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International Forwarding Association Blog » Logistics services » The importance of logistics for the supply chain
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The importance of logistics for the supply chain

Supply chains are an integral part of the modern production. They are used for the transport of raw materials, returning finished products and for the exchange of money and data.

The logistic provided by international freight forwarding is the primary means of transporting raw materials as well as for the return of finished products when recycling is needed or for other reasons.  Many raw materials are transported from one country to another which is done by the forwarders throughout Europe.

 

Storage as part of the supply chain

The companies from the international freight forwarders network offer storage services in both the main European destinations as well as in other areas close to the stores and customers in the different European countries. The modern warehouses provide suitable conditions for storage of different types of materials and goods. This allows for convenient storage of sufficient volumes before the next lot has to be delivered to the end customers.

 

forwarders throughout Europe

 

Defining the types of transport for the freight forwarding services

The companies from the European network for logistics services work together in a combined effort to satisfy the needs of their customers at the lowest possible prices. This is the reason why either combines transport or single transport is chosen for the different shipments in order to achieve the lowest possible price. Of course, the delivery terms are taken into consideration as well when the most suitable transport is chosen.  Sea and water transport is chosen for normal deliveries due to the lower prices of the service, but for faster deliveries, the companies from the freight forwarders association provide intermodal routes which often combine sea and road transport.

 

Reverse logistics

Reverse logistics has become an increasingly important part of the supply chain and is offered by the forwarders throughout Еurope when certain products need to be returned due to complaints, for recycling or for disposal of depreciated goods to the designated disposal sites. It is an essential

service which complements the other activities included in the supply chain. Today, companies are becoming increasingly dependent on these types of services for providing guaranteed satisfaction to their customers.

 

European network for logistics services

 

The objectives of logistics related to the supply chains

  • The companies from the network of freight forwarders have common goals to provide more efficient supply chains for their customers.
  • One of their objectives is to react as promptly as possible to any shifts in the market and provide the services needed in a timely manner.
  • Thanks to the modern data systems and continuous communication among the employees of the member companies of the freight forwarders network they minimize their inventory and use it more rationally which helps provide logistics services at lower prices.
  • Consolidation is another method for organizing different loads and for combining smaller shipments in one groupage transport service.
  • By delivering on their objectives related to the supply chains, the international freight forwarders help support the entire product cycle of the manufacturers and retailers who use their service.

 

Strategies which help the modernization and improvement of the efficiency of the logistics service related to the supply chains

The logistics companies form the freight forwarders network organize their activities at destinations which have an intensive demand for supplies.

The choice for locating the warehouses is made based on the main destination where specific products are in demand.

The modern logistics data systems are essential tools for efficient communication among the employees of the freight forwarders directory as well as for presenting the customers with real-time information regarding the status of the shipment and the goods during the forwarding. The tracking is done via GPS systems and barcodes.