Logistics Management

Foundation of Logistics Management

Customers often expect their products to be delivered according to their specifications. Carryingout this task with minimum delays and maximum efficiency requires effective logistics. The Council of Logistics Management defines logistics as “that part of 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”. Logistics Management includes harmonious planning and execution of transportation, distribution, warehousing and purchasing; in forward and reverse flow.

Gati, India’s pioneer in express distribution and logistics management, offers complete supply chain solutions comprising core logistical activities and value-added services such as freight forwarding, customs clearance, inventory management, import/export management, packaging and labeling, distribution, assembly/installation, after sales support and reverse logistics among other services.

For effective logistics solutions, it is pertinent to consider two important factors, namely: Accuracy of information – B2B transactions usually rely a lot on technology. However, for

maximizing customer satisfaction, reducing costs and manage inflow and outflow of goods more effectively, the information regarding real-time deliveries and inventory levels updation should be timely and regular.

Reverse flow of goods or services or information – Logistics management doesn’t end at point of consumption. At times, the distributors, manufacturers and retailers have to manage goods that are returned by the customers. This aspect is also undertaken by the logistics solution provider.

Some other key functions associated with logistics management are:

Planning and management of inventory Warehousing and transportation Source or procure goods or services Equipment for packaging and storing materials as per the specific requirement of the

commodity Supply chain network Customer service and demand forecasting

Paul Myerson, in his book “Introduction to Supply Chain and Logistics Management Made Easy” enlists five strategic attributes as reliability, responsiveness, agility, cost and assets.

Source: McGraw-Hill Companies / Integrating Supply Chain and Logistics Management

Effective logistics solutions stand on a tripod of basic factors, namely:

Planning processes and eliminating any delays in the supply chain Strong supply chain network with vendors and suppliers Forecast what, where, how and when material is to be supplied for smooth chain

flow

Thus, in order to win the trust of customers, logistics providers should focus on efficiently operating and specializing in all the functions of supply chain, be it sourcing, inbound & outbound logistics, supplier tracking, production, warehousing, scheduling & planning or information management.