There are some aspects that must be considered in logistics management so that the process can run as planned.
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 .
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 includes ensuring goods transfer (inbound and outbound), monitoring stock amount, and placing them at the right location according to their types.
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- 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.
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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.
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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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