Logistics nodes are the important physical sites where the product is stored and distributed in its various stages of production, be it distribution centers, urban hubs or, at a wider and international scope, ports and airports. Understanding their role in skateholder relationships and their efficiency in economies of scale is key to optimizing logistics nodes to the next level.

If you want to learn more about the characteristics about the importance of logistics nodes, read on:

From less to more complex

When talking about logistics nodes, it is common to mention the larger and more complex nodes that operate internationally. However, there are also simpler nodes with fewer locations that operate nationally or even in a single region.

Logistics nodes are classified by the levels they have in the supply chain. If a node consists of suppliers transporting directly to customers, it is a single-tier logistics node. On the other hand, if there are already logistics centers and distribution hubs in between, it is already considered a three-tier logistics network. Large companies are usually thought of as having multi-level networks; however, supermarket chains such as Walmart opt for single location distribution rather than multi-node.

Il più vicino possibile ai nodi logistici chiave

It is known that the most relevant logistic nodes are located in the ports and the most important airports of each country, for example in the case of Spain, the port and airport of Barcelona and the airport of Madrid, among others. However, at the international level, particularly in Europe, there is an optimal area for distribution centers called "blue banana" because of its shape and because they are located in the center of the European economy and many markets can be accessed in a short period of time.

Whether operating nationally or internationally, the most likely scenario in a long supply chain is that most of them will have one or more distribution centers near a port or airport. You should also take into account their geographical location, such as logistics centers in Madrid because they are located in the center of Spain and offer better distribution within the peninsula.

Persistent over time or seasonal

Not all logistics nodes operate in the same way for an entire year, a factor that is due to the seasonality of various products that circulate through them. These can be either goods intended for the summer or items intended to be stored until use, such as spare tools and machinery.

A good example of seasonality is food grown and/or processed seasonally or months in advance of final demand. Therefore, the logistic nodes of the first phases would already be in operation before reaching the final nodes, such as the last mile.

As economical as possible

After all, the main objective of a good supply chain is to deliver maximum value at the lowest possible cost. Whether it is changing raw material suppliers to obtain them for a low price or going to other logistics centers located in a more strategic location.

However, just as the logistics nodes are changed, the connections or links between them are also changed, so the routes to be followed by the fleet from this point on must be reorganized. An automated route optimizer assists in the planning of the new routes, taking into account the entire logistics network in which it currently operates.

Conclusion

Once the above points are known, it is evident that logistics nodes play a very important role in the logistics chain. However, there are several characteristics to take into consideration that are not easy to manage, but if they are optimized to be closer and more economical, a solid and efficient supply chain will be created.

At Hedyla, we cover solutions for various stages of the supply chain in order to have these processes well controlled and defined.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com

However, these operations are often not optimized. Therefore, the quality of service to customers deteriorates considerably due to delays, reduced shelf life of perishable products, having a product out of stock for a prolonged period of time, among others.

For ways to get the most out of your logistics infrastructure, take a look at the following points:

Design distribution strategies

The company may already have its own distribution strategies for its own network of logistics nodes. However, given the constant changes that can affect all logistics, it may be necessary to update them according to current demands.

Para ello, recopilar la mayor cantidad de datos posibles es esencial para conocer los siguientes pasos que se tienen que dar. De esta manera, se pueden diseñar estrategias eficientes para cubrir las necesidades de la mercancía y la distribución.

Define management indicators

As it is often mentioned, the performance of an activity cannot be evaluated if we do not have key indicators assigned. In the management of a logistics infrastructure, this is no exception and KPIs must also be assigned in all operations to have their monitoring at hand.

It not only serves to measure the performance of merchandise management. It is also very useful for keeping logistics node costs and customer satisfaction in check, especially in the event of complaints and problems with products.

Perform inspection of the infrastructure

The inspection and maintenance of the infrastructure of the logistics nodes is essential both for the safety of the personnel and for the guarantee of the goods. Otherwise it can cause serious accidents in both situations.

Entre los elementos de un almacén que hay que prestar especial atención son los estantes. Según la normativa española, la inspection of racks is mandatory and it is for this reason that you must be attentive to perform such inspections and record them so that the labor authority can review it. In addition, failures can be predicted so that they can be properly maintained in advance and mishaps can be avoided.

Automate processes

One of the most efficient ways to overcome the logistical challenges facing the industry today is to automate those processes. This is to meet challenges such as peak demand and lack of automated personnel.

Among the tasks that can be easily optimized are the more monotonous and repetitive tasks such as moving boxes between the warehouse using stacker cranes. In this way, more time and costs are saved and staff can focus on other jobs that require soft skills such as problem solving.

Training personnel in technological changes

As the warehouse is upgraded in either automated processes or warehouse management software upgrades, so must the skills of the personnel managing those programs. For this reason, it is appropriate to find a niche to implement these technologies and train staff to minimize workflow disruption.

However, the software or the adapted machinery may be too complex for the current employees. Therefore, it may be time to hire workers more specialized in the latest technology applied to logistics in order to train the rest of the staff and adapt to the new way of working.

Conclusion

Just as in many cases the search for ways to manage transportation efficiently must also be taken into account in the management of logistics hubs, i.e. the logistics centers themselves.

At Hedyla, we are attentive to improve and optimize the most important logistics operations, so the supply chain simulator software can be your greatest ally to get the most out of your logistics nodes.

Meritxell Vázquez

SEO & Inbound Marketing
Video Game Design and Production graduate currently training in Digital Marketing with a focus on SEO and Inbound Marketing.

Creating articles of value and supporting communication to the technology sector.

hedyla.com