Why do you need global logistics?
As the global economy continues to grow, the demand for an effective global logistics company becomes more urgent every day. The expansion of e-commerce worldwide has led to an unprecedented need for companies that can effectively manage transportation, packaging, inventory, supplies, and warehousing.
According to the World Trade Organization, the volume of goods being traded on an international level is on the rise. As this trend continues, it’s up to the global logistics industry to ensure the flow of goods is done as smoothly and efficiently as possible.
The truth is, the global logistics process is just as much an art as it is science. It involves the preparation, movement, packaging, and storage of goods. Global logistics companies, such as Gilbert International, work with distribution centers all over the world, which is why it’s often best to work with experts rather than try to go it alone.
Managing the Supply Chain
Global logistics is all about managing the supply chain and everything that goes with it. It’s a complicated process, especially considering that the cost of freight and storage are continually shifting. What’s more, there are various international laws to deal with, security compliance programs to negotiate, and a multitude of languages and currencies to manage.
The larger your operation, the more you’ll have to manage as part of your global logistics operation. Setting up an effective supply chain that can deliver varying materials to different locations at specific times can be a challenge.
5 Key Issues for Global Logistics Effectiveness
To be successful on a global level, you’re going to need to adapt and maintain a dynamic approach to how you conduct international business. The landscape is constantly changing, and your business needs to be able to adapt. With that in mind, let’s take a look at the five key issues for global logistics effectiveness.
1. Product Movement
For starters, you should have the means to efficiently move products and supplies through your supply chain, from manufacturing to the end-user. Unfortunately, in many companies, the flow between vendors, manufacturing sites, warehouses, and customers is often imbalanced, with components and finished products not where they need to be.
In order to ensure a smooth pipeline, you’ll likely need to deal with different carriers, modes, and services from all over the world. You’ll also need some flexibility in case something in the supply chain fails, and you need an alternative as soon as possible. You’ll often need to work with all types of modes, from air freight to ocean freight, to dealing with swings in volumes and requirements.
2. Information Movement
As your product and supplies move, so too does your information about them. You need to follow inventories and locations in case action is required on your part. To be able to make the right decisions for your business, you’ll need plenty of accurate and timely information.
Your business needs a sound plan to handle customer orders, deal with purchasing, customer service, manufacturing, marketing, sales, accounting, and beyond. It’s crucial to have a system in place to accommodate planning, material requirements, inventory tracking, sales forecasting, and much more.
3. Dynamic Responsiveness
When working in a global marketplace, you need the ability to respond to changes quickly. Things can change very quickly, and when one supplier can’t get the job done, you need the ability to turn to another as soon as possible.
In the global marketplace, backorders are not acceptable. If a customer can’t get the product from you, then they’ll look elsewhere. Logistics is your link to a diverse geographical spread of warehouses, customers, vendors, and manufacturers. Global logistics means moving products and information as quickly across the world as if you were dealing with the vendor next door.
4. Cost Control
To maintain a profitable business, you need ways to manage costs. However, it’s tempting to minimize the cost of logistics elements, like warehousing and freight, but this can lead to less than effective logistics when it comes to satisfying customers.
Effective global logistics management weighs the pros and cons of its logistic decisions not by cost alone, but by efficiency. This is where global logistics becomes something of an art, in balancing the price of services against the efficiency of business and customer satisfaction. In times like these, it takes more than an accounting sheet to make the optimal decision.
5. Integration
Bringing it all together--that’s the true goal of global logistics. It’s a process that requires each element to do its part. Everything in your business should work together, from vendors to your business to your customers all over the world.
When executed properly, global logistics can give you a competitive advantage. Work with key customers and take their feedback seriously. Then, integrate their needs into your global logistics to get them what they need when they need it. Build partnerships and alliances that help to guide how you do business.
Partnering With a Global Logistics Company
Given the complexity of global logistics, many companies find it beneficial to partner with a global logistics company. The right partner can improve supply chain efficiency, enhance overall customer service, and contain costs.
At Gilbert International, we are your logistics experts who have solutions for simple to complex workloads. We offer freight forwarding, kitting, labeling, and final assembly, reverse logistics capabilities, quality product inspection, and intensive inspection unloading/reloading for homeland security of border protection.
Gilbert International also offers services for warehousing and distribution, transportation, and customs brokerage. We have experience working with facilities all over the world, so don’t hesitate to reach out.
It’s About the Bottom Line
At the end of the day, global logistics is about increasing efficiency to make your customers happy and boost your bottom line. Partnering with a global logistics company like Gilbert International is an excellent way to get started optimizing the process.
At Gilbert International, we understand that time is money. Our integrated services and supply chain solutions may be just what your business needs to take things to the next level. Plus, our world-class customer service is here for you.