Logistics management is a process that starts at the start of the supply chain up until the ending operations. It is obtaining, manufacturing and distributing goods and products to the customers at the right time to maintain customer satisfaction. Factors such as manufacturing, processing, warehousing, transfer, goods handling and packaging are all integrated into this process. To carry this out, the business requires a network of facilities.
Logistics management contributes largely to supply chain management by managing the efficient flow of goods. A well-organized supply chain can reduce the cost in operations, and efficient logistics management can increase the profit and bring more revenue to your business.
Why is Logistics management important?
The main aim of logistics management is to efficiently move products from their starting point to the completion point and ultimately to the customers. The driving force for logistics management is customer satisfaction and fulfilling their demands while providing the best service. The process of accurate and fast shipping, while maintaining the quality of the product, is important.
In the supply chain, the job of logistics management is to analyze the previous data and track the products in real-time to protect them from any form of disruption. Logistics freight forwarding makes sure that the goods arrive at the right place at the right time.
Logistics management will increase your company’s revenue and improve customer satisfaction. This will impact the company’s reputation and create a good brand image, which in turn creates more business opportunities. By organizing the reverse flow of commodities, keeping inventory optimized, and managing inbound funds, you can save a lot of money during operations.
Different types of logistics management
- Supply Management and logistics
Under this, the transportation and storage of goods is included. The process of planning, obtaining and transfering of goods from one place to another, and delivering them on time is known as supply chain management. Alongside this, analyzing the stages of supply at different stages during the processing is indispensable to fulfill the customers’ demands.
- Distribution and Material Movement
In this process, logistics and freight forwarding companies work together to transport goods and materials wherever they need to be transported in a certain amount of time. The whole process is hectic and includes moving goods, whether it is loading, unloading and transporting while keeping check of the stock and tracking it.
This type of management is responsible for keeping a check on the products right from the movement from the manufacturing warehouse to the final selling store which will sell the product to the customer.
- Production Logistics and Management
The building of the product and combining everything to make one product, comes under product management. Supplies need to be coordinated and fabricated in the production process, and the materials need to be staged at the correct time to build it properly.
- Reverse Logistics and Product Return
It is a reverse process where materials or supplies are reclaimed back from the customers or from production. For example, all the excess material on the construction site will be reclaimed and brought back to the stock to prevent wastage.
It can also include the returning of unused or unwanted goods from the purchasers.
The Distribution network of Logistics Management
- Manufacturing industries which produce the product
The factories that produce the product are the first ones in the whole network. They fabricate the product and send it to the next level.
- Warehouse storages
Now, there are different types of warehouses for storing the manufactured product. Temperature controlled, private, pubic, bonded, etc. For example, cold storage Vancouver warehouses are for materials that need to be stored in cold areas to maintain their quality
- Distribution centers
Distribution centers are big spaces where all the goods are stored in bulk. They receive items from various suppliers in order to start the distribution process.
Transportation involves the transfer of goods in large containers and trailers to the right place. With technological advancement, today we have transport refrigerator services that allows you to transport perishable goods and materials that need to be stored in a cold environment.
- Retail Locations
Here the products are being sent to small, as well as larger stores for selling.
Tips for Smart Logistics Management
Logistics management is not an easy task and requires a lot of planning and efficient management at all stages to see results. By taking care of every level from distribution to the return of goods and materials, you will eventually generate revenue and produce large profits.
The larger the operation, the stronger you must make the whole management process. Here are some tips which will help you with complex logistics management:
- Have a good plan: Always formulate a strong plan before starting anything. Surely there will be failures, but the success of your operation depends on how strong your planning is. The more you plan the less you have to make quick decisions. Yes, there will be unnatural situations sometimes, but good planning can reduce such situations and give you a clear idea of how you want to carry out the process.
- Hire a Manager: Having an experienced leader who knows what he/she is doing is very important, as knowing about the entire process of supply and materials will make the process easier. Interpersonal skills are highly valuable in a manager, and they should have sources and contacts in factories and industries to attain any kind of immediate help needed.
- Automate: Make use of technology. A lot of work can be done faster and easier through a machine as compared to manual work. Today we have machines which increase efficiency right from production to packaging of the products. The more automated your industry is, the less are chances of human error. Big e-commerce giants like are fully automated
Lastly, learn from your errors. You might make mistakes here and there through the managing of the logistics, but what’s important is how you learn from it and don’t let it happen again.
- Posted by admin
- On June 17, 2020