A logistics park is an industrial space designed and used by businesses to store goods or inventories. In addition to storage, these parks are designed to systematically carry out logistics processes such as assembling, processing, packaging, and distributing inventories.
Moreover, these industrial units can also be designed to integrate the manufacturing process of the supply chain. Nevertheless, high-security measures have been established in a logistics park to maintain top-notch security and safety.
A logistic park is often used to operate and serve international markets, regional markets, and local markets, with minimal participation from outsourced parties. These industrial units offer great connectivity to seaports, railway stations, national highways, and all major roads.
This way, a logistics park promotes smoothness in transit without adding extra costs to business expenses. Besides, the best part about this industrial unit is that it’s highly customizable based on a company’s unique business needs. Thus, companies can change them over time based on the changes in their business environment.
Primary Functions of Logistics Park
For businesses planning to expand their horizons, a logistics park can help streamline the inventory management and logistics. Some of the primary functions of this park include:
- It provides easy connections to transportation modes such as roads, rails, seaports, airports, and so on. This helps save on transit costs and time.
- Inventory warehousing is an important task for businesses, especially large-cap companies. Logistics park takes care of that in an efficient manner.
- A logistics park can be used to perform more than one supply chain process. For example, light manufacturing can be done in addition to warehousing.
- It also helps with logistics operations such as packaging, product assembly, order processing and re-processing of products, and much more.
- Businesses can reduce logistics costs through a logistics park since the need for third-party service providers is eliminated.
In addition to these functions, the primary goal of a logistics park is to effectively satisfy the warehousing and transportation needs of a business. Instead of hiring third-party logistics to handle them, businesses can take care of these supply chain components themselves.
Design of Logistics Park
A logistics park is generally constructed in an area close to the industrial spaces and manufacturing units so that travel time for warehousing and other operations gets reduced. Moreover, there are also integrated transportation terminals connecting a logistics park and manufacturing units to promote intermodal transport.
All of this is done in a large area where every necessary processing unit can be comfortably installed. A logistics park includes dedicated sections for – inventory storage, packaging, processing and reprocessing, unitization, and all the other required units. Its layout generally differs from business to business, noting everyone has different goals.
Benefits of a Logistics Park
A logistics park is an industrial space designed to promote efficiency in logistics operations of the supply chain. Some of its key benefits include:
- Helps reduce the overall transportation costs as all the major transit modes are easily accessible without longer travel.
- A logistics park is easy to change with the changing business environment and can be comfortably expanded depending upon the need for it.
- It’s the best option for inventory warehousing and distribution, with advanced security systems to maintain the highest levels of safety.
- An efficient way to establish intermodal transportation between manufacturing units and warehousing spaces to boost supply chain efficiency.
- It provides multiple functions apart from just storing and processing the inventories. For example, light manufacturing, order processing, etc.
- Eliminates the need to hire and rely on third-party service providers to handle major logistics operations. It can be done in-house instead.
Importance of Logistics Park in Supply Chain Management
A logistics park is a crucial element in streamlining a business’ overall supply chain. Here are some key points for how these parks help with it:
Fulfillment of Logistics Requirements
Every business has certain logistics requirements, especially large-cap companies. A logistics park fulfills all those requirements and that too under a single roof. It offers large warehousing spaces that can be used for means beyond just logistics.
Eliminates Extra Cost For Supply Chain Management
There are multiple operations in a supply chain, and managing them could be a hassle. Instead of relying on outsourcing these operations for different costs, it can be performed in-house using a logistics park. Since these operations are taken care of in-house, the overall costs of supply chain management can be reduced.
Highly Security
A logistics park is equipped with high-security systems that create a safe storage space for inventories, including those from different companies. Safety measures such as CCTV cameras, fire extinguishers, cyber security software, and security alarms are well in place. Moreover, there are well-trained human resources to handle these security systems, ensuring no security breach.
Final Words
Logistics parks are ideal industrial spaces for businesses looking to elevate efficiency in logistics management. These are spaces that offer highly secured and efficient space for warehousing, transportation, and processing of inventories.
