Are you a frequent online shopper? If you do, you must be familiar with logistics. Simply put, logistics help businesses deliver their goods from one point to another. However, how a logistics company works is more complex than that. There are several processes involved in moving goods to the intended recipient.

Purposes of Logistics

There are two primary purposes of logistics companies: transportation and warehousing. Transportation management covers the preparation, optimization, and execution of vehicles used to transport goods between customers, retail locations, and warehouses. It’s multimodal and may involve roads, rails, air, and ocean.

Meanwhile, warehousing includes two primary tasks, order fulfillment and inventory control. Additionally, it entails overseeing warehouse operations and infrastructure, such as where product orders are collected, processed, and delivered to the customer.

Elements of Logistics

Logistics have five primary elements, all of which have their role in defining the entire activities of logistic companies in a supply chain. Let’s break down below:

1. Storage, Warehousing, and Materials Handling

All these three have a role in enabling businesses to supply a steady stream of goods. What makes this necessary, exactly? Although buyers sometimes seek products at different rates than the supplies, companies must keep operating as usual.

There will always be an imbalance between unpredictable demand and steady supply. The proper course of action is to store additional products from a manufacturer until buyers ask for them. Warehouse center buildings are necessary to do this.

2. Packaging and Unitization

Taking care of and maintaining the goods and their condition is a crucial logistics component. The packaging and unitization are equally essential aspects of that. The latter is to assist in transportation and storage. Also, all goods are packaged in cube boxes to streamline product storage and transport.

3. Inventory

Inventory is strongly tied to warehousing and storage. It addresses the question of what goods to keep, how much, and where they are located. To put it simply, inventory is a logistic element regulating the flow of products coming in and out of the warehouse.

4. Transportation

Transportation covers all existing modes, including air transport, cargo shipping, cargo trains, and road vehicles. Without transportation, goods can’t move from one place to another.

5. Information and Control

Information and controls play a role in assisting the development of information systems to regulate various logistic processes. They are also essential for inventory and demand forecasting, which are also crucial components of logistics.

How Does Logistics Work?

To make it easier to comprehend how logistics company works, let’s see below how minerals like kaolin are transported around the world:

Kaolin products for a buyer are stored in a mining logistic company’s warehouse (usually at ports) before shipping.
Once the logistics management receives the order, the products are packed as per the buyer’s requirement.
The logistics team processes the order, which is subsequently sent to the destination. Technically, minerals such as kaolin are transported overseas by bulk carrier ship.
Logistics create a tracking ID for the products and have them constantly scanned to provide the end customer with tracking capabilities.

Those are the standard procedures followed by the logistics team. If it’s international shipping orders, there will be more internal processes.

What Makes a Good Logistics Company?

Here are five significant qualities of a trustworthy logistics company:

Experience: It takes many processes to move goods across the nation and even the world. Reliable logistics are those who can overcome all issues during the shipping process.
Solid Customer Service: Reliable logistics companies will not only be there when customers require them and capable of responding to all inquiries, but the customers will also never feel like a bother.
Offer Many Services: A good logistics company usually offers various logistics services that cover most customer shipment needs.
Detail- and Time-Oriented: The shipping process involves many processes. The best companies ensure that even the most minor process is considered. Also, they ensure that the order is delivered by the scheduled time.

That’s how a logistics company works. Nearly all businesses nowadays require logistics, including industries that require kaolin minerals. And should you need quality kaolin for your business, PT Yudian Kawan Mineral is here for you. We have years of experience supplying various kaolin products to local and international industries.

Ever Heard of Logistic Companies? Here’s How They Work