What is Logistics Management? Definition & Importance in Supply Chain
What is Logistics Management? Definition & Importance in Supply Chain
Logistics management activities include:
- Transportation: The movement of goods from one location to another, using a variety of modes of transportation, such as truck, rail, air, and ship.
- Warehousing: The storage of goods in warehouses, where they can be sorted, processed, and prepared for shipment.
- Inventory management: The tracking of inventory levels and ensuring that the right amount of goods is in the right place at the right time.
- Order fulfillment: The process of picking, packing, and shipping orders to customers.
- Returns management: The process of handling and processing returned goods.
Logistics management is important in the supply chain because it ensures that goods are delivered to customers in a timely and efficient manner. This is critical for meeting customer expectations and maintaining a competitive advantage.
Here are some of the key benefits of effective logistics management:
- Reduced costs: Logistics management can help to reduce costs by optimizing transportation routes, warehousing operations, and inventory levels.
- Improved customer service: Effective logistics management can help to improve customer service by ensuring that orders are delivered on time and in full.
- Increased flexibility: Logistics management can help to increase flexibility by making it easier to respond to changes in demand or supply.
- Reduced risk: Logistics management can help to reduce risk by mitigating disruptions to the supply chain.
Overall, logistics management is an essential component of supply chain management. By effectively managing the flow of goods and information, businesses can improve their efficiency, reduce costs, and improve customer service.
Logistics Quotes
- “Leaders win through logistics. Vision, sure. Strategy, yes. But when you go to war, you need to have both toilet paper and bullets at the right place at the right time. In other words, you must win through superior logistics.” ~Tom Peters
- “All we are doing is looking at the time line, from the moment the customer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes.” ~ Taiichi Ohno,father of Toyota Production System (TPS)
- “Supply chains are everywhere. From the biggest company in the world to running your household. We all have supply chain experience even if we don’t know it.” ~Dave Waters
- “Every breakthrough business idea begins with solving a common problem. The bigger the problem, the bigger the opportunity. I discovered a big one when I took apart an IBM PC. I made two interesting discoveries: The components were all manufactured by other companies, and the system that retailed for $3,000 cost about $600 in parts.” ~Michael Dell
“You will not find it difficult to prove that battles, campaigns, and even wars have been won or lost primarily because of logistics.” ~Dwight D. Eisenhower
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