Unit 1
Logistics Management – Definitions
The Council of Supply Chain Management Professionals, US, defines logistics management as
‘part of supply chain management that plans, implements, and controls the efficient, effective,
forward and reverse 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’.
Logistic Management: Logistics management is the part of the supply chain process that plans,
implements, and controls the efficient, effective flow and storage of goods, services, and related
information from the point of origin to the point of consumption to meet customer requirements.
“Logistics means the detailed organization and implementation of a complex operation.”
Objectives of Logistics Management
1. Improve Supply Chain Efficiency
Logistics management leads to greater visibility into the supply chain and fastens the inbound
and outbound activities. It is extremely beneficial to reduce the overhead cost and allow delivery
processes within the stipulated time. Managing inventory, storage functionalities, and optimizing
warehouse operations can significantly enable businesses to better control costs and increase the
overall efficiency of operations.
2. Inventory Management
Managing the inventory is an integral part of the smooth running of businesses. Identifying
which and how much stock to order is useful to maintain the inventory levels and satisfy the end
customers. Therefore, inventory management tends to limit the risk of stockouts. Also,
decreasing inventory levels efficiently eliminates unnecessary costs and improves SCM
operations.
, 3. Fulfill customer requirements
The main objective of logistics management is to execute proper planning on transportation
modes and inventory available to satisfy the customers. This leads to a smooth freight moving
process and timely delivery of products or goods. Logistics management allows customers to
stay informed and enhances the overall experience by providing them with relevant information.
Analyzing the customer’s wants is the best way to build the synergic relationship and brand
reputation of an organization.
4. Mitigate product damage (shortcomes)
It is an additional cost to logistical expenses which can be caused due to improper logistical
handling, absence of load unitizing, incorrectly designed packaging, etc. An efficient logistics
management strategy is needed to enable minimum product damage. Therefore, proper
monitoring of all product movements is essential to fulfilling the objectives of logistics
management.
5. Reduce Operational Cost
Embracing logistics management is the best way to drive up revenue and reduce the overall cost
of the supply chain operations. It allows optimum utilization of raw materials and faster delivery
of products which help companies to gain a competitive advantage. However, streamlining a
complex network of operations and management of goods is useful in minimizing the logistics
cost. Controlling and managing the supply chain ecosystem with intelligent route planning can
also enhance business productivity.
6. Quick Response
The main objective of logistics management is customer satisfaction. Solving the customer query
and issues in the shortest time frame is an effective way to enhance the logistics strategy.
Therefore, it plays a crucial role in accomplishing timely delivery. Companies tend to operate
reactively to each order as logistics management provides them with relevant information to
intensify decision-making capability. This leads to rapid response and accuracy in the operation
process.
7. Optimize delivery performance
Providing on-time delivery to the customers is extremely important as it helps to build long-term
relationships with them. Consistency in delivery performance through proper planning and
implementation can save a lot of time and resources. Companies get insights into the real-time
updates and the exact location of the delivery vehicles. Getting control and visibility of the
delivery processes is viable logistics strategy to meet customer expectations better.
8. Efficient Flow of Information
The integral part of logistics management is to strengthen the communication flow of internal
business functions and external partners. Maintaining a clear communication network allows
businesses to become agile and more responsive. One of the major objectives of logistics
management is to facilitate collaboration. Therefore, establishing a seamless communication
flow helps the companies to coordinate with vendors, suppliers, and customers.
Logistics Management – Definitions
The Council of Supply Chain Management Professionals, US, defines logistics management as
‘part of supply chain management that plans, implements, and controls the efficient, effective,
forward and reverse 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’.
Logistic Management: Logistics management is the part of the supply chain process that plans,
implements, and controls the efficient, effective flow and storage of goods, services, and related
information from the point of origin to the point of consumption to meet customer requirements.
“Logistics means the detailed organization and implementation of a complex operation.”
Objectives of Logistics Management
1. Improve Supply Chain Efficiency
Logistics management leads to greater visibility into the supply chain and fastens the inbound
and outbound activities. It is extremely beneficial to reduce the overhead cost and allow delivery
processes within the stipulated time. Managing inventory, storage functionalities, and optimizing
warehouse operations can significantly enable businesses to better control costs and increase the
overall efficiency of operations.
2. Inventory Management
Managing the inventory is an integral part of the smooth running of businesses. Identifying
which and how much stock to order is useful to maintain the inventory levels and satisfy the end
customers. Therefore, inventory management tends to limit the risk of stockouts. Also,
decreasing inventory levels efficiently eliminates unnecessary costs and improves SCM
operations.
, 3. Fulfill customer requirements
The main objective of logistics management is to execute proper planning on transportation
modes and inventory available to satisfy the customers. This leads to a smooth freight moving
process and timely delivery of products or goods. Logistics management allows customers to
stay informed and enhances the overall experience by providing them with relevant information.
Analyzing the customer’s wants is the best way to build the synergic relationship and brand
reputation of an organization.
4. Mitigate product damage (shortcomes)
It is an additional cost to logistical expenses which can be caused due to improper logistical
handling, absence of load unitizing, incorrectly designed packaging, etc. An efficient logistics
management strategy is needed to enable minimum product damage. Therefore, proper
monitoring of all product movements is essential to fulfilling the objectives of logistics
management.
5. Reduce Operational Cost
Embracing logistics management is the best way to drive up revenue and reduce the overall cost
of the supply chain operations. It allows optimum utilization of raw materials and faster delivery
of products which help companies to gain a competitive advantage. However, streamlining a
complex network of operations and management of goods is useful in minimizing the logistics
cost. Controlling and managing the supply chain ecosystem with intelligent route planning can
also enhance business productivity.
6. Quick Response
The main objective of logistics management is customer satisfaction. Solving the customer query
and issues in the shortest time frame is an effective way to enhance the logistics strategy.
Therefore, it plays a crucial role in accomplishing timely delivery. Companies tend to operate
reactively to each order as logistics management provides them with relevant information to
intensify decision-making capability. This leads to rapid response and accuracy in the operation
process.
7. Optimize delivery performance
Providing on-time delivery to the customers is extremely important as it helps to build long-term
relationships with them. Consistency in delivery performance through proper planning and
implementation can save a lot of time and resources. Companies get insights into the real-time
updates and the exact location of the delivery vehicles. Getting control and visibility of the
delivery processes is viable logistics strategy to meet customer expectations better.
8. Efficient Flow of Information
The integral part of logistics management is to strengthen the communication flow of internal
business functions and external partners. Maintaining a clear communication network allows
businesses to become agile and more responsive. One of the major objectives of logistics
management is to facilitate collaboration. Therefore, establishing a seamless communication
flow helps the companies to coordinate with vendors, suppliers, and customers.
