How to Use Logistics to Stay Ahead of the Competition?

What is corporate logistics management?

Logistics management is a term that includes the tasks of planning, storing, and transporting goods in order to secure their final distribution. This process includes the steps from the time the company obtains the raw materials to manufacture the goods (or things sent from suppliers) to the time the orders are distributed.

Different departments in a business are involved in logistics. Its position in the organizational hierarchy varies based on the type of firm and the strategic importance of the supply chain. Logistics might be outsourced, integrated into the sales department, or a separate department that interacts with production.

Logistics management includes a variety of functions, depending on the demands of each company, such as warehouse design, storage, order preparation optimization, selection of appropriate handling equipment, and inventory control, among others.

Supply chain managers, who provide the necessary means for the coordination of goods movements, stock managers, who control the state of the products in the warehouse, operations managers, who ensure the optimal organization of logistics processes, and warehouse managers, who organize the daily operations of the logistics facility are a few of the professional profiles associated with logistics management. The role of the supply chain manager is critical in companies with a complicated supply chain to coordinate activities and maintain an effective logistics strategy.

The different areas of logistics management

There are various types of logistics, as well as various disciplines of logistics management focused on specific stages of the supply chain:

Logistics Supply Chain Management

It entails planning the processes required to complete the distribution of commodities under agreed-upon conditions. In a food industry, for example, supply logistics management ensures that products are stored and transported at the optimal temperature and under the conditions required to keep their quality.

Goods distribution logistics management

The goal of this stage of the supply chain is to maximize commodities distribution. Sorting the products to be put onto the delivery truck, establishing the transport route, and unloading the vehicle at the destination are all part of the shipping process.

Management of Manufacturing Logistics

Raw material supplies must be planned in advance for product manufacture. To do this, all processes must be monitored, and the warehouse and production lines must be perfectly coordinated.

Reverse logistics and returns management

This sort of logistics management is concerned with the organization of vendor or manufacturer returns. The goal of reverse logistics is to recover the value of a commodity or appropriately dispose of it.

Management of international logistics.

Logistics management in multinational corporations comprises the activities of transporting goods from one country to another. This process necessitates meticulous planning to ensure that international commodities movements are carried out securely and without mishap.

Successful logistics management is based on advanced control of all processes that make up the supply chain, which results in greater customer satisfaction and, consequently, an improvement in the company's reputation.

Logistics Management Indicators

Effective logistics management involves an in-depth examination of all supply chain operations. Companies monitor all of their operations using logistics management performance indicators.

These measures, also known as key performance indicators, assess logistics performance by analyzing procedures such as receiving, storing, inventorying, and delivering items. Companies can use this information to uncover operational inefficiencies, evaluate the company's competitiveness, search for ways to reduce time spent on operations, enhance resource utilization, and lower management costs. Companies are resorting to technology to measure the performance indicators of logistics management.

The added value of logistics management

Customers' perceptions of a company's products and services help it distinguish itself from competition. Companies benefit from logistics management because it helps them to cut expenses (a factor that has a direct impact on the selling price) and time spent completing orders.

Companies must maintain control over all supply chain operations in order to achieve order delivery deadlines and enhance customer satisfaction. To accomplish this, it is ideal to have technology that enables total visibility of the warehouse's status.