The Six Elements Of Logistics Management

Your business automatically gains maximum attention if your supply chain system is smooth. This means it gets more customers and generates more revenue. An effective logistics strategy provides top-notch features and functionalities for improving the customer experience. Here are some of the major components of logistics management that would help companies to reduce operational costs and enable the proper execution of key supply chain functions.

1. Demand Planning

Determining all the aspects of logistics is important to maintain a balance between demand and supply predicting the future demand for a company’s products and using those predictions to organize its supply chain to meet that demand. It helps you provide for your customers when they want to buy your products and helps you estimate how much inventory you need, when you need it.

2. Storage and Material Handling

Material handling is an important part of the supply chain. It encompasses inventory management and control of the movement, storage, and protection of products and materials throughout manufacturing, warehousing, distribution, and disposal.

3. Inventory

Inventory management helps companies identify which and how much stock to order at what time. Poor inventory management can have repercussions throughout the organization and detrimentally affect its bottom line. Over-ordering ties up capital, complicates warehouse management, and could result in a loss due to an outdated or expired product that the company cannot use or sell. Hence, efficient inventory management can boost profitability, enhance supply chain visibility and improve operations by keeping a steady inventory flow.

4. Packaging

Packaging also plays an integral role in supply chain management. It protects products from damage, allows for their efficient distribution, communicates to the consumers, and is one of the major product promoters in a competitive marketplace. In order to achieve successful supply chain management, packaging systems have to be connected with aspects of marketing, logistics, production, and the environment.

5. Transportation

Transportation has great significance when it comes to logistics. Logistics is majorly all about transportation. Efficient delivery of products from one place to another is necessary to smoothly maintain the supply chain system. Delivery should always be handled with punctuality.

6. Information and Control

Getting the right information and control over the logistics operations plays a pivotal role in executing each one of these components. It enables companies to maintain key information in an accessible format and helps to take operational and planning decisions. Control always comes with pertinent information. Hence, the logistics team should have proper knowledge about the carrier and shipper to maintain an efficient system and avoid inconvenience.

A well-planned logistics management strategy has become essential for businesses as transportation is becoming a more complex process than ever before. Having an effective flow of communication and products enables end-to-end visibility which can improve the customer experience. We can assist your business with a range of services to ensure your logistics management is executed beyond expectations, call Image International Freight today +61 2 9773 1378.