LOGISTICS MANAGEMENT
Logistics management functions are essential in managing delivery and customer satisfaction. By
ensuring timely order processing, efficient transportation management, and accurate inventory control,
businesses can effectively meet customer requirements, a cornerstone for building trust and loyalty.
The Usefulness of Logistics Management:
When logistics processes are fine-tuned, companies can witness a significant impact on their bottom line
by minimizing waste, optimizing resource-intensive activities, and improving order fulfillment.
1. Securing The Supply Chain Proficiency
Securing supply chain proficiency through adept logistics management leads to a robust system capable
of withstanding various challenges. It ensures that logistics costs are controlled, supply chain strategy is
executed flawlessly, and customer demands are consistently met, contributing to a reliable logistics
system.
2. Managing Delivery And Customer Satisfaction
Logistics management functions are essential in managing delivery and customer satisfaction. By
ensuring timely order processing, efficient transportation management, and accurate inventory control,
businesses can effectively meet customer requirements, a cornerstone for building trust and loyalty.
3. Producing Quality
The quality of the logistics process reflects on the final product that reaches the customer. Logistics
management functions ensure that from inbound to outbound logistics, each step is carried out precisely,
leading to high-quality outcomes that satisfy customer demands and reinforce the brand’s reputation
4 MAJOR LOGISTIC FUNCTIONS:
inventory management
transportation management
order processing
warehouse management
KEY FUNCTIONAL AREAS OF LOGISTICS MANAGEMENT
1.Transportation and Delivery Management
The transportation management aspect of logistics management functions is pivotal in orchestrating
logistics operations. It involves decisions related to the modes of transport, selection of routes, and
management of transportation costs.
It’s not just about moving goods from point A to B; it’s about doing so efficiently, on time, and within
budget. Integrating transportation with other logistics functions, such as inventory control and
warehouse facilities, can reduce costs while maintaining overall delivery effectiveness.
The transportation and delivery management logistics also involve navigating a complex transportation
network that includes regulatory compliance and optimization of shipping costs. With the advent of
supply chain data analytics and monitoring tools, companies now can track shipments in real-time,
allowing for better coordination and transportation management.
2. Warehousing - Storage and warehouse logistics involve strategically placing and organizing goods
within a facility, essential for optimizing space and accessibility. This logistics function ensures that
products are readily available for packing and shipping, directly influencing order fulfillment and
customer satisfaction. Efficient warehouse logistics can also reduce labor costs and improve inventory
turnover, thus being a critical part of logistics management functions.
3. Inventory Management - The primary purpose of inventory management is to ensure there is enough
goods or materials to meet demand without creating overstock, or excess inventory. An effective
inventory management system allows you to react quickly to market demands and fulfill customer
orders on time while ensuring you maintain optimal stock levels. It enables you to strike a balance
between being under and overstocked—both undesirable scenarios.
4. Material Handling - Material handling can improve customer service by making products easy to find,
move, and ship out, cut costs by reducing the amount of time spent moving the productsand reduce
product damages by properly transporting your products. A material handling system should be put
in place to optimize the movement of goods and materials around manufacturing and storage
facilities. A well-designed material handling system can improve customer service, lower costs and
reduce the risk of accidents and damage.
5. Order fulfillment - The order fulfillment process is the steps a business takes from the moment they
have received an order until it is delivered to the customer.
6. logistics network design -A company employs logistics network design to boost its supply chain
efficiency. Here are some of the important objectives of logistics network design:
Decrease the distance driven
Decrease the overall delivery time
Reduce the number of routes used to deliver products
Reduce logistics costs
