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| Words: 568 | Submitted: 19-Mar-2012
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DescriptionInfo about Logistics management
Logistics is the management of the flow of goods between the point of origin and the point of use in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security.
Logistics management involves a number of elements. First, it includes choosing the vendors who will be providing transportation services. It also includes selecting the most efficient routes for the shipping of goods and investigating the best method for delivery. Plus, in more recent years, logistics management has also included the selection of software and IT resources to help manage the entire process.
The incorporation of logistics management is hugely beneficial to any company. Smoother flow of operations can be achieved through this incorporation.
In order to maximize profits in any company, it becomes a must to know and understand all the processes that it is involved in from the very start of the supply chain right down to its end. This is precisely why there is a need to implement effective logistics management in the company. This actually pertains to the organized movement of resources, materials, and people in the enterprise so that a coherent and smooth flow may be implemented from start to finish. Productivity plays a major role in logistics and the supply chain. Productivity can be defined by the amount of output divided by the amount of input. Warehousing and transportation are dependent on human labor, which is considered an input. An issue that interrupts the flow of goods nowadays is theft. Even though insurance companies may reimburse for the loss, time and costs tend not to be covered. Theft can result in stock outs.
As an example letís take a shoe factory. Of course, we would need to have an effective transportation or delivery system, to get our products to the waiting customers. Customers here could either be our usual retail customer or your wholesale ones, since we are manufacturing shoes of all kinds here. Furthermore, since the firm is operating in a global sense, then we would definitely need the help of couriers and carriers to get our products delivered overseas. These courier and carrier companies should be able to transport the products in a safe, efficient, and timely manner. This way, costs can be managed effectively as well. The goals here is to reach total logistics which means to find the lowest total cost that supports an organizationís customer service requirements
There are also other factors to consider when undergoing business logistics as well. Supply of materials, for one, should be considered in the sense that one needs to make sure there are sufficient supplies of needed materials so that his/her company ...
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