As the beating heart of freight shipping, freight logistics can determine the difference between a streamlined delivery and a fragmented one. It entails managing freight loads in an organised, coherent way to stay competitive and ensure customer satisfaction. The intricacies of freight logistics may differ between shippers, but the key fundamentals are crucial to get right.
In this article, we’ll explore all aspects of freight logistics: its definition, its role within the freight shipping landscape, common pitfalls, and how Amazon Freight can help you develop or hone your logistics processes.
What is freight logistics?
Freight and logistics are terms often used interchangeably to refer to freight logistics. However, freight logistics refers specifically to planning, managing, and overseeing freight operations in a cost-effective, sustainable, and streamlined manner. In short, it ensures that freight loads reach their destinations safely, on time, and in an efficient manner. There are three types of freight logistics:
Inbound logistics
Inbound logistics encompasses all the ways in which materials are supplied into a company: ordering, receiving, storing, transporting, and managing incoming deliveries are all components of inbound logistics.
Outbound logistics
Meanwhile, outbound logistics refers to the demand side of the supply-and-demand equation by storing and delivering goods to the end user. Key considerations include warehouse, storage, and inventory management; transportation; delivery; and delivery optimisation.
Reverse logistics
The final form of logistics is reverse logistics, which involves shipments from the customer back to the shipper. For example, products that need to be returned or recycled will move backwards through the supply chain from the end user back to the original destination. This process offers shippers a way to lower their carbon footprints and enhance customer satisfaction.
Understanding the importance of freight logistics
Smooth, reliable shipping processes rely almost entirely on airtight freight logistics—shippers, carriers and customers alike are affected by its role in overall operations. Freight logistics isn’t just about having control over day-to-day processes; it’s also about preventing issues in the supply chain before they arise and being prepared to deal with them if and when they do. Delays or disruptions to freight can be disastrous for businesses, often harming sales and increasing overheads. It’s essential that supply chain managers and logistics professionals have dependable contingency plans in place by investing in freight logistics.
Key components of freight logistics
Freight logistics comprises a number of different aspects of shipping. Logistics managers and supply chain managers must be proficient in each component to build a well rounded logistics plan.
Transportation
Transportation—moving goods from their place of origin to their destination—is the primary pillar of freight. This involves choosing the best route and shipping mode for different loads. Considerations include costs, international customs procedures, tariffs, speed, distance, and any relevant regulations. Logistics can be monitored and managed by handling billing, tracking shipments, and reporting on performance.
Warehousing
Storing goods requires significant logistics planning. How, where, and for how long goods are kept—as well as specific storage requirements—should be front of mind for logistics and supply chain professionals. Products need to be available and in perfect condition as soon as they’re needed.
Inventory management
The freight sector experiences significant peaks and lulls depending on the season. To prepare for these peaks and keep profits high during the lulls, companies should invest in inventory management techniques as part of their overall freight logistics procedures. This involves keeping track of inventory turns and comparing product performance across different stores and regions. Logistics managers can then make decisions about where to move inventory in order to get the best return on investment.
Order fulfilment
Order fulfilment is the process of picking, packaging, and labelling packages before they are shipped to customers and the transaction is considered complete. There are five steps of order fulfilment:
- Incoming goods are shipped to the warehouse from manufacturers or sellers
- The distribution centre receives the inventory
- Short-term storage of goods in a warehouse is arranged
- Orders are processed, picked and packed
- Processed orders are shipped to the end user
Order fulfilment is built upon a combination of freight logistics components. Logistics managers must draw on these other components in order to complete the transaction.
Common challenges in freight logistics
Global geopolitical issues have always posed challenges for the freight industry. Although these issues usually can’t be predicted or minimised, freight logistics managers can help their organisations prepare to meet and overcome these challenges as they arise.
Rising costs
Since 2020, overhead costs for freight providers have been becoming increasingly expensive—particulary fuel prices. Freight logistics managers may consider entering long-term partnerships with providers. Even if this doesn’t bring down immediate costs, forging strong, tactical relationships can often minimise costs if significant issues arise unexpectedly in the future.
Customs regulations
Customs requirements and regulations are constantly evolving. When dealing with international freight, it’s absolutely imperative to stay on top of customs updates. Being non-compliant with customs regulations can disrupt or even derail a shipment entirely. Logistics professionals need to constantly be on top of changes to international shipping regulations and prepare freight processes accordingly.
Supply chain disruptions
Supply chain disruptions are particularly unpredictable and—unfortunately—inevitable in today’s geopolitical landscape. Freight companies should diversify their networks and map out alternate, backup routes to ensure access when regular routes are unavailable.
Amazon Freight’s role in optimising freight logistics and transportation
Here at Amazon Freight, we play a vital role in freight logistics throughout the UK. Our extensive road transport network covers a significant area of the UK, allowing for fast, seamless deliveries throughout the country. We utilise the latest technology in our freight logistics and transportation processes to reduce delays and optimise our operations; using data and real-time tracking enables us to plan the best routes and provide reliable delivery schedules.
We believe in making the freight shipping process as simple as possible for our customers. We partner with leading logistics providers to give our customers peace of mind, connecting quality transportation with logistics managers who can optimise the entire delivery process from warehouse to customer.
Optimise your freight processes with Amazon Freight
Freight logistics is an essential part of the freight shipping industry, keeping deliveries as seamless as possible and mitigating challenges before they arise.
Amazon Freight can help you enhance your transportation efficiency and reliability. Create your shipper account today to get started and receive a quote—or, reach us at freight-uk-interest@amazon.com.
