From a leading logistics provider

December 9, 2020
What is Supply Chain Logistics and Why is it Critical?

What is Supply Chain Logistics?

Let’s start with the basics. A supply chain is the interlinking of organisations and processes to produce and deliver a finished product to its customers. Logistics is the storage and movements of physical components and goods along the supply chain.


Why is Supply Chain Logistics important?

Its no surprise that supply chain logistics is critical to any business which makes, supplies or sells a physical product. No supply chain, or no logistics, mean no finished product to sell!

Many organisations typically make up a supply chain. They can be highly complex and – with just-in-time production, ever shorter lead times and high consumer demand – having efficient logistics are critical.

With more and more people now shopping for products online today, it’s also perhaps ever more important to have smooth and efficient supply chain logistics.


How can Supply Chain Logistics help your business?

The logistics of receiving, moving, storing and sending goods are central to the success of any product. Most modern supply chains are not only nationwide but worldwide.

So how can smooth logistics aid your supply chain and make your business more profitable?


1. Boosting your productivity

A smooth-running supply chain boosts your business’ productivity.

Receiving and storing materials, supplying production lines and distributing finished products to customers and retailers, are all pivotal steps along your supply chain.

By consolidating your supply chain logistics to one trusted provider you can reduce costs and increase efficiency.


2. Just-in-Time Logistics

Storing goods and components is expensive, so most modern manufacturing is often ‘Just In Time’. This means parts are only delivered to the production line as needed and completed goods are quickly despatched to customers or retailers.

Supply Chain Logistics is critical to tracking and moving parts and products to ensure the minimum amount of warehousing space and time is required.

Whether your product is food, drink, electronics, pharmaceuticals or any other type goods, an effective supply chain logistics partner will ensure it arrives just-in-time to the production line or final destination.


3. End-to-End Supply Chain Logistics

End-to-End (E2E) or Complete Supply Chain Logistics is an umbrella term used to describe the management of every single stage of a supply chain, from raw materials to final goods.

Logistics is naturally a critical part of any end-to-end supply chain. Timing needs to be precise to ensure the right goods are in the right place at the right time.

Delivered successfully, complete end-to-end supply chain logistics is critical to modern businesses aiming to satisfy customers whilst maximising productivity and profitability.


Why are logistics so important to supply chains?

Effectively organising your logistics is a crucial element in supply chain management. Seamless logistics will make sure your goods keep pace with demands and satisfy customers.

Whatever the size of your business, your goal is most likely to grow and expand. Efficient logistics can help you achieve this by cutting the time and costs spent moving your goods and products from one step of the chain to the next.

Better logistics will improve productivity and efficiency to make your goods more available and more profitable, helping your company grow.


What are the challenges of Supply Chain Logistics?

Any supply chain is only as strong as its weakest link. Each step or stage where logistics are needed is critical.

In today’s marketplaces, supply chains can be geographically long or short. Some suppliers can be near whilst others are on the other side of the world.

Communication is vital, both in terms of sharing information and feeding back. Not only must the human elements of a supply chain communicate clearly but, increasingly, IT and other systems must integrate seamlessly.

A trusted third-party logistics provider can help increase communication; ensuring all inputs and outputs of the supply chain are working in harmony.


What is Third-Party Logistics (3PL)?

Supply-Chain Logistics are typically delivered by a Third-Party Logistics provider.

Third-Party logistics (abbreviated to 3PL) is the management, movement and storage of parts, products, goods and orders for your business by a skilled partner.  

Third-Party logistics can benefit your business dramatically by offering cost savings, lowering capital expenditure and creating greater focus and flexibility.

As your business grows you can reply upon a dedicated 3PL provider to deliver the services distribution, warehousing and fulfilment services you need.


What is Fourth-Party Logistics (4PL)?

Taking 3PL a step further, a Fourth-Party Logistics (4PL) provider not only delivers your core logistics but provides a total supply chain logistics solution.

In addition to the role of a 3PL, a 4PL partner can also source inputs and manage some of your production resources, technology, infrastructure and even other 3PLs.

Using a 4PL is the ultimate extension of end-to-end supply chain logistics.


How can Johnston Logistics UK improve your Supply Chain Logistics?

When optimising your supply chain logistics, the third-party logistics provider you choose is critical.

At Johnston Logistics UK, we’re trusted by major supermarkets, leading brands and growing companies alike to deliver their third-party logistics, warehousing and fulfilment. As a bonded warehouse we are particular experts in handling alcohol and imported goods.

At our 640,000 square feet facility we process over 1,000,000 individual stock movements each year. As well as third-party and supply chain logistics, we provide a full range of value-added services including warehousing, contract packing, e-commerce fulfilment, pick n pack, transportation management and reworking.

With over 40 years’ experience, we’ve invested in leading warehouse management systems and software to provide easy integration and transparent management information at every step.

By providing thorough third-party logistics of your materials, parts, ingredients and finished goods, we can ensure your supply chain logistics are more productive and enhance your profitability.

For more information on our supply chain logistics or our third and fourth party logistics please get in touch today.