Industrial Engineering

What is Port-Centric Logistics?

What is Port-Centric Logistics?
Supply Chain Digital April 2020
By Sean Galea-Pace
https://www.supplychaindigital.com/logistics/what-port-centric-logistics

Supply Chain Digital takes a look at why port-centric logistics is becoming increasingly popular in the industry.

Port-centric logistics describes the location of logistics and distribution services when goods arrive. It is considered an alternative to inland depots and centrally located national distribution centres. It allows you to store your shipment at the port and decrease the number of handling stages throughout your storage and distribution process, saving time and money.

Port-centric logistics is increasingly being considered as a way for businesses to streamline their supply chains and reduce their impact on the environment. For lots of organisations, port-centric logistics aims to remove unnecessary freight miles.

For example, if goods arrive at a port in the south, then travel to the distribution centre in the north, the goods essentially go back the same way again if they are distributed to a customer based in the south. However, if the goods remain in the port that they arrived in, it will avoid wasted freight miles and mean better results for a company’s bottom line as well as helping the environment too.

In addition to the cost benefits, port-centric logistics can streamline operations and enhance customer service because containers are loaded, checked, stored, picked and distributed from a single location. This will lead to shorter lead times, a more efficient supply chain and cost-effective logistics and distribution.