Importance Of Logistics Management 6n1m5

Why is Logistics Management Important? Posted by PLS Logistics on October 27, 2015 at 8:30 AM Logistics management is a part of supply chain management; it plans, implements and controls the flow and storage of goods and services in order to meet customer’s requirements. Logistics management is a basic factor in the success of any company’s operations and has a direct impact on its bottom line. As freight volume grows and transportation becomes more complicated, the need for logistics management rises.] What is Logistics Management? The word ‘logistics’ originated in the military. Logistics was the term used for the process of getting equipment and supplies to troops. It wasn’t until the 1950s, when the complexity of shipping materials to and from businesses increased, that ‘logistics’ referred to business functions. Now, logistics is an industry and a vital part of any business model; it is the control of the flow and storage of goods into and out of a business.

Why is Logistics Management Important?

Meeting customer demand and providing superior service is one of the most important benefits of good logistics management. Consumers demand better service and this mandate has ripple effects up the supply chain, creating a need for shippers to provide fast, accurate and quality service. Logistics management is responsible for satisfying customer demands. Logistics management is also important for creating visibility into a company’s supply chain. Advanced transportation management systems (TMS)analyze historical data and track real-time movement of goods into and out of a business. Logistics managers can use this information for process optimization and avoiding potential disruptions. TMS data analysis keeps a company’s supply chain moving more efficiently, all while gaining operational insight.

Proper logistics management drives increased revenue. Improved customer service can bring a good reputation to a company’s brand and generate more business, and supply chain visibility creates opportunity for major cost savings in operations. Logistics management will give a company

control over inbound freight, keep inventory at optimal levels, organize the reverse flow of goods, and utilize freight moves on the proper transportation modes – all of which can cut costs significantly.

With the growing complexity of logistics management, many companies select a 3PL to manage some or all of their logistics functions. 3PLs have expertise and advanced technology to cut costs and improve processes much more efficiently than companies can in-house.

http://info.plslogistics.com/blog/why-is-logistics-management-important

The Importance of Business Logistics by Madison Hawthorne

Business logistics is the planning process as well as the implementation of efficient and effective storage of raw materials, inventory, finished goods and services. It also refers to the flow and transportation of product from the warehouse to the consumer. Service organizations also value business logistics. Logisticians make certain that materials and information is provided at the time of service delivery.

Maintaining Competitive Edge Successful business logistics provide a competitive edge against other organizations. It provides a system or process by which customer needs can be fulfilled in a more efficient manner. A business should strive to provide shipments of merchandise in a more accurate and fast manner than competitors do. The Internet has made it possible for many companies to do this.

Building Good Consumer Relations Providing product in an efficient manner, which business logistics helps to do, also helps to build good consumer relations. This is not only important for immediate monetary gain, but also because good customer relations can mean more business. One of the best ways to and grow your business is to provide good, quality service that customers will tell other customers about.

Creating Finished Product A business needs to ensure there are enough raw materials available to make finished products. Without quality goods, a business cannot make quality product. Having enough products stocked is also necessary for supply and demand purposes and to maximize customer satisfaction.

Providing Organization

Each time a product is created, business logistics can help to ensure the process goes efficiently. It is important that inventory be tracked, transported, stored and manufactured in a way that accommodates all of an organization’s departments. Controlling this flow so that each department knows what to do and what is expected will help to ensure that the company’s plans and goals stay on track.

http://smallbusiness.chron.com/importance-business-logistics-30906.html

Why Logistics is So Important to Supply Chains Any successful business leader will acknowledge the crucial importance of effectively organized logistics. They understand that implementing seamless logistics is a key element in keeping pace with customer demands and outperforming competitors. Whatever the size of your business, you will want to grow and expand. That probably means expanding on a regional, international or global level. Whatever your business location or industry, logistics can help cut on the costs and time you spend to move products from one point to another. Supply chains are complex and sensitive as they depend on always-changing customer demands. A supply chain cannot ensure high value if it is without effectively organized transport. For this reason, logistics is one of the most crucial factors in the quality of any supply chain. If you look at effective transport done right, you might get the impression that it “seems simple”. It actually requires a lot of special knowledge, skills and professional management to get it look so “effortless. Don’t let the end result of good logistics fool you – it takes a lot of specialized assistance to get it to flow so smoothly. Effective transport improves a supply chain by decreasing (if not avoiding) waste of materials and time. This helps supply chain professionals transport products and deliver them to the right location, on time – which is a priority for any successful business.

Effectively coordinated logistics leads to positive business results As businesses grow and expand (regionally, internationally or even globally), they become more reliant on effectively organized supply chains which includes sophisticated logistics. This element of supply chains is not something that “only matters in large-business development”. It is just as crucial in of improving efficiency and profitability with smaller and medium-sized business as well. Logistics plays an essential part in supply chain management. It is used to plan and coordinate the movement of products timely, safely and effectively. Customers now not only include your neighbors and local friends; they include people from across the globe, as well. Regardless of the distance, each customer expects their products to be delivered quickly and flawlessly. In order to do this, smart businesses hire experienced professionals to align the pattern of movement of products in the most convenient and practical way. Logistics helps businesses create value Providing value to customers does not only refer to quality or quantity. It also refers to availability. As better logistics makes your products more available to an increasing group of people, wise business leaders consider it a very important tool in creating value for customers. Logistics creates and increases the value businesses offer by improving merchandise, and ensuring the availability of products. In order to provide more value, businesses either work on improving their own logistic activities or rely on professionals. Logistics helps in reducing costs and improves efficiency With global trade growing more popular, logistics has become the heart of supply chains. Business leaders have realized they can reduce their costs by establishing partnerships with other businesses which offer transportation and warehousing. When businesses start using such services to outsource transport and warehousing, they improve their overall business efficiency, sometimes dramatically. If they let these partners take charge of shipping their goods to end customers, this results in a better reputation and a stronger brand. By working with highly professional and reliable logistics companies such as A&A, many businesses have improved their efficiency by providing faster delivery of product. This leads to an improved customer experience and higher working efficiency in general.

Logistics helps delivering your product at the right place timely Logistics is firmly and clearly defined within a supply chain. However, due to differing customer demands, it has to be constantly evolving in order to provide better results. Customers nowadays are more likely to impulse shop using a smartphone, and be equally as impatient about receiving their order. With professionally organized logistics, businesses are able to answer short-time requirements. By choosing an experienced team of professionals, business entrepreneurs can ensure quick and safe shipping, warehousing and delivery of their products to customers. They can incorporate these services in a way that adds value to their offers, and ensure their products get to the right place on time. Logistics is the key to success with supply chains Supply chains are unique networks between businesses that deal with the production, shipment, warehousing and delivery of products. These networks are very important to businesses as they largely affect sales and profits. However, without effective and wellorganized logistics, supply chains can’t help your business gain a clear advantage over the competition. While a good marketing strategy can “open many doors” and attract customers, a reliable logistics service can help your business build and maintain a positive public image. Meanwhile, poorly organized logistics can lead to losing customers and decreased sales. Keep your customers satisfied, rely on experienced logistic professionals Satisfied customers are the most precious asset for any business. They are the main drive for the supply chains in each of the three phases: manufacturing, marketing and logistics. For this reason, it is a priority for each business owner to clearly understand customer needs, preferences and demands, and then work relentlessly to meet them. When successful business leaders acknowledge the needs and requirements of their existing and potential customers, they develop a strategy. Whether the business is small, middle-sized or large, strategies rely on effective logistics. At A&A, we clearly understand the importance of reliable, quick and timely transport of products for businesses in various industries. Our logistics teams offer their experience and expertise in all types of transportation. Regardless of the type and size of your products, we are ready to assist you with air, ocean, ground and inter-modal freight forwarding.

With over 25 years of working experience and a long list of satisfied customers, we are proud to offer seamless logistics services to our customers. Our A&A professionals in Canada and the USA work devotedly to provide tailor-made solutions for each customer separately. Our facilities are well equipped, secured and located strategically to accommodate all kinds of transportation, as well as product reception and delivery. https://www.aacb.com/why-logistics-is-so-important-to-supply-chains/

Logistics: What It Is and Why It’s Important to Your Company April 3, 2012 by Contributor

The term, “logistics,” and its actions originated with the military. In the war theater, logistics applied to the process of supplying equipment and supplies to troops. Logistics as a business concept evolved in the 1950s with the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain. Today, the business sector uses this term to describe the efficient flow and storage of goods from point of origin to the point of consumption. The supply chain is a vital part of this process, including transportation, shipping, receiving, storage, and management of all these areas. Within the business sector, logistics can be applied to information, transportation, inventory, warehousing, material handling, and packaging, disposal, and security.

Business Logistics Definitions

The Council of Supply Chain Management Professionals (CSCMP), the preeminent worldwide professional association of supply chain management professionals, defines logistics as “…that 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.” Another short CSCMP definition is “the management of inventory, at rest or in motion.” The main fields within logistics include: 

Procurement Logistics is the entire process used to select suppliers and negotiate contracts for delivery of goods or services. It consists of activities such as market research, requirements planning, make or buy decisions, supplier management, ordering, and order controlling.







Production Logistics concerns itself with streamlining and controlling the flow through the supply chain from point of entry to the end, which is distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control. Distribution Logistics [PDF] is concerned with the delivery of finished products to the customer. It consists of order processing, warehousing, and transportation. Major subsectors within the industry include air, rail, water, and truck transportation, urban transit and ground enger transportation, warehousing and storage, and motor vehicle repair. Logistics involve the integration of these sub sectors, including information, transportation, inventory, warehousing, material-handling, and packaging. Disposal Logistics, also known as reverse logistics, stands for all operations related to the reuse of products and materials. The main function of this field is to reduce logistics cost, enhance service, and save natural resources.

As the business world grew, this definition of logistics called for management, leading to the development of experts called supply chain logisticians. This type of leadership encomes the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners which can be suppliers, intermediaries, third-party service providers, and customers.

Why Logistics is Important to Your Company

Even small businesses deal with finding suppliers, if not with transporting merchandise to a store. Small business owners also conduct distribution logistics with inventory and warehousing. And, every small business owner can tell you about how they handle reverse logistics, with returned merchandise or refusal of services. Larger businesses may deal in all four logistic fields. In the business environment, logistics either have an internal or external focuses (inbound or outbound). Depending upon the business involved, this part of the chain can be simple or complicated. For more complicated procedures, third parties often are hired to conduct any one of the four fields within business logistics. Third-party logistics (3PL) involves using external individuals or organizations to execute logistics activities that have traditionally been performed within an organization itself. If, for example, a company decides to export its product, it may hire a person or organization to help with distribution logistics. Today, there is a movement toward building fourth-party logistics (4PL), which integrates 3PL competencies and other organizations to design, build, and run comprehensive supply chain solutions. A 4PL general contractor would manage other 3PLs, truckers, forwarders, custom house agents, and others, essentially taking responsibility of a complete process for the customer. Another specialty includes logistics consulting services. Firms in this industry specialize in the production and distribution of goods, from the first stages of securing suppliers to the delivery of

finished goods to consumers. Such firms give advice on improvements in the manufacturing process and productivity, product quality control, inventory management, packaging, order processing, the transportation of goods, and materials management and handling. In the process, these consulting firms might suggest improvements to the manufacturing process in order to use inputs better, increase productivity, or decrease the amount of excess inventory. Consulting firms in this segment of the industry also advise on the latest technology that links suppliers, producers, and customers together to streamline the manufacturing process. Even project management requires logistics, as one vein of this science coordinates a sequence of resources to carry out projects. Typical constraints in project management include scope, time, and budget, or the same constraints involved in business logistics. The time constraint refers to the amount of time available to complete a project. The cost constraint refers to the budgeted amount available for the project. The scope constraint refers to what must be done to produce the project’s end result.

https://logisticsdegree.net/2012/logistics-what-it-is-and-why-its-important-to-your-company/

Importance of Logistics in Business by Kevin Johnston

Logistics means moving and storing materials, products, information and service providers from the point of origin to the point of consumption, according to the Council of Supply Chain Management Professionals. Your business serves as a conduit for products you buy or manufacture or for services you provide. These offerings must go to the customer in a timely manner or you will experience excessive returns, falling sales and a declining reputation.

Inflows You need supplies, raw materials and information flowing into your business so you can use them to create or deliver your products or services. If a delivery comes late or a computer goes down when you are expecting vital information, your logisitics are not working. You either need to become a logistics expert or hire one to make sure you get what you need on time. If you provide an office cleaning service, for example, and your cleaning supplies don’t arrive on time, you can’t clean offices that depend on you.

Internal Flow Supplies, materials and information flow through your company once they arrive. They must arrive on time at various workstations, desks and offices so your employees can use them. For example, the financial background check you perform on a company cannot be delayed if the officer approving credit for the company has to meet a deadline.

Storage and Retrieval Some items come into your company and must be stored until needed. Physical products and supplies must be stored, and information must be filed electronically or physically. When you need

these items, you must have a system for identifying and retrieving them. If a customer places a special order for a product and the warehouse supervisor stores it until you receive payment, you must be able to count on the supervisor to find the item when you are ready for it.

Outlfow You make a living delivering your product or service to your customers. That’s what they pay for. Whether you ship, deliver, transmit or physically go to a customer’s home or business to perform a service, you cannot afford any glitches in this function. If a vital machine part for the repair of a customer’s air conditioning arrives, you must see that it gets delivered to the customer’s site and that an installer is there at the same time to install it.

https://yourbusiness.azcentral.com/importance-logistics-business-8714.html

Importance Of Logistics…

March 21, 2007

Filed under: Business Logistics — TSBL @ 2:32 am

Logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics . For companies, 10 per cent to 35 per cent of gross sales are logistics cost, depending on business, geography and weight/value ratio. Logistics is comparatively a new term, but not the operation. Logistics has existed since the beginning of civilisation. Raw material and finished products had always to be moved, though on a small scale. Things began changing with the advance in transportation. Population began moving from rural to urban areas and to business centres. No longer did people live near production centres, nor did production take place near residence centres. The geographical distance between the production point and consumption point increased. And logistics gained importance. Another factor has come into play recently. Since the early 1990’s, the business scene has changed. The globalization, the free market and the competition has required that the customer gets the right material, at the right time, at the right point and in the right condition… at the lowest cost.

Author: Prof.Nansi

https://logisticsmanagementandsupplychainmanagement.wordpress.com/2007/03/21/importance-oflogistics/

The Importance of Logistics for your Business

Logistics is the practice of moving resources from origin to destination as efficiently as possible. In retailing, this refers to the process ordering from a manufacturer or vendor and getting the merchandise into the hands of your customers with the least cost, time and effort. The best way to approach logistics for your business is to understand the goal. You want to get the fastest, cheapest and safest delivery of goods with the least headache and opportunity for things to go wrong. Put simply, you want to balance performance and cost and get the most of the former with the least of the latter. Logistics management is the organized use of information, analysis and techniques to eliminate bottlenecks and cost in order optimize this process. If you've ever shipped merchandise, you already understand the outbound version of logistics. A customer orders an item from you and pays you for shipping. You make sure that the right items (quantity, size and color) are packaged securely and select a shipping provider based on their speed, reliability and cost. If you're shipping internationally, you need to fill out a customs declaration that describes the contents of the shipment. The next step is to monitor the shipment to assure that it arrived at its destination intact. A well formulated outbound logistics plan eliminates cost in this process and successfully delivers the shipment to the customer in a timely manner. The portion of logistics with an internal focus is inbound logistics. In this process, you have an inventory management system, perhaps an automated system, which lets you know when you need to reorder an item. This system informs you of the length of time it will take for delivery, the shipping cost options and other useful information such as reorder points for specific items. By striving to improve upon your inbound logistics system, you can cut costs and provide a boost to sales. In logistics, knowledge is power and small businesses achieve cost savings by understanding the components of cost and time in inbound and outbound shipments. This includes understanding postal rates and shipping times, and if shipping internationally, any import duties that might apply at the destination country. It also includes working with your shipping provider to understand where savings can be achieved. Many shippers charge extra for processing waybills with handwritten addresses but discount for using labels generated from their websites or specialized online applications. In addition, understand that shipping rates are not always set in stone. If you ship several packages a month, discuss volume discounts with your shipping provider.

The acknowledged master of retail logistics management is Walmart. Walmart was so successful at rapidly moving merchandise through its warehouse system to its stores that the U.S. Army, the former champion, studied their techniques. Walmart optimized its supply chain so well that it began to by its warehouses and truck fleets and get shipments sent directly to their stores. Nearly two decades ago, Walmart transferred responsibility for keeping its shelves stocked to its larger vendors. It may be difficult to implement a logistics management system to rival Walmart's, but by applying some of the above principles you can make positive changes that will benefit your business in the short and long-term. http://www.liquidation.com/c/beclogistics.html