Sales and Fulfillment

Key advantages of utilizing managed logistics services

Businesses are always looking at ways to streamline their operations, cut overhead costs, and optimise the available resources. One such key focus area is managing supply chain operations, and managed logistics services are offering a transformative approach, helping businesses enhance efficiency while reducing costs. The advantages of managed logistics are significant, from improved inventory management to effectively navigating supply chain complexities, redefining the logistics operations for the modern era.

Understanding managed logistics services

Although they may seem similar to transportation management, logistics management services encompass a greater scope within a company’s supply chain. Managed logistics services take care of everything from inventory storage and warehouse management to packaging, order fulfilment, shipping, and returns management. Leveraging the right managed logistics service means businesses can focus on improving their value proposition and customer experience without having to worry about day-to-day logistics operations.

Any businesses looking to outsource their transportation, warehouse management, or order fulfilment can benefit from these services, facilitating improved inventory management and optimised resource utilisation. They can also help businesses effectively navigate the complex regulatory landscape, especially when expanding into global markets.

Advantages of managed logistics services

There are no two ways about the fact that logistics management services play a pivotal role in today’s global economy and can be a strategic source of competitive advantage. Here is how managed logistics services can help businesses simplify and optimise their supply chain:

Improved inventory management

Inventory carrying cost is one of the biggest expenses businesses must optimise to improve their supply chain and logistics operations. Efficient logistics management ensures effective warehouse management with regular inventory checks and seasonal management to ensure optimal inventory levels and improved inventory management.

Optimised transportation and routing

Leveraging the expertise and technological capabilities managed logistics services offer, businesses can optimise transportation routes and delivery schedules to ensure timely deliveries, reduced fuel expenses, and minimal transit time and delays.

Reduced overhead costs

An experienced third-party logistics services provider can help companies develop effective logistics cost-reduction strategies and reduce their overhead costs significantly by benefiting from the economies of scale. No infrastructure and warehouse management investment further contributes to cost savings, allowing for a more efficient resource allocation towards the primary strengths and competencies of the business.

Enhanced operational efficiency

Another critical advantage of managed logistics services is the access to rich expertise and next-gen technology that can help businesses enhance overall operational efficiency when it comes to supply chain and logistics management, order fulfilment, and inventory management. Leveraging technology can allow companies to embrace automation where possible, improving time management efficiency and reducing chances for error. Data-driven insights allow businesses to be agile, maintaining the right inventory levels and responding quickly to changing market dynamics to keep up with customer expectations. Additionally, the opportunity to outsource non-core functions allows companies to focus on their core competencies to optimise their value proposition and gain a sustainable competitive edge.

Optimised supply chain

Representing a significant aspect of modern supply chains, enhanced logistics efficiency also translates to an optimised supply chain with efficient risk management and mitigation strategies. Logistics management services not only reduce the risk of errors or product damage – ensuring efficient order fulfilment – but they also contribute towards a robust supply chain network that can ensure business continuity in the face of disruption.

Enhanced customer satisfaction

All the nuances above culminate in enhanced customer satisfaction levels with order accuracy, effective packaging and handling, and timely delivery. Modern managed logistics solutions also facilitate seamless communication with the customers at every stage, from when customers place their orders to delivery and return management. The real-time tracking and order updates also promote transparency and visibility in the order fulfilment process, further contributing to customer experience and satisfaction.

How can Infosys BPM help achieve improved inventory management?

Transforming the end-to-end logistics processes, Infosys BPM managed logistics services can help businesses minimise their operational costs, ensure global logistics compliance, and adopt a customer-centric approach for a sustainable logistics value chain. With a range of specialised logistics services encompassing everything from transport planning and execution, freight claims management, and warehouse management to analytics and design, compliance management, and reporting, you can streamline logistics and supply chain operations for improved inventory management and optimised logistics costs.