Logistics Management

 Introduction

                                      Logistics is generally the detailed organisation and implementation of a complex operation. In a general business sense, logistics manages the flow of goods between the point of origin and the point of consumption to the requirements of customers or corporations. The resources managed in logistics may include tangible goods such as materials, equipment and supplies, as well as food and other consumable items. 

                                Logistics management is the part of supply chain management and supply chain engineering 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 point of consumption to meet customers requirements. The complexity of logistics can be modeled, analysed, visualized, and optimized by dedicated simulation software. The minimization of the use of resources is common motivation in all logistics fields. 

Definitions

                     a) According To Council Of Logistics Management; " Logistics is the process of planning, implementing and controlling the efficient, effective flow and storage of goods, services and related information from point of origin to point of consumption for the purpose of conforming the customer requirements."

                     b) According To The Oxford Dictionary defines logistics as, " the practical organisation that is needed to make a complicated plan successful when a lot of people and equipment are involved" or " the business of transporting and delivering goods."  

Scope Of Logistics Management 

                               The scope of logistics management involves Order Processing, Inventory Control, Transportation, Warehousing, Materials Handling and Packaging, all integrated throughout a Network Of Facilities. The goal is to support procurement, manufacturing and customer service operational requirements. 

1) Order Processing

                                     Consumers order processing is the important aspects logistics management. It ensures that all orders are timely processes and performs various operations like receiving, handling and recording of consumers orders. Logistics management process focuses on reducing the lead time in between the order receipt and dispatch of consignment. 

2) Inventory OR Materials Management

                                     Logistics managers manages all the inventories of materials in right way. Proper amount of inventory is maintained at every point of time to provide uninterrupted production and regular supply of goods to consumers. 

3) Transportation 

                                    Transportation is the very important activity of logistics management. It refers to movement of goods within and outside the organisation. It creates timely utility by delivering goods at right time and in right order. Railway, Roadways, Waterways, Airways And Pipelines are major sources of transportation used. Logistics managers choose a right source of transportation by analyzing them in terms of their cost, speed, reliability, safety and number of its locations. 

4) Warehousing

                        Warehousing is a Logistical Operation which aims at creating time utility by safe storage of products from the time in-between production point to consumption point. Warehouse Managers  properly decide number and location of all goods or products storage, which is established by company for storage of products. 

5) Materials Handling 

                              Logistics Management involves proper handling of all materials within organisation such as Raw Materials, Finished Goods, Equipment, Maintenance Spares, Consumable Materials And Semi finished Goods. Materials managers need to ensure that there are no losses arising out of breakage, damages and spoilage, etc. 

6) Packaging And Labeling

                             Packaging And Labeling are very important in logistics management. Packaging involves encasing products in proper packets for its safety and convenient handling. By the way of good packaging materials can safe from damages and spoilage at the time of movement from one place to another place. It makes products attractive and facilitates its sales. Labeling is a process of giving identification makes to product and defines its Packaging And Expiry Date, Ingredients, Price, Weight And Size Of Products. By the way of labeling we can easily segregate and stored the materials in a rack. 

 7) Network Design

                             Network Design is one of the prime function prime function performed by process of logistics management. Logistics manager proper design a network that denotes the Number And Location Of Production Plants, Storage Houses, Equipment For Handling Of Materials, etc. These factors are key determinants of efficiency of logistics and need to be decided with due attention. 

Advantages Of Logistics Management

1) Improved Customers Experience

                                 A great customer experience is driving factor behind repeat sales. By delivering orders accurately and quickly with a streamlined experience, we improve the customer experience which, in turn, increases brand loyalty and potential for future sales. 

2) Preventing Losses

                                  Logistics Management helps prevent loss in several ways. One of the primary ways logistics management prevent loss is through true inventory accounting, So our company knows exactly how much stock it has on hand at any given time. Companies can also track movement and current location so stock won't be misplaced or diverted without notice. 

3) Demand Forecasting

                                  Demand forecasting supports organisations by realistically calculating inventory needs, sates patterns transporting and stocking accordingly. Further, logistics management best practices help organisations scale to fulfill more customer orders on time. 

4) Clear Visibility

                                  Logistics management gives our team greater visibility into the supply chain, allowing us to make informed decisions based on data. This enables businesses to better control costs, locate operational inefficiencies, spot chain problems, conduct demand planning and discover potential opportunities.  

Components Of Logistics Management

a) Intake from suppliers and material handling.

b) Labeling packaging into smaller units, organisation and warehousing

c) Inventory management for production or distribution.

d) Demand planning.

e) Order fulfillment

f) Transportation

g) MIS And Invoicing

Conclusion

                                     Logistics Management is the very important activity of any organisation. It controls the movement of materials from origin to end user. While we doing logistics activity in any organisation , the activities are automatically run - Order Processing, Inventory Management, Transportation, Warehousing, Materials Handling, Packaging and Network Designing. Logistics Management play a vital role in flow of material from production to sales. Logistics Management follows a 7-R rules , while doing the logistics activity. And that are - Right Product, Right Quantity, Right Condition, Right Place, Right Time, Right Customer, Right Price. Logistics Management is essential to the supply chain of a business. It ensures cost -  effective measures and helps to achieve the highest degree of customers satisfaction.