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What is micrologistics?

What is micrologistics?

What is micrologistics?

Micrologistics refers to the search for the maximum optimization of internal logistical processes in a company. In fact, it seeks to have all kinds of data that allow decisions to be made in order to improve internal processes. In fact, work is being done to take advantage of the resources intended to generate greater profitability.

Some areas in which micrologistics is traditionally applied are storage, stock control, packaging, shipment management or international transport. Although the benefits are undeniable, implementing such a system requires significant investment in human resources, processes and, especially, technology.

In the field of ecommerce is very useful micrologistics, although, as explained here, most companies in the sector have not implemented a comprehensive strategy on this matter.

Advantages

  • Improved responsiveness as it allows inventory strategies to adapt more to the specific profiles of each market or type of customer.
  • Reduced lead time as it is imperative that companies adopt a strategy capable of placing inventory as close to the customer as possible.
  • Reduced delivery costs.
  • Optimization of the flow path. While distance is a major factor in compliance costs, other aspects such as labor or mode of transportation contribute to improving this flow.

Outsourcing

The concept of micrologistics is often linked to that of outsourcing services. In fact, many companies choose to outsource some of their logistics functions such as transport, storage or associated information management. The grouping of these functions gave rise to the concept of 3PL (third party logistics).

3PL

It refers, in particular, to outsourced logistics services, i.e. those that a company hires from an external company to manage the processes related to the logistics of the commercial organisation.

A 3PL operator provides the logistics functions that allow part of the manufacturer’s supply chain management to be optimised. This frees the manufacturer from having to have its own fleet of vehicles or its own warehouses. Transport is usually the most outsourced logistics activity.





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