Logistics management is a term that has sprung up in the recent past, and there is a miscellany of reasons supporting this surge. As a community reeling under a pandemic, we are witnessing new arenas which make it possible to stay at home and get all the amenities practically delivered to our doorstep. Coming from a long supply chain and efficient logistics management, we just receive the right products at the right time and to the desired place. But have you wondered how? Well, this is this simple answer: logistics management.
What is Logistics Management?
Logistics management is the process of governing, assessing, and controlling the efficient forward and reverse flow of goods, services, and related information from the place of origin to the site of consumption per customer needs. However, it is not limited to the increased efficacy of the movement of goods; it also takes into account the efficiency of storage. In short, it is a whole set of rules that command, control, and curate the delivery of a product from point A to B and vice-versa.
We at Amerigo Logistics give paramount importance to logistics management as it is a crucial component of one big procedure. While the whole supply chain is an extensive process, logistics management is but one part of it—which, not to be missed, is essential. Logistics management within the supply chain is a crucial link in the chain without which the working of logistics companies & 3LPs would not have been possible. Perhaps that is why people stress that logistics management is indispensable for the business. But how? Keep reading to explore the importance of logistics management.
What is the importance of Logistics Management?
Now, logistics companies work with a principle that revolves around the seven R’s:
- Right product
- Right quantity
- Right condition
- Right place
- Right time
- Right customer
- Right price
The aforementioned R’s have become the guidelines on what logistics companies must do to work effectively. So, this is what commands the working of a logistics company and its management. But this still lacks the explanation as to why logistics management is important for a business.
Consequently, here are some of the points of paramount importance that dictate how logistics management is also an integral part of other businesses:
Enhanced visibility
An important facet of logistics management is increased visibility. When different aspects of good storage and movement are constantly checked, it becomes easy to track the activities. Instead of getting lost in different steps, the business can counsel the whole supply chain. This, in return, eliminates the chances of supply chain problems and extends the scope for demand planning.
- Reduced Overheads
With soaring visibility, the number of problems or repetitions in the whole process drops tremendously thereby giving profits a boost. How? By proactively monitoring inventory levels, businesses can regulate warehouse spacing and circumvent shipping costs. These changes result in lower overhead, which directly affects profits.
- Risk mitigation
Every business inevitably involves risk. Each company has its own set of hazards that it works to reduce. Owners can classify these risks into high, medium, and low categories based on their intensity with logistics management. Then, a strategy for reducing future losses, both financial and non-financial, can be developed and implemented.
- Happy and satisfied customers
A great customer experience (CX) is what motivates repeated sales. By accurately and speedily fulfilling orders, you enhance the customer experience, which raises brand loyalty and future purchases.
- Competitive edge
On the ground level, rendering unparallel services is at the core of enhanced customer experience. Likewise, delivery of the right goods to the right place and at right time is what makes a logistics company stand out, giving it a competitive edge.
To put it in a nutshell, logistics management is an inseparable part of a business as it not only eliminates the number of problems or risks but is also consequential in altering the profits that a business gains. Hence, logistics management is imperative. And that is the reason behind Amerigo Logistics emphasizes efficacious logistics management.
