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How Does a Logistics Hub Work?

Logistics hub employees looking at computer

Suppliers and eCommerce managers are all too familiar with coordinating with logistics hubs, yet there is still a lot of ambiguity surrounding these facilities. Find out what exactly occurs in a logistics hub and how they function to optimize your supply chain.

What is a Logistics Hub?

Logistics hubs act as linking points that facilitate the efficient flow of goods. Contrary to what most people think, logistics hubs aren’t only used for storage. They’re also the center for the manufacturing, assembly, labeling, organization, coordination, separation, distribution, and transportation of goods for national and international transit.

As businesses become more complex and expand into the global platform, you can only imagine the number of operators, workers, services, goods, and data that go in and out of logistics hubs. Typically, logistics hubs house offices, storage facilities, warehouses, distribution centers, trucking, and shipping services.

Understanding Logistics Management

Logistics management plays a vital role in organizing and implementing policies and regulations to create a seamless workflow, from order fulfillment up until customers receive their parcel.

With the management of tangible resources and consumable items also comes the management of incoming logistical data, including warehousing, materials handling, inventory, packaging, transportation, and security.

To efficiently handle the supply chain, most logistics operators will use software or AI to analyze data and optimize logistics operations. Logistics management focuses on two functions: inbound (internal operations) and outbound (flow from the point of origin to consumption).

Flow of Logistics Management

A logistics management network will involve several points of distribution. These may include additional intermediaries and vendors, but the main linking points are:

  • Suppliers or manufacturing center
  • Distribution centers
  • Warehouses and storage facilities
  • Transportation facilities
  • Destination point (consumer or commercial retail location)

For goods to efficiently and seamlessly move along this path, it is necessary to apply the four main types of logistics management. The good news is that you don’t have to figure it out on your own! With the help of logistics experts and expert freight platforms like GoShip.com, it is possible to achieve smooth-sailing logistics operations.

1. Supply and Inventory Management

Quality logistics companies will have state-of-the-art inventory management software to help coordinate, plan, and procure raw materials to complete logistics tasks. This also involves transportation, storage, and inventory of goods at each stage of the logistics process.

2. Distribution and Transportation

This involves the movement of stored materials to their predetermined destination, including loading, unloading, and inventory of stock and how they are used. Generally, this type of logistics management will control the movement of stock from a warehouse to the retail stores that distribute the goods to the public.

3. Production Logistics

The main goal of production logistics and management is to distribute supplies to forward production. This will also involve storage, transportation, and testing to achieve positive customer feedback and capital efficiency.

4. Returns and Reverse Logistics

This type of logistics management concerns reclaiming goods and materials, such as when a customer seeks to return a product and requests a refund.

How GoShip.com Can Offer Streamlined Logistics Solutions

Unlike your regular logistics operators, GoShip.com partnered up with the best freight shipping carriers and services in North America to cater to each client’s precise needs and goals. 

You can rest assured that each of these shipping companies uses the best methods and latest technology to deal with warehousing, inventory, distribution, transportation, and data analysis.

Conclusion

The truth is, you don’t have to know everything about logistics and shipping operations. Leave it to the experts to safely and efficiently handle your goods from order fulfillment up until you get a 5-star review for customers.

With the help of logistics management experts, it is possible to achieve customer retention and satisfaction. This can ultimately drive up revenue by saving on operational costs through proper organization of the supply chain.

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