What is Logistics Management?
The word logistics refers to the overall process of managing how resources are acquired, stored, and transported to their final destination. It plays a significant role in the smooth running of a company’s business operations.
Logistics management involves identifying prospective distributors and suppliers and determining their effectiveness and accessibility.
So Logistics management is the process of meeting the needs and wants of customers by planning, implementing, and controlling the storage and moving the goods/services from the storage facility to their final destination. It’s one of the main components of supply chain management, and it helps businesses and companies to amplify customer service and lower expenses.
In other words, we can say that logistics management is the process of managing various functions of the supply chain by planning, implementing, controlling, and managing goods/services from storage to the required/expected destination.
It Consists of the Following Activities:
*Transportation
*Fleet management
*Warehousing
*Material handling
*Fulfilling orders
*Design of the logistics network
*Controlling inventory
*Planning of supply and demand
*Managing 3rd party logistics service providers
Main Functions of Logistics Management:
*Customer service
*Procurement and sourcing
*Scheduling and production planning
*Packaging
*Assembling
Processes of Logistics Management:
It comprises of two main processes; Inbound and Outbound logistics traffic.
Inbound logistics is when you move products/services from the suppliers to the company’s warehouse and storage unit, then move them to the manufacturing/production facility for finishing. These can be supplies, office equipment, component parts, tools, and raw materials.
Outbound logistics is when you move the finished/final products from the companies inventory/warehousing unit, and ship them to the end customers.
For example, the inbound logistics for a computer manufacturing company comprises of molded casings, connectors, shipping cartons, cables, computer chips, and electronic parts. Then the outbound logistics are the associated peripheral devices and finished ready for sale computers.
Therefore, logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.
Logistics Management plays a significant role in running a company’s daily operations.
