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Showing posts from June, 2021

Supply Chain Management vs Logistics: Differences, Similarities and Roles

The difference in Supply Chain and Logistics A supply chain is the network between a company and its suppliers and customers that includes all the transactions involved in transforming raw goods into salable products. The network includes the activities, people, technology, information and resources, while the functional teams involved in the company’s network includes sales, sourcing, procurement, production, logistics and customer service. Logistics and logistics management is a subset of processes that fall under supply chain management that plans, executes, reports and coordinates the movement of goods within an organization’s network of stakeholders. The goal of logistics is to get the product from point A to point B at the lowest cost with the best service. A supply chain, on the other hand, is the coordination, management and strategy that drives the flow of data, information and logistics to deliver the best product and service to all stakeholders in the process of converting r

What is the Difference Between Logistics and Supply Chain Management?

The Evolution of Supply Chain Management First, let’s look back in time and understand the evolution of supply chain management and how it became a sector of the modern-day enterprise. According to the consultant Cerasis, roots in logistics can be traced in both engineering and operations research. In the 1940’s during World War II, scientists used analytics to study military logistics. In the post-war, logistics was more about understanding the mechanization of pallets and loading cargo, as it became slightly more modular and has gravitated away from breakbulk. Then trucking became more prominent and important in the 1960s, as did the interaction of truckload shipments - and not just rail and ocean shipments – began to collaborate with warehousing, material handling and combine with other freight. The 1980s hatched the age of computerization and the use of data for logistics planning, inventory and truck routing. During the 1980s and into the 1990s is when the term “supply chain” and

7 Steps To Starting A Transport And Logistics Business

Thinking of starting your own transport and logistics company? While getting into the industry is not difficult, staying successful as a trucking company can be challenging if your business plan, finances and recruitment strategy aren’t solid from day one. Whether you’re starting off with a bakkie or a minibus, you need to ensure you’re prepared for high competition because of the transport and logistics industry’s low barrier to entry.  Why should I start a transport and logistics company? Aside from the ease of access into the industry, you don’t need much capital to start off with – but you will need to do your homework. This is the only way you’ll build a sustainable business. “In many instances the entrepreneur starts these businesses with little to no capital, relying instead on revenue derived from the business to cover all overheads from day one,” according to BizConnect. “Seek out customers and contracts before you start the business because transport contracts don’t magically

Important Things You Need to Know About Freight Forwarding

Freight forwarding is one of the most widely used methods of international transport for both business and personal use. Freight forwarding companies coordinate the shipment of goods from one destination to another using a range of carriers, including air freight, ocean freight, road freight, and, in some cases, railway freight. The process of freight forwarding might seem daunting, especially if you’re not familiar with the process of freight shipping, but these thirteen facts you need to know about freight forwarding will help you through the process. 1. What is a freight forwarder? A freight forwarder is responsible for the transportation of goods between one destination and another. Freight forwarding companies specialize in arranging the whole process for their shippers, from the storage to the shipping of their merchandise. They act as an intermediary between the shipper and transportation services, liaising with various carriers to negotiate on price and decide on the most econo

What is a Logistics Company? What Does a Logistics Company Do?

The ability to optimize the delivery of goods from manufacturer to consumer is the key to a successful business. Therefore, every entrepreneur (both experienced and novice) needs to understand what it is. Logistics is the science of the process of moving a product or service from the starting point (producer) to the endpoint (consumer). All processes related to the transportation of goods are subject to logistics. Not all entrepreneurs understand that even the product itself is established and works without interruptions only due to the fact that the logistic scheme of interactions is clearly verified and calculated. From the explanation above, a simple layman or a newbie in the business world may not immediately understand the whole essence of logistics. Logistics companies plan, implement, and control the movement and storage of goods, services, or information within a supply chain and between the points of origin and consumption. Various logistics companies handle some or all of the

Logistics for Business Defined: Importance Role & Benefits

You may not think of Bismillah Loogistics company as a logistician. But their axiom that “an army marches on its stomach”—that is, keeping forces well-provisioned is fundamental to success in war—launched logistics as a field of military concentration. Today, the term “logistics” applies to the reliable movement of supplies and finished products. According to a Statista study, U.S. businesses spent $1.63 trillion on logistics in 2019, moving goods from origin to end-user through various supply chain network segments. By 2025, a total of 5.95 trillions of ton-miles of freight will move across the United States. Without efficient logistics, a business cannot win the profitability war. What Is Logistics? While the terms “logistics” and “supply chain” are sometimes used interchangeably, logistics is an element of the overall supply chain. Logistics refers to the movement of goods from Point A to Point B, which entails two functions: transportation and warehousing. The overall supply chain

Important Guide to Air Freight Procedures

There are only 3 modes of transportation: Land, Sea, and Air. Sea freight consists of the bulk of global trade transportation, land transportation is predominantly used for cross border and last-mile transportation. Airfreight is a transportation service that can be complex, fast-paced and exciting. Air freight involves moving cargo from Point A to Point B via aircraft. Using air freight, cargo is transported quickly across the world, however, whilst it may seem simple, the process can get quite complicated. You need to think about whether air freight is right for you, understand all what’s involved, have the right documentation so your shipment isn’t delayed, and engage a professional freight forwarder to ensure your transaction flows smoothly. Air Freight transportation is for cargoes that fall into these few categories: Perishable Goods/Live animals that have a limited lifespan Cargo with an ultra-high value that requires additional security Cargo in small quantities or small volume

How Does Freight Forwarding Work?

Importing and exporting goods and materials is incredibly lucrative and important for the growth of businesses across many industries. For a growing business expanding its customer base globally, the complexity of logistics, paperwork and customs can be extremely daunting. Luckily, freight forwarders can act as a middleman or intermediary between the shipper and transportation services. They liase with various carriers, negotiate the best prices and help to identify the most economical, reliable and fastest route for shipping. Using a freight forwarder can be incredibly cost-effective for a business. Due to the high volume of goods they ship, freight forwarders can negotiate lower prices and consolidate shipments between different businesses to lower the cost. The use of a freight forwarder allows for flexibility and versatility as they have the ability and resources to handle unforeseen circumstances such as rerouted shipments or delays at sea. Ensuring that goods are delivered on tim

What is Customs Clearance & 7 Most Common Issues in Customs Clearance

Customs clearance work involves preparation and submission of documentation required to facilitate export or imports into the country, representing client during customs examination, assessment, payment of duty and co-taking delivery of cargo from customs after clearance along with documents. Customs clearance is a necessary procedure before goods can be imported or exported internationally. If a shipment is cleared, then the shipper will provide documentation confirming customs duties that are paid and the shipment can be processed. After your package clears customs in its destination country, it will be ready to go into the regular mail delivery system of its destination country. Your package will go to a postal delivery service hub, be sorted, and make its way out to its final destination. Some of the documents involved in customs clearance are : Exports Documentation: Purchase order from Buyer, Sales Invoice, Packing List, Shipping bill, Bill of Lading or air waybill, Certificate o