!!! A LOGIC IN THE LOGISTICS !!!

Definition

Logistics management is the governance of supply chain management functions that helps organizations plan, manage and implement processes to move and store goods. Logistics management activities typically include inbound and outbound transportation management, warehousing, materials handling, order fulfilment, logistics network design, inventory control, supply/demand planning and management of third-party logistics services providers.

The simplest way to describe logistics is to say that it is all about ways and means of meeting the demand for materials i.e., satisfying the customer with what he wants, when he wants, where he wants etc.

Logic In Logistics 

Logic is defined as a proper or reasonable way of thinking about something, sound reasoning. Both logic and logistic derived from Greek word “logos” meaning “reason”.

Do Logistic management is a proper way of thinking ?

Logistics is one of the areas of the supply chain, growing at a tremendous case as the Internet and E-Commerce, is drastically changing the range, delivery time and the speed of information as well as ordering and payment process. All the other management areas are done logically, but Logistic management has to be done logically and carefully because it not only checks the overall operations of a company but also ensures whether the product/services are reaching to its ultimate customers/consumers.

It Ensures in following ways:-

1.    Right Product

2.    Right Quantity and Quality of a product

3.    Right product to the Right customer

4.    At Right time

5.    At Right place

6.    Right condition

7.    At a Reasonable price

Logistic Management as multiple roles and functions. It helps in the enhancement of overall growth of operations, executing technology advancement, storing of goods, transporting of goods and services to its final customer/consumer. Following roles and functions are done by a logistic manager:-

1.  Supply Chain control – A successful supply chain helps to boost the business value. The companies can gain an advantage over its competent, as it is the major component of business operations. Logistic manager deals with numerous aspects of supply chain and monitors these networks regularly.

2.  Quality control – a product’s quality is not at its best, cannot fulfil the customer’s need, it will affect company in a negative way. Logistic manager ensures the quality and even quantity of a product which is an important role as it reaches to the customer.

3.  Cost control – Logistic manager ensures in the optimum utilization of resources, controls cost, and fulfils the customer’s need. An efficient logistics management can analyse historical data and provide route optimization to increase efficiency and reduce costs.

4.  Warehousing Control - Warehousing refers to storing goods or raw materials in a warehouse. Logistic manager ensures the control in warehousing by controlling inventories and others as warehousing’s presence and capacity determines the efficiency of logistic operations.

5.  Transportation Control – delivering the goods to its ultimate customer is another challenging task. Making the product available top the customer at right place, at right time, needs a logical solution. Logistics manager ensures that too. They choose the best distribution channel, to reach out its customers, and keep a track on the movement of products from warehouse to the customer.

6.  Forecasting Demand -    is the process of analysing, evaluating, and forecasting the demand for goods to ensure availability of products and goods that customers want to buy. Logistic keep an eye on the change in the market, demand of the product, and take a step accordingly. Therefore, forecasting models help businesses to make informed decisions by predicting customer demands and fulfilling the orders in the shortest time span. Therefore, the use of modern technology with advanced analytics and powerful databases can take your organization to the next leap.

Logistics Management has a significant and thinkable role in the business. To balance the business operations and to maintain the relationship with the customers, by making products available in the market, one needs a thinkable mindset. Therefore, a logistic manager must develop the skills and need to think and work logically to survive in the competition and to continue with his position.