For raw materials, service providers, and supply chain processes to work properly, it is necessary to establish a series of steps, which are called logistic flow. In this article, we will explain what a logistics flow is and how to optimize a company’s supply chain.
The logistics flow is the set of activities that are carried out throughout the manufacturing and distribution stage of the goods, these activities are physical movements that are also called value chains. Correct management of the logistics flow helps to improve the supply chain.
In logistics there are internal and external flows; the internal flow or production flow is the one that carries out the circulation of raw materials in the manufacturing network, this includes the transportation of goods, storage, and internal operational functions that are intended for the production of items within the company. On the other hand, the external logistic flow is in charge of the supply and distribution chain, starting with the extraction of raw materials and ending with the distribution of goods and services to final customers through transportation channels.
The main value of logistics flow management is to increase the value of the product for the customer, making the cost for the company the minimum by improving each of the processes in the production chain. In addition, optimization improves the efficiency of the distribution chain, resulting in the delivery of goods to customers in a timely manner.
Optimizing the logistics flow both internally and externally allows extracting information from each process to improve failures and establish strategies that favor customer loyalty and increase the productivity of production lines, improve the competitiveness of information systems, and become more effective with the systematization of processes.
As you can see, the management and optimization of the logistic flow is a crucial activity for any company since it significantly improves the execution of processes, increases productivity, and contributes to an improvement in customer service.
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