The logistics value chain covers the various stages involved in transforming a raw material into a finished product. All the way through to delivery to the end customer. Understanding and controlling these processes enables companies to remain competitive and optimise their performance. In this article, we look at the logistics value chain: the stages and challenges involved in optimising it.
Understanding the stages in the logistics value chain
The logistics value chain is made up of several stages. If they are well organized, they can reduce costs and improve customer satisfaction Here are the different stages in the logistics value chain:
Procurement 🚚
Procurement involves obtaining the raw materials needed for production from suppliers. This stage is crucial because it determines the quality and cost of the final products.
Stock management 📦
Optimised stock management is essential to avoid situations of over- or under-stocking (and therefore stock-outs). These situations can be very costly for the company. This is where WMS (Warehouse Management System) solutions come in, enabling inventories to be managed in real time and storage space to be optimised.
Production 🏭
The transformation of raw materials into finished products requires rigorous management of production flows. The efficiency of this stage depends largely on just-in-time management, which minimizes stocks and speeds up the production cycle.
Delivery 🚛
Once the products have been manufactured, they are transported to the point of sale or directly to the end customer. Managing transport, delivery times and the costs associated with this stage are strategic issues. Particularly when it comes to guaranteeing customer satisfaction.
After-sales service 🛠️
Logistics don't stop at delivery! After-sales service plays a crucial role. Managing returns and complaints, providing technical support... these are important factors in building customer loyalty and guaranteeing an optimal experience.
The strategic importance of an optimised logistics value chain
Optimising each stage of the logistics value chain has many advantages for companies. Not only does it reduce costs, it also increases flexibility in the face of market fluctuations. Finally, optimising the logistics value chain increases customer satisfaction.
Digitising the supply chain: accelerating performance 🚀
The rise of new technologies, and WMSs in particular, have transformed logistics management in warehouses. They offer companies visibility over stocks and flows, making it easier to take decisions and improve processes.
The benefits of an optimised value chain💡
- Lower costs. Optimised supply chain management reduces costs at every level. Whether in the supply, storage or distribution of products.
- Improved customer satisfaction. Precise control of lead times and rapid delivery increases customer satisfaction.
- A flexible value chain means you can adapt quickly to changes in the market, minimising the risks associated with variations in demand or the vagaries of suppliers.
Integrating sustainable practices into the supply chain
Nowadays, companies must also take environmental issues into account in their logistics management. Reducing carbon footprints, managing waste and optimising transport are all aspects that can be improved as part of a sustainable approach.
Some solutions for sustainable logistics 🌱
- Optimise transport routes. This reduces the number of kilometres travelled and therefore CO² emissions.
- Use low-emission vehicles. Or other environmentally friendly modes of transport to minimise environmental impact.
- Reduce packaging. This can be an effective solution, particularly if combined with the use of recycled materials to reduce waste.
👉🏻 Find out more about sustainable logistics in our second edition of Scope by Satelix, available here.
Optimise your supply chain with Satelix
The Satelix Logistics WMS solution gives SMEs effective control over their operations by managing logistics flows in real time. With advanced features such as stock management, delivery tracking and picking optimization, Satelix Logistics helps companies cut costs and improve customer satisfaction. Adopting this solution means guaranteeing a high-performance, agile supply chain capable of adapting to market fluctuations.
Let's get in touch to talk about your logistics projects! 👇🏻