What Is Logistics Management?

Feb 25, 2020 11:28:11 AM
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Logistics and transportation are often used interchangeably. Though it is not entirely wrong, as transportation is one part of it, logistics is a much broader subject. When it comes to logistics management, it covers multiple big and small processes.

Logistics management is a comprehensive process that includes various sub-processes. It involves the management of procurement, storage, and transportation of physical resources. 

This process is only one aspect of supply chain management. However, it involves the planning, implementation, and control of the flow of tangible resources. It includes finished goods, work-in-progress, or raw materials from origination to consumption points.

The main aim of the logistics strategy is to keep customers happy and achieve organizational goals. Strategizing and measuring the success of logistics management can be challenging because it includes many intricate, interdependent, and crucial business functions.

Logistics management drives the integration of data and management tools across the process. This department takes care of product packaging, transportation, and handling materials. Also, it is responsible for warehousing, inventory, and warehouse security.

The whole process might seem scattered and diverse. But, it derives its functionality through its objectives. These objectives are the common thread that binds the various logistics processes together. If you understand these objects, you will get better insights into the logistics management process.

Objectives of Logistics Management

There are five main objectives of the logistics management process:

Minimize Manufacturing Costs

Logistics management can have a direct impact on manufacturing costs. For instance, delay in the pickup or delivery of raw materials can delay production. As a result, it shoots up the manufacturing costs.

Efficient logistics management improves material handling and fastens transportation. It also increases its safety, which in turn reduces the shipping costs of the business. For example, a clear transportation plan with a provision for alternative routes will increase the efficiency of delivery. Hence, a well-planned logistics management process can maximize business profits.

Efficient Flow of Operations

Logistics management enables a smooth flow of manufacturing processes. It ensures timely delivery and optimum utilization of raw materials. To achieve this,  businesses need to optimize communications with other departments.

Logistics management allows a clear flow of information from one department to another.  This is done with solid planning and constant review of the plan. The smooth process flow makes the entire operations efficient. An efficient logistics strategy streamlines a complex network of internal and external processes.

Better Communication Flow

Logistics management engages with many internal business functions and external trading partners. Other departments rely on logistics to get their raw materials or transport their finished goods on time. Also, the logistics staff needs to coordinate with suppliers, vendors, and customers to pick up and deliver goods.

With multiple parties involved, it is challenging to establish a clear communication network. Even one miscommunication can lead to a loss of considerable time, money, and resources. Hence, a seamless communication flow is a crucial objective of logistics management.

Provides Competitive Edge

The primary goal of logistics management is to provide better customer service. Logistics management aims to eliminate processing errors by establishing a streamlined process flow. Process errors occur due to inefficiencies or discrepancies in the procedure. A good logistics strategy will account for all the loopholes in the process and device measures to address them. Thus, it minimizes process errors. For instance, if items are placed haphazardly in the warehouse, finding an item at the time of delivery would be a nightmare. However, if the shelves in warehouses are categorized according to different items, retrieving items would become easy.

Also, it focuses on pacing up the delivery process.  Quality processes and quick service would ensure customers are happy. These measures increase sales, which automatically gives businesses a competitive edge over competitors.

Better Inventory Management

Inventory management is an essential component of logistics management. Inventory management has a direct impact on various business functions. These include financial management, production management, and customer service management.

An efficient logistics solution also makes the inventory management of the company effective. Because inventory is an integral part of the bigger picture of logistics management. One of the critical functions of logistics is to keep the correct levels of stock.

Logistics Management Solution

As you now know, logistics management is a very vast and complicated process. Hence, businesses often use simulation and automation software applications to ease the difficulty of operations. These applications improve the efficiency and decrease the time consumption of the processes. 

Logistics management automation complements other business operations systems like EDI. Automation reduces human errors and increases staff efficiency. For example, a Logistics Mobility solution will include barcode scanning technology, which will help count your stock correctly in real-time. You can access updated information and track the status of inventory to make informed decisions. Adopting technology is the only way you can simplify and optimize your logistics operations.

A few crucial benefits of logistics mobility solution include:

  • Reduced human interference
  • Uninterrupted information flow
  • Automatic and real-time inventory updates
  • Improved accuracy
  • Reduced delivery delays
  • Easy stock adjustments
  • Remote management of multiple warehouses

To-Increase Anywhere Logistics software has helped many companies to streamline their logistics department. Anywhere Logistics simplifies logistics operations, improves productivity, and enhances process accuracy. This solution uses barcodes, which will help you manage your inventory efficiently. You can get complete product information with a single scan. Also, it will help you reduce data discrepancies in the warehouse processes. If your business heavily relies on logistics, embracing automation is the only way to sustain a competitive edge.

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