What Is Logistics Management and Why Is It Important?

As shipment volume raise and shipping becomes more complex, the need for strong logistics management increases. Logistics management is a primary reason in the accomplishment of any organization’s operation and has a straight impact on its foundation line. In addition, meeting consumer demand and providing better-quality service is one of the objectives of a superior logistics management.

What is Logistics Management?

According to the classification of The Council of Supply Chain Management (SCM), “logistics administration is a component of supply chain management that plans, implements, and controls the well-organized flow and storage of goods & services, and interrelated information in order to meet up consumer’s requirements”.

Fundamentally, logistics management is the control and supervision of the movement of goods. However, the scope of managed processes reaches far more than that. It occupies a large number of different factors together with transportation management, materials handling, freight and inventory management, and order accomplishment.

How Logistics Management Can Benefit You?

Increased customer satisfaction

Consumers demand better service, and this mandate creates a need for shippers to provide fast, accurate and quality service. Good quality management approach is aimed to continuously optimize transportation processes and remove interruptions. Thus, it has a direct effect on your customers’ happiness. Better customer service can convey a good status to a company’s brand and help out to create more business. The smoother the shipment moving processes are inside and outside your corporation means that you will offer more value to your customers. Finally, well-handled logistics adds to the overall helpful client’s experience.

Visibility and insight Cost Savings

It is essential to create visibility into an organization’s supply chain. Advanced transportation management systems (TMS) evaluate old data and track the present movement of goods within and outside of an industry. Logistics administrators can use this info for route optimization and escaping possible interruptions. TMS data study keeps a corporation’s supply chain moving more proficiently, all while gaining functioning insight.

Cost Savings

Handling logistics on an accurate level will give a firm control over inbound cargo, keep inventory at optimum levels, establish the opposite flow of goods, and utilize shipment transfers on the appropriate shipping modes – every one of which can cut costs extensively.

Key Logistics Management Goals

Essentially, before turning to external help and investing in management technology, you want to make sure it will bring beneficial results. That’s why it is important to know how to measure the effectiveness of any new practices.

·         Increase revenue

·         Improve operating cost structure

·         Reduce overall transportation costs

·         Improve customer service

Many companies look to third-party logistics providers (3PL’s) for help as this simple concept can often become very complex and not so easy to execute. 3PL’s have the expertise and advanced technology to cut costs and improve processes much more efficiently than companies can in-house.

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