About Logistics Management : A Beginner’s Guide

 

 

About Logistics Management : A Beginner's Guide

 

What Is Logistics Management?

Logistics management is the process of managing the activities that are required to transport goods from its source to the final customer. That process involves a series of logistics activities such as order processing, material handling, packaging, warehousing, transportation and customer service management.

The logistics management process is used for tangible goods such as raw materials, finished products, equipment and machinery to food or other consumable items. A person who works in this field is called a logistician or logistics manager.

Logistics Management vs. Supply Chain Management

Logistics management is a subset of the larger supply chain management. Supply chain management plans, implements and controls the efficient flow of storage, goods, services and related information from the point of origin to the point of consumption. This is done for the purpose of meeting the requirements of customers.

Logistics management in business works across industries. It aims to manage the fruition of project life cycles, supply chains and resultant efficiencies. As businesses grow more complex and expand into a global marketplace, business logisticians have evolved into something called supply chain logisticians.

With logistics management in manufacturing, the focus is twofold: inbound logistics for internal functions and outbound logistics for the external flow from the point of origin to the point of consumption. Logisticians focus on inventory management, purchasing, transportation, warehousing, consultation and the organization and mapping of these processes.

 

 

 

 

 

 

Different Types of Logistics Management

Here's a quick overview of the main types of logistics management, each emphasizing a different aspect of the supply chain management process.

Inbound Logistics Management

Inbound logistics management refers to the logistics activities that are necessary to transport materials, equipment and machinery from a supplier to a production facility.

Production Logistics and Management

Production logistics management manages the transportation of goods during the production process. This involves the staging of materials from production warehouses to the production line at the right time to streamline the production process.

Outbound Logistics Management

Outbound logistics management is the opposite of inbound logistics. It involves the transportation of goods from the production or distribution center to the final customer.

Third-Party Logistics Management

Third-party logistics management refers to the outsourcing of logistics management activities. Third-party logistics management can involve outsourcing inbound or outbound logistic activities.

Supply Management Logistics Management

This involves the planning, procuring and coordinating materials that are needed at a certain time at a particular place for the production of a task. This includes transportation of the materials as well as a place to store them. Additionally, evaluating the level of supply at the different stages of the process is required to ensure the needs of the customer are met, for example delivering materials to a construction site or parts for a manufacturing plant.

Distribution Logistics Management

This takes stored materials and transports them to where they need to go. The issues in this involve moving materials; including loading, unloading and transportation, as well as keeping track of the stock and how it's used. This type of logistics management controls the movement of supplies from a central warehouse to the stores that sell the product to the public.

Customer Service Logistics Management

Customer service logistics management consists of ensuring products are delivered on time and damage-free to ensure customer satisfaction. To do this, organizations use logistics management tools and techniques to track customer interactions along the logistics management process of order processing, handling, transportation and delivery of goods.

Reverse Logistics Management

This is about the management of reclaiming materials and supplies from the customer back to production. For example, reverse logistics management is concerned with the return of unwanted or unused products from the end customer seeking a refund.

 

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