Industrial logistics
Why Invest in Industrial Logistics?
Industrial production and its supporting internal logistics typically operate within strict schedules and budgets. Well-planned industrial logistics can help companies respond quickly to customer needs and improve customer satisfaction. Ultimately, it can help companies achieve a competitive advantage in the market.
Industrial logistics is important because it helps companies improve their production processes, leading to better efficiency and cost control.
Industrial logistics manages the flow of goods and materials in industrial production processes. It covers all logistics phases needed from the delivery of raw materials and components to the delivery of finished products. Industrial logistics is an essential part of industrial operations, as it ensures that production processes are efficient and cost-effective.
Industrial logistics includes many different functions, such as inventory management, demand forecasting, supply chain management, transportation, and distribution.
All of this is included in industrial logistics:
- unloading materials from transport units and confirming receipt
- transferring materials to the correct warehouse location
- picking materials and delivering them to the production line
- packaging finished products
- loading finished products for transport
- inventory management
- maintaining stock balances
- transporting semi-finished products between different production points
Here are 5 reasons why it is worth investing in.
Read more about internal logistics services:
1. Cost efficiency
Well-organized logistics helps reduce storage costs, transportation costs, delivery times, and other expenses.
2. Efficiency
Efficient logistics improves companies’ production processes, leading to better efficiency and productivity.
3. Supply reliability
In industry, production processes can be highly dependent on the availability of specific parts or raw materials.
4. Competitiveness
Fast and accurate deliveries improve the company’s reputation and customer satisfaction.
5. Environmental friendliness
Developing logistics can help companies reduce environmental impacts, for example by decreasing the number of transports or using more environmentally friendly transportation methods.
How we operate as a reliable logistics partner in industrial logistics:
Needs Assessment: The first step is to determine what products are to be manufactured, what raw materials are needed, and what transportation and storage needs exist. This helps evaluate what logistics solutions are required.
Supply Chain Planning: Supply chain planning includes planning the flow of goods and materials from raw material procurement to finished product distribution. Planning takes into account the different stages of the supply chain and their interdependencies.
Inventory Management: Inventory management is an important part of industrial logistics planning. Planning considers inventory management strategies, such as warehouse size and location, order quantities and schedules, and demand forecasting.
Transportation and Distribution Planning: Transportation and distribution planning covers the planning of goods transportation and distribution. This includes, for example, choosing the mode of transport, planning transport routes, and determining schedules.
Information Systems Planning: Industrial logistics involves many information systems that can monitor deliveries, inventory management, and other logistics functions. Planning considers what information systems are needed and how they are integrated.
Performance Measurement: Finally, metrics are planned to measure industrial logistics performance. Metrics can include delivery time, inventory turnover, error rate, and costs.
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Diverse cooperation with Sulzer
Sulzer chose HUB logistics as their partner, with the selection criteria being the comprehensiveness of HUB’s services, as HUB logistics was able to implement the necessary functions cost-effectively.
Sulzer has found HUB logistics’ greatest strength to be their ability and commitment to diverse cooperation, where operational development and presenting improvement suggestions have worked well. The quality of packaging and packaging products has improved, and time and expertise have been invested in planning and development.
HUB’s strengths in industrial logistics
We have accumulated experience from different industrial sectors and thus also have a strong customer understanding of the industry and its needs. Based on the knowledge gained through experience, we can form the best service packages for industrial customers.
A development-oriented working approach ensures the long-term development of the client company’s logistics. Everything doesn’t need to, and necessarily can’t, be done at once. It’s essential to systematically invest in development targets one at a time.
“Many companies invest heavily in production development but don’t put effort into the smoothness and efficiency of internal logistics. When internal logistics is outsourced to an experienced professional with resources, the benefits can be leveraged for the advantage of the whole.”
Janne Marttila, Business Director