Optimized Industrial Manufacturing

Industrial logistics involves planning, implementing, and overseeing materials flows from the point of origin through delivery to end users. The process often includes procurement, schedule coordination, transportation, storage, inventory management, and distribution to manage the movement of goods and their arrival in satisfactory condition.

Although the term is sometimes used more broadly, we’re referring to industrial logistics in a way that’s fairly synonymous with manufacturing logistics. This process involves sourcing of raw materials and parts and transporting them along the supply chain, which can include production facilities, packagers, and so forth before arriving at warehousing facilities for inventory management and distribution.

Before any transportation or warehousing can take place, industrial logistics involves the creation of a plan that takes into account supply and demand forecasting and supplier selection for raw materials, parts, and so forth. Then, the transportation process begins as raw materials are physically procured, taken to manufacturers and then packagers as it makes sense for a particular product and process. The finished goods could be then transported to wholesalers or stored in appropriate warehouses where inventory is kept and managed. Upon orders, inventory is shipped, ideally using optimal modes, to final destinations. Industrial logistics can also involve reverse logistics where products are returned or disposed of according to instructions.

Let’s say that your company manufactures and sells widgets that require three different types of raw materials. After creating an overall industrial logistics plan and determining the best sources for each of the materials needed, NXTPoint Logistics would work alongside your company to devise the best schedule to pick up each of the raw materials, get them to your manufacturing location(s), and transporting the finished widgets to your wholesalers of choice or in warehousing. Our expert team can work in your location if that’s best for your situation. As you receive orders for your widgets, we would negotiate the best pricing available in the appropriate transportation modes (air, water, and/or land) for the most efficient and cost-effective final mile delivery. We also offer reverse logistics services and plenty of add-on services.

First, here’s the definition of “manufacturing cycle time”: the total amount of time required to go from raw materials to finished goods. Manufacturing cycle times and supply chain management should intricately intertwine, highlighting the importance of careful planning and scheduling. The ability to source the necessary raw materials and get them to plants on time will play a key role in streamlining the manufacturing process, helping to prevent delays and ensuring an efficient manufacturing cycle time. Then, being prepared to move finished goods, once completed, along the supply chain contributes to your company’s ability to make on-time deliveries and satisfy customers.

Here are four logistics challenges specific to the manufacturing industry.

First, with the fluctuating demand often associated with the manufacturing sector, it can be challenging to forecast demand and appropriately keep the optimal amount of inventory in warehousing. With too little, a company risks not fulfilling the needs of its customers; with too much, they tie up money in inventory that’s not moving. Although external factors clearly play a role in fluctuating demand, professionals can mitigate the impact: through effective planning, warehouse management, and having access to advanced technology that provides real-time insights into supply chain issues and allow companies to make data-driven, agile decisions.

Companies in the manufacturing sector must also deal with evolving regulations, ones that can differ significantly by geography. Although this is also an external factor, having a keen awareness of regulations—current and upcoming ones—and knowing how to expertly navigate them makes a huge difference with staying in compliance.

Challenges can exist when demand rises, especially when it spikes—and it can also be problematic when you need to pull back manufacturing. So, it’s crucial to work with an industrial 3PL company that allows you to smoothly scale up or down in tandem with demand without needing to make volume commitments. NXTPoint provides precisely this type of scalability. Our experts will work alongside your company to create a plan that aligns with business goals, seasonal demand, market trends, and more.

You’ll also want an industrial 3PL company that knows how to plan for and navigate supply chain disruptions whether related to demand, geopolitical problems, bad weather, or something else. We’d be happy to talk with your company about how we address all these challenges.

“3PL” stands for third-party logistics, so manufacturing or industrial 3PL refers to logistics services provided in the industrial sector. Benefits of industrial 3PL are significant as professionals with logistics expertise manage processes, freeing up companies to, instead, focus upon their own core competencies and business growth.

Sources citing the Chartered Institute of Logistics & Transport UK listed the following seven key components of logistics:

• Right products
• Right quantity
• Right condition
• Right place
• Right time
• Right customer
• Right price

This is exactly what you can count on with NXTPoint as your industrial 3PL company. We handle precisely the right products in the appropriate quality for a particular need, managing them with care to preserve their condition and quality. We accurately deliver them, on time, to the appropriate customers and, through our big negotiation power, we get the best pricing. If you’re in need of a manufacturing logistics program personalized for your specific requirements, let’s talk.

When choosing an industrial 3PL partner, experience is key. You don’t want your manufacturing business to serve as a testing ground for a new logistics company or one that doesn’t have experience in manufacturing. NXTPoint leverages our more than one hundred years of logistics expertise as we serve each and every one of our customers—and we also have plenty of manufacturing-specific experience, which is highlighted in this HVAC manufacturer case study.

You’ll also want to ensure that the industrial 3PL company offers the services you need in the geographical areas required. Ones that NXTPoint offer include the following:

• 3PL Warehousing, Distribution, and Fulfillment Services
• Logistics Project Management
• Transportation and Freight Management
• Final Mile Delivery

Our services include both domestic transportation and international freight. Moreover, through our extensive networks of suppliers, when you partner with NXTPoint, it can help your business to expand to new markets.

When choosing your industrial 3PL partner, you’ll want one with time-tested dependability, an ability to negotiate quality rates and lanes, and with today’s advanced technology to allow high levels of visibility into the supply chain’s real-time scenario. NXTPoint checks all those boxes.

To discuss your unique needs with one of our industry experts, please connect with us.

We recognize that every manufacturing company has unique needs, and so we listen carefully to requirements and design a personalized program for each customer. To get started with your process, please contact us online to discuss your needs with one of our expert consultants.