What is logistics management?

Logistics management is one of the essential elements of supply chain management, which is used to meet the needs and demands of customers by planning, controlling and implementing it. Logistics management helps organizations to reduce their costs and provide better services to customers.

• Logistics management is the management of the complete flow of goods and their specific services.

In general, in logistics management, the optimization of the entire process of transporting goods, orders and payments is considered so that all customer needs are fulfilled in a cost-effective way and in the best possible time.

What are the key components of logistics management?

5 of components that definitely help in effective management.

1. Planning

Logistics planning is very important to maintain the balance between demand and supply. Planning should be done in all stages of storage and movement of goods. Also, in order to avoid problems such as insufficient or inappropriate supply of goods, damage to the product or production raw materials, improper storage and other cases, proper planning must be done.

2. Packing

Proper packaging is essential for safe storage and transportation as well as delivery of goods. Therefore, one of the main components of logistics management is packaging. Generally, organizations pack products in cube form for easy storage, handling and transportation.

3. Inventory management

Inventory management involves maintaining information about inventory, warehouse availability, market demands, and other related matters. With proper inventory control and management, logistics companies can balance supply and demand. These companies can determine how much inventory to store and where. Some of the benefits of inventory control are accurate order fulfillment, efficient order planning and organization, well-organized warehouses, increased profits, and customer retention.

4. Transportation

Transportation is the movement of goods. Transportation management is required at almost every stage from construction to final delivery. Transport management is responsible for planning, implementing and controlling the forward and reverse flow of goods by road, air and ship. Proper transportation management brings benefits such as on-time delivery and reduced costs.

5. Data management

Maintaining the correct flow of information is essential to generate useful insights and make better decisions for logistics management. It is also very important to use technology optimally and define better algorithms for any process involved in logistics management. However, managing them all requires a large team of logistics professionals.

In addition to the mentioned fees, another important part of logistics management is customs management. Because the examination and processing of government legal documents in cross-border transfers for global trade takes place in this department.

What is the difference between supply chain management and logistics?

Logistics management is one of the important components of Supply Chain Management ( SCM). Logistics focuses on moving products and goods and storing items in the supply chain efficiently. Supply chain management (SCM) is more comprehensive. Supply chain management encompasses a wider range of supply chain planning activities such as planning, sourcing, it covers production, transportation, storage and sales.

What is a logistics company?

A logistics company controls the various processes of moving goods, including warehousing and transportation from origin to destination based on specific customer needs.

Specialized logistics companies provide their services to industries that need transportation. Since there are different types of transportation such as air, sea, rail and road transportation, these companies must have complete facilities such as software, warehouses and trucks and other required constructions. Logistics companies supervise the movement of vehicles, facilities and warehouses.

For the basic implementation of logistics, logistics companies use transportation management system software and management systems. Using artificial intelligence to track shipments, unmanned vehicles such as drones and driverless forklifts are technologies that help these companies provide better services.

 What are logistics services?

Logistics services include all elements of the supply chain from the factory to the end customer. This chain includes transportation from the manufacturer to the warehouse, warehousing and ordering and delivery to the final customer. Logistics services can make the difference in meeting demand, delivering products to customers, and increasing your profit margins.

An overview of logistics services includes the following:

• Transportation from the factory to the supply warehouse.
• Warehousing and ordering.
• Shipping abroad
• Delivery of orders to customers.

You can choose different types of logistics services to meet the needs of your business.