What is an Integrated Logistics Service?

Logistics is the service enabler for all forms of trade and distribution activities and there has been a positive growth over the years. Integrated logistics services (ILS) refers to a company that performs a variety of end-to-end logistics-related service activities like air, ocean, road and rail transportation, warehousing and other value-added services that make up a total logistics services package. There are integrated logistics company in Malaysia that carry out these services. The main activities involved in logistics services are warehousing, transportation, Freight Forwarding and distribution. 

integrated logistics company in Malaysia

What are the Benefits of an Integrated Supply Chain?

It is clear that all companies and businesses must have an integrated supply chain. An integrated supply chain involves strategic product innovations, streamlined transportation systems, a resilient supply chain and agile financial and operational planning are all required in order to create the most value within an organization’s operations, no matter the industry. Now, let us take a look at the benefits and advantages of an integrated supply chain.

1. Increased collaboration and visibility

In an integrated supply chain, it is crucial to link together as many areas as possible to enable strong collaboration with the end goal of reducing costs, waste, production time and response time. Instead of allowing different enterprise functions to operate separately, an integrated supply chain promotes centralization to ensure enterprise-wide visibility. 

integrated logistics company in Malaysia

2. Stay on top of demand

Directly related to increased visibility is the increased ability to stay on top of demand with an integrated supply chain. Without the line of sight an integrated supply chain provides, it would be virtually impossible to balance supply and demand. 

3. Good Flexibility

One of the most important benefits of an integrated supply chain is the increase in flexibility. Houston Chronicle contributor Chirantan Basu noted that by  integrating all of a business’s functions, flexibility can be achieved. 

integrated logistics company in Malaysia

4. Eliminate waste

Maintaining a sustainable supply chain isn’t simple. It is noted that  lean practices help identify  and eliminate waste in the supply chain, and increased agility allows organizations to respond effectively to unpredictability. 

5. Higher profit margins

The previous four benefits roll up into this one. When a supply chain is a well-oiled machine, it’s easier for companies to maintain and even increase their revenue, resulting in higher profit margins. It’s clear now that sustaining an integrated supply chain is critical to business success. However, integrating these disparate concepts is sometimes much easier said than done. For more information, read here