Internal Logistics: The Perfect Gear for the Supply Chain

A fundamental link in the Supply Chain, internal logistics has undergone an evolution in recent years that has made it a strategic element within companies.

In fact, warehouse management is now increasingly the deciding factor in distinguishing an organized and efficient company from a disorganized one that is always playing catch-up.

How has an activity that is not core to companies (unless we consider logistics operators) become so central?

The Warehouse: From Black Hole to Showcase

Let’s start with a radical change that has occurred over the years in the concept of the warehouse. If it was once an area almost to be hidden, where goods entered, disappeared from the radar, and with some prayers and magic formulas arrived on the production line, today it is a flagship. A source of pride for many companies.

This is because it has been concluded that to achieve good performance for customers and efficient production, one must start from the beginning, which is material management and line feeding. All of this is accompanied by indicators (KPIs) that monitor the health status and level of Supply Chain Management.

Over time, moreover, the type of personnel within warehouses has radically changed, moving from only logistics operators guided by a warehouse manager, to the addition of a team of figures specialized in logistics management, who, in addition to handling daily work, add value to processes.

Elements of Efficient Logistics Management

The evolution of internal logistics management involves some fundamental points that are now indispensable if one wants to stand out from competitors:

• AUTOMATION. To have integrated logistics, both with the rest of the company and with the players that make up the Supply Chain, the warehouse is, perhaps, the part of the company that has invested the most in technology in recent years. Just think of vertical warehouses, regarding goods storage, and the various picking techniques that facilitate the work of operators (e.g., pick/put to light, voice picking, etc.). Fundamental in all this is the traceability of material, which has reached its maximum expression in the WMS (Warehouse Management System), which allows office employees to always have their material under control and logistics operators to act promptly via terminals or tablets.
• LAYOUT AND PROCESSES. Another very important element for organized internal logistics is the study of a functional layout, in parallel with the definition of processes and flows that reduce time waste and maximize the efficiency of internal handling operations. In this regard, the figure of the logistics engineer is increasingly sought after, to design and plan a layout and to conduct a study of times and methods aimed at the warehouse.
• KPIs. Last but not least: surround all activities and improvement projects with performance indicators that are useful and whose compilation does not take an entire week of work. KPIs must clearly and immediately show the state of the art of the warehouse (one above all, the inventory turnover ratio) and can have a pyramidal structure, meaning a few strategic indicators that are articulated into more operational ones and on which targeted focuses can be made.

A New Paradigm of Internal Logistics in the Supply Chain

We can, therefore, affirm that the role of warehouse logistics has risen exponentially within the company’s hierarchies.

Internal logistics today plays an active role in the organization. Unlike some time ago, it is now often the promoter of improvement for the entire company, making processes more efficient.

Furthermore, Supply Chains worldwide are constantly changing, with both internal and external inputs. For this reason, internal logistics must not rest on processes established “recently,” but must continuously be attentive to changes in the wind’s direction. As they say, it must navigate the sea of change.

Finally, to ensure that logistics is central to the company, it is necessary to invest in valid and qualified personnel who can truly make a difference.

Makeitalia in the Supply Chain Field: An Ideal Partner for Optimizing Internal Logistics Processes

As we have seen, excellent logistics management is an integral part of a successful Supply Chain.

At Makeitalia, we also support companies in the management and optimization of logistics, warehouses, and flows.

If you need further information for any business needs, please contact us without obligation through the dedicated page on our website, available at the following link Contacts.

We will be happy to hear your needs and chat with you, in order to evaluate the best solution for your company together.

We also offer a training course dedicated to Internal Logistics, starting next November 2023. You can learn more about the program by clicking here.