supply chain disruptions that can affect the business negatively (as these can be costly and could essentially hurt overall customer satisfaction and loyalty). Therefore, damages caused by disruption can be avoided by creating an effective inventory flow through transportation by moving inventory in and out of a warehouse quickly and efficiently, which reduces overall lead time and saves money on storage.
Last mile logistics (the last stretch before delivery) can be complicated, costly and is oftentimes the part of delivery that causes disruptions and/or delays. In this process, the point of delivery reflects on the organization and its competency as a whole. If a company is continuously having late deliveries, the customer will have a negative impression of this company and will most likely not use their services again. Of course, we want to avoid this at all costs because customer satisfaction is one of the greatest benefits. This can be achieved through proper management of transportation, which can ensure high delivery performance and consistent customer satisfaction.
With a compelling increase in environmental awareness, more and more people are “going green” or contributing in some shape or form in improving our earth and preserving it’s natural resources. As a result, consumers are more conscious of what they are buying and what ideals a company subscribes to. It is no secret that transportation is an emission-heavy industry and if a company has an inefficient transportation process, they increase these environmentally hazardous processes which that can be unappealing to a customer due to the harm that comes with it. Customers want to buy from companies that are taking social responsibility seriously and work hard to reduce their carbon footprint and minimizing energy consumption. Companies having a proper transportation management that focuses in this area will benefit greatly.
There are many other added benefits to establishing a proper transportation management system, if you have questions or would like to learn more, do not hesitate to contact Millennium Logistics Management.
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