Unit 1 Logistics Management Definitions The Council of Supply Chain Management Professionals US defines logistics management as part of supply chain management 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 the point of consumption in order to meet customers requirements Logistic Management Logistics management is the part of the supply chain process that plans implements and controls the efficient effective flow and storage of goods services and related information from the point of origin to the point of consumption to meet customer requirements Logistics means the detailed organization and implementation of a complex operation Objectives of Logistics Management 1 Improve Supply Chain Efficiency Logistics management leads to greater visibility into the supply chain and fastens the inbound and outbound activities It is extremely beneficial to reduce the overhead cost and allow delivery processes within the stipulated time Managing inventory storage functionalities and optimizing warehouse operations can significantly enable businesses to better control costs and increase the overall efficiency of operations 2 Inventory Management Managing the inventory is an integral part of the smooth running of businesses Identifying which and how much stock to order is useful to maintain the inventory levels and satisfy the end customers Therefore the risk of stockouts Also decreasing inventory levels efficiently eliminates unnecessary costs and improves SCM operations inventory management tends to limit 3 Fulfill customer requirements The main objective of logistics management is to execute proper planning on transportation modes and inventory available to satisfy the customers This leads to a smooth freight moving process and timely delivery of products or goods Logistics management allows customers to stay informed and enhances the overall experience by providing them with relevant information Analyzing the customer s wants is the best way to build the synergic relationship and brand reputation of an organization 4 Mitigate product damage shortcomes It is an additional cost to logistical expenses which can be caused due to improper logistical handling absence of load unitizing incorrectly designed packaging etc An efficient logistics management strategy is needed to enable minimum product damage Therefore proper monitoring of all product movements is essential to fulfilling the objectives of logistics management 5 Reduce Operational Cost Embracing logistics management is the best way to drive up revenue and reduce the overall cost of the supply chain operations It allows optimum utilization of raw materials and faster delivery of products which help companies to gain a competitive advantage However streamlining a complex network of operations and management of goods is useful in minimizing the logistics cost Controlling and managing the supply chain ecosystem with intelligent route planning can also enhance business productivity 6 Quick Response The main objective of logistics management is customer satisfaction Solving the customer query and issues in the shortest time frame is an effective way to enhance the logistics strategy Therefore it plays a crucial role in accomplishing timely delivery Companies tend to operate reactively to each order as logistics management provides them with relevant information to intensify decision making capability This leads to rapid response and accuracy in the operation process 7 Optimize delivery performance Providing on time delivery to the customers is extremely important as it helps to build long term relationships with them Consistency in delivery performance through proper planning and implementation can save a lot of time and resources Companies get insights into the real time updates and the exact location of the delivery vehicles Getting control and visibility of the delivery processes is viable logistics strategy to meet customer expectations better 8 Efficient Flow of Information The integral part of logistics management is to strengthen the communication flow of internal business functions and external partners Maintaining a clear communication network allows businesses to become agile and more responsive One of the major objectives of logistics management is to facilitate collaboration Therefore establishing a seamless communication flow helps the companies to coordinate with vendors suppliers and customers 9 Quality Assurance The quality should be maintained throughout all facets of the logistics industry Companies should take thoughtful efforts and always perform activities out of a supervisor s vision Monitoring the quality of overall logistics operations by utilizing new age technologies can improve business growth Quality assurance is considered to be one of the major aspects of the objectives of logistics management 10 Reduce Carbon Footprint A reliable logistic system tends to introduce new age technologies for reducing carbon emissions Undoubtedly the transportation industry is considered to be the major reason for creating a negative impact on the environment as vehicles emit polluting gases The objective of logistics management is to take measures for optimizing routes automation in workflow and so on which help in setting a benchmark in green and sustainable logistics Types of Logistics Logistics Logistics Fields Logistics can be split into five types by field procurement logistics production logistics sales logistics recovery logistics and recycling logistics Each of these is explained in detail but first we should learn about logistics fields and types For recovery logistics and recycling logistics both types are the same up to the recovery of goods from consumers but recycling logistics is the type that recycles the goods that are collected Procurement Logistics Procuring Raw Materials and Parts Procurement logistics is the flow of goods when the raw materials and parts necessary for manufacturing are procured from suppliers This field did not attract much attention before but now that small lot production of a variety of models is the main type of production many firms are actively pursuing production by procuring the necessary materials in only the necessary amounts at the necessary times the shift to just in time production because it is directly connected to reducing inventory costs Production