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Logistics Management & Various Aspects You Need to Know

Manajemen Logistik & Beragam Komponennya yang Perlu Kamu Ketahui

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Learn About Logistics & Logistics Management

What comes to mind when you hear the word ‘logistics’? It’s often used to describe a series of processes related to shipping and receiving goods. 

However, is it true that logistics are limited to send & receive activities? There is also an important process in it, which is known as logistics management. What are the aspects? This article will also discuss logistics management. Read to find out. 

Based on The Great Dictionary of Indonesian Language logistics concern multiple processes such as purchasing, maintaining, distributing and procuring equipment replacement, as well as supply and labor. Generally, logistics include a larger scope rather than just sending and receiving goods. 

The definition of logistics management from The Council of Logistics Management  refers to the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to the point of consumption in order to conform to customer requirements. 

Logistics refers to the process from planning, implementation, and monitoring to achieve the effectiveness of the plans that have been developed. Therefore, it is very important to manage and maintain every asset in the logistics process so that the value of the assets and products does not decrease, but still bring profits to the business. The whole management process is called logistics management.

Logistics Management Aspects

There are some aspects that must be considered in logistics management so that the process can run as planned.

  • Demand Planning 

To ensure the demand fulfillment, planning is an important part of logistics management. This aspect measures customer interest for the products offered so that the company can determine how much product should be provided. Providing the right amount of product at the right price, and choosing the transportation to minimize customer disappointment and maintain the company’s reputation, in order to conserve company profits . 

  • Storage & Materials

Demand is an unpredictable factor, so it’s important to have more inventory in the warehouse. A warehouse is responsible for the safe storage of products to be marketed. Optimizing its function as a storage area is also part of logistics management. 

  • Inventory Management 

Inventory management includes ensuring goods transfer (inbound and outbound), monitoring stock amount, and placing them at the right location according to their types. 

Read More: Complete Guide Warehouse Management System

  • Transportation Management 

Logistics includes the use of various types of transportation to move products from one to another place. It’s important to combine the transportation used and choose the right transportation to accelerate the delivery process with minimum costs. 

Know More: How to Maximize Your Vehicle Usage 

  • Control

Logistics are a series of complex processes that require precise information. Control is needed so all the aspects above can run as planned. 

The Purpose of Logistic Management  

As mentioned earlier, logistics management is about finding the best way to get a product from its initial location to its destination. There are also other aspects that can be achieved through this process, such as:

  • Reduce Transportation Cost 

Transportation is one of the aspects related to logistics. Remember that shipping costs are affected by the type of product being shipped, the type of delivery, and the distance. A special logistics management strategy is required to minimize transportation costs. 

Read more: Reduce Shipping Costs with Technology 

  • Improve Product Quality

Another goal to be achieved is to improve the quality of products as a way to increase customer satisfaction. With proper management, companies can examine the damaged product, so it doesn’t reach customers/other parties. 

  • Diminish Unexpected Events 

During the logistics process, unexpected things that interfere with the planned plans often happen. Organized logistics management will reduce the risk, such as by preparing a backup plan or using a digital system to help reduce errors due to manual processes. 

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