Logistics management is the process of organizing products and merchandise movement flows in the warehouse in order to reduce time and costs in preparing and shipping orders. Excellent logistics and sales management can represent a competitive advantage for companies. The appropriate distribution of logistics flows is the first step for a business to differentiate itself from its competitors and meet customer expectations.
Logistics has become a key activity for companies that are concerned with correctly managing raw materials and products, as well as supplying the necessary quantity of goods in the appropriate conditions.
What is the logistics management of a company?
Logistics management is a concept that encompasses the processes of planning the storage and transportation of goods to ensure their final distribution. This process covers the workflows from the moment the company receives the raw materials to produce the goods or the items sent by suppliers until the distribution of orders.
Logistics involves the different departments of a company. Its position in the organizational chart varies depending on the type of business and the importance of the supply chain in the company's strategy. Logistics can be outsourced, integrated into the sales department, or belong to an independent department that works in conjunction with manufacturing.
Depending on the needs of each company, logistics management includes a wide variety of processes, such as designing the warehouse layout, inspecting storage tasks, optimizing order preparation, choosing the right handling equipment to handle the goods, or controlling stock, among others.
The professional profiles that perform tasks related to logistics management are very diverse and can include professionals such as supply chain technicians, who ensure the necessary resources to coordinate the movement of goods, stock management technicians, who control the status of products in the warehouse, operations directors, who ensure proper logistics organization, and warehouse managers, who organize the day-to-day running of the logistics facility. In companies with a complex supply chain, a professional profile such as that of the Supply Chain Manager is essential to coordinate operations and ensure an effective logistics strategy.
Objectives of logistics management
Proper logistics management requires an efficient supply chain to achieve the following objectives:
Reduce costs . Making proper use of logistics resources helps to reduce the company's costs and, consequently, allows better control of profit margins. This goal can be achieved by optimizing processes. For example, the warehouse can be equipped with pick-to-light devices to help operators prepare orders more quickly.
Reduce order delivery times . Providing a fast service, with deliveries made as quickly as possible, is essential to customer satisfaction. To this end, companies implement ways to speed up the distribution of goods, using, for example, cross-docking , which consists of distributing items without having to store them beforehand.
Increase the company's competitiveness. Logistics management goes beyond organizing the movement of goods. Prioritizing aspects such as agility in shipping orders and controlling product traceability allows companies to generate added value and differentiate themselves from their competitors.
Optimize stock management . Stock is one of the main assets of any company. With an adequate level of stock, companies can ensure efficient service, avoiding logistical errors, such as excess stock or stock shortages , resulting from inadequate planning.
Achieving maximum efficiency. Logistics management seeks to achieve maximum productivity in all operations by avoiding unnecessary steps. Companies can provide better service to customers by implementing solutions that optimize warehouse processes (for example, with the help of logistics automation ).
Taking care of the environment. Green logistics is the order of the day. More and more companies are including processes in their logistics management that help reduce the environmental impact of their operations. For example, they can establish a process for classifying waste according to the materials to be recycled or reduce the use of paper with IT systems such as warehouse management software.
In short, the mission of logistics management is to strictly control merchandise in order to provide the best service, satisfy customer demand, and obtain a competitive advantage.
Scopes of logistics management
Just as there are different types of logistics, there are also different areas of logistics management that focus on specific phases of the supply chain:
Supply logistics management . This involves organizing the processes needed to distribute goods under the established conditions. For example, supply logistics management in a food company ensures that products are stored and transported at the appropriate temperature and conditions to maintain their quality.
Logistics management of goods distribution. This stage of the supply chain seeks to optimize the distribution of goods. Shipments range from the classification of products that will be loaded onto the distribution truck to the planning of the transport route and unloading at the destination.
Production logistics management. Manufacturing products requires scheduling the delivery of raw materials on time. To achieve this, it is essential that all processes are supervised and that coordination between the warehouse and production lines is adequate.
Reverse logistics and returns management . This type of logistics management refers to the organization of returns to the seller or manufacturer. Reverse logistics aims to recover the value of a product or ensure its correct disposal.
International logistics management. In companies with markets in several countries, logistics management encompasses operations designed to transport goods from one country to another. This process requires proper organization to ensure that the international movement of goods is carried out safely and without errors.
Successful logistics management is based on advanced control of all processes that make up the supply chain, which translates into greater customer satisfaction and, consequently, an improvement in the company's reputation.
Logistics management indicators
Effective logistics management requires an exhaustive analysis of all processes occurring in the supply chain. With logistics management indicators, companies can monitor all operations.
Indicators, also known as KPIs, measure logistics performance by analyzing processes such as receiving, storing, stocking, or shipping goods. With this information, companies can detect operational inefficiencies, calculate the degree of business competitiveness, explore ways to reduce operation times, improve resource utilization, and reduce management costs.
To measure logistics management indicators, companies turn to technology. 3PL Links, for example, offers the Supply Chain Analysis, an extension of the Easy WMS warehouse management software designed to visualize and analyze operations with the aim of making strategic decisions . This technology applies big data techniques to classify information extracted from warehouse operations and convert it into actionable metrics to improve performance.
Logistics management, an added value for the company
A company is differentiated from its competitors by the perception that customers have of its products and services. Logistics management represents a competitive advantage for companies because it allows them to reduce costs (a factor that has a direct impact on the sales price) and reduce the time spent completing orders.
To meet order delivery deadlines and promote customer satisfaction, companies must control all supply chain operations. To do this, it is necessary to use technology that offers complete visibility of the warehouse status. 3PL Links develops software capable of optimizing processes and providing real-time information on warehouse performance. Contact us, and we will be happy to tell you about the advantages offered by our software and how it can help you optimize your logistics management.
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