Logistics Management
Logistics Management
It is obvious that every organisation tries to keep the cost of transporting materials as low as possible. At the same time, they want safe and reliable delivery of materials.
Does the logistics management same as supply chain management?
Supply chain management is an extension of logistics management. However, there is a difference between them.
Logistical activities typically include management of inbound and outbound goods, transportation, warehousing, handling of material, fulfillment of orders, inventory management, supply/demand planning.
On the other hand, supply chain management it is a tool of business transformation and involves delivering the right product at the right time to the right place and at the right price.
It reduces costs of logistics to the organization and enhances customer service.
What is logistics management?
Management of logistics is a component of supply chain management that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination.
It ensures that the right materials are available at the right place, at the right time, of the right quality, and at the right cost.
Supply chain management helps in logistics and assist in having constant contact with its distribution team, which might be any mode of transportation.
The continuous changes in elements of supply chain affect logistics operations such as emerging technologies and industry initiatives, developing and using a formal logistics strategy is very important.
For the formulation of logistics strategy, you have to find the answers to the following questions.
Which sources of raw materials and components are available?
How many manufacturing locations are there?
What products are being made at each manufacturing location?
What modes of transportation should be used for various products?
What is the nature of distribution facilities?
What is the nature of materials handling equipment possessed? Is it ideal?
What is the method for deploying inventory in the logistics network?
Should the business organization own the transport vehicles?
Improvement in logistics can results in savings in cost of doing business. These savings can also reveal in the profits of the company.
What are the advantages of logistics management?
There are a lot of advantages that an organisation can grab through the effective management of logistics. The main advantages of logistics management are as follows.
Cost savings
Reduced inventory
Improved delivery time
Improve customer satisfaction
Competitive advantage
If you have any queries, please feel free to comment.
Thank You.
