Introduction
Effective management of the set of activities a company performs can improve its business practices. For any business, availability of materials at the time of requirements is far important than its price. As availability of material ensures continuity of its operations.
Distribution enterprises are large scale structure within which different logistics service providers collaborate in order to offer value-added services by sharing assets. Such hubs impact on the efficiency of the transportation systems since they directly affect the flow of goods.
Logistics hubs affect the distribution in transportation networks since they are flow concentrating structures. Indeed, the most structured way of moving the goods throughout supply chains depends on the design of the network which it follows.
Complications
With changes come challenges to business processes. Managing a delivery-based business comes with its own pack of unique challenges. When it comes to last mile delivery in urban locations.
The location of logistics hubs is also considered to be a strategic and long-term decision, especially due to the large amount of capital invested in it. The choice of site affects the success not only of operational activities itself, but also of supply chain management and transportation network planning, ultimately influencing the distribution system as a whole.
As a result, the optimal location of a logistics hub may lead to reduced transportation costs, promotes synchronization between production and consumption, ensure a balanced development of transportation system.
Explications
Consumers are demanding visibility and speed in an increasingly manner at every stage of delivery. Proper scheduling and instant delivery are the prime needs of the customer. Thus, there is a demand to have a robust delivery management in place. The latest technology enabled logistics systems will result in the following outcomes:
- Improved customer experience
- Electronic POD (Proof of delivery)
- Dynamic rerouting
- Real time ETA estimation.
