For large businesses, and particularly for logistics enterprises, logistics management is crucial. Utilizing the fundamentals of management science, logistics management maintains inventory. In this manner, the company’s product delivery will continue to be efficient and seamless from upstream to downstream. Every business, enterprise, or organization needs effective logistics management. To use goods and services as efficiently as possible, logistics management is a task in and of itself.
Activities linked to shipping, transportation, storage, and excursions fall under the category of logistics. Having a dependable expedition service is another aspect of management that must be taken into account, as with the appropriate choice, the distribution chain will flow smoothly, allowing the manufactured goods to reach consumers.
The following is an explanation of logistics management provided by professionals, along with information on its objectives, functions, and other elements.
Learning Logistics Management from the Professionals
According to Abbas (2012), logistics management is a set of functional tasks that are used to manage materials. These tasks include budgeting, planning, purchasing, storing and distributing, maintaining, eliminating, and controlling.
According to Siahaya (2012), logistics management is a component of supply chain management, which effectively and efficiently plans, executes, and regulates the flow of goods, including transportation, storage, distribution, and services as well as associated information from the place of origin of goods to delivery to the point of consumption to meet customer needs.
Planning, implementing, and controlling the flow of goods, services, and related information storage from the point of origin to the point of consumption) in order to satisfy consumer needs is the responsibility of the Council of Logistics Management (CLM) (Febriawati, 2013).
Bowersox (1996) defined logistics management as a business activity involving place, infrastructure, transit, stock, communication, management, and storage.
Fundamentals of a logistics management system
The logistics management system is capable of supporting the system on its own. It is anticipated that this logistics management system will be able to unify logistics operations within an organization. The monitored management of diverse company-wide activities is typically referred to as a logistics management system. There are integrated laws and data based on the experience of logistical activities to provide a benchmark for the logistics management system.
Speaking of the science of logistics management is what is meant by the fundamentals of logistics. This logistics management science examines the effective flow of money, goods, energy, information, and other resources from source to destination, from the acquisition, storage, supply, and transportation of the goods or raw materials to their packaging.
Of course, learning about factory operations and management, figuring out logistics prices, logistics business systems, and logistics information systems are all part of the logistics management curriculum.
Logistics Operations
The logistics activities that support the logistics management process are included in the logistics management component. These activities start with the processing of the outcomes of the logistics inputs (natural resources, human resources, and financial resources) and end with the creation of the products required to satisfy customer demands, or what is known as the logistics output.
Goals for Logistics and Management
The basic goal of logistics management is to make sure that the products or materials required for manufacturing procedures or operational activities can be obtained in sufficient quantities and with the highest possible quality at the lowest possible price. Additionally, logistics management keeps an eye on how products are delivered, from packing to consumers. As stated by Lumenta (1990), there are 3 objectives of logistics management, namely: 1. operational objectives, namely the availability of goods and materials in the right quantity and quality at the time required. 2. Financial objectives, namely the implementation of operational objectives at the lowest possible cost with optimal results, 3. The purpose of security is to ensure that inventory is not disturbed by damage, waste, unauthorized use, theft, and other improper depreciation, and
The Advantages of Logistics Management
Understanding the aspects of the logistics sector and the advantages that it can bring can be extremely insightful to your organization. Logistics has a series of advantages, which include the following:
- Enhanced Distribution Network – When having a good logistics system, with different logistics operators, you are able to optimize the times along with the distribution chain. There are a variety of companies out there that are available to take care of your logistics needs at a national and international level.
- Costs Reduction – Due to automated facilities and other globalized distribution systems, transport cost and handling costs are able to be reduced. A more efficient logistics chain will improve both final customer satisfaction and the service.
- Delivery Fulfilment – Delivery fulfilment is extremely important to modern-day customers. In an era of instant-gratification, consumers are looking for their product the second they push the “buy” button. Through adequate logistical processes, delivery times have been greatly reduced as compared to a few years ago.
various source
