Published on August 4th, 2016 | by Guest0
Role and Function of Logistics Management
In e-commerce, an important aspect is the timely, regular and apposite delivery of the product in accordance to the customers’ desired specifications. For completion of this seemingly arduous task with maximum efficiency and minimum hassles, an effective framework of logistics is integral.
What is logistics management?
According to the Council of Logistics Management, logistics can be defined as “that part of 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”. Logistics Management is an all-inclusive term that encompasses both planning and execution of four key aspects of logistics, i.e. transportation, distribution, warehousing and purchasing. Another pertinent factor that logistics management takes into account is the flow of goods in forward and reverse order.
Role of logistics management
Active since point of origin and going on to the point of consumption, logistics management is a key component of the supply chain process that facilitates the tripod of strategy, planning and implementation thereby reducing cost significantly and enhancing customer satisfaction.
There are 6 key functional areas of logistics management, namely:
- Inventory Planning and Management
- Procurement of Goods and Services
- Packaging and Storage
- Customer service
Efficient logistics management
According to Paul Myerson’s book “Introduction to Supply Chain and Logistics Management Made Easy” there are five tactical characteristics of logistics management – reliability, responsiveness, agility, cost and assets. Hence, there should be greater emphasis on accuracy of data collected. Even though there are innovative and world-class technological processes that are used in logistics, it must be considered that data input is different from information processing. Hence, a lot depends on timely and regular data feeding and updation. The basic information should be based on real-time flow of goods and only then can logistics management be utilized to maximize customer satisfaction and reduce costs.
Another important aspect for stronger supply chain and efficient logistics management and eventually, effective logistics, is that one should think beyond point of consumption. The reverse flow of goods has to be considered while planning for logistics by the distributors, retailers or manufacturers.
Elimination of prospective setbacks by thorough planning
In logistics management, multiple issues may arise due to drawback in a single process. For instance, failed deliveries can lead to customer dissatisfaction or damage of goods leading to incurring of losses. For overcoming such obstacles, planning the processes including risk management is very important. The advantages of planning are:
- Elimination of delays and reduction of losses
- Controlling and managing inbound and outbound flow of goods
- Enhancement of supplier-vendor relationship
- Mobilizing smooth supply chain process
- Maximization of customer satisfaction
Thus, one needs to devote time and resources to planning the steps and ways of logistics management in order to maximize efficiency. Some key aspects of planning are:
- Selection of vendors
- Selection of transportation modes and routes
- Choosing effective delivery mode
- Manage and operate processes through technology and innovation
Reputed logistics solutions companies take into account the complete chain of logistics management. One such company is India’s leading express distribution giant, Gati, that offers total supply chain solutions along with important services after-sales support and reverse logistics.
Thus, logistics management is the key to seamless and integrated supply chain involving efficient flow of various processes, from freight forwarding and inventory management to packaging and delivery of goods, by utilizing information, technology and human resources to attain company’s objectives.