Note on Logistic Management

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 Logistics Management

The process of designing, managing, and improving the goods and service with the help of the supply chain is called logistic. All the firms that involve in task important for turning raw materials into a goods and services and putting it in the hands of the people or business customer are called logistic. Logistic include tasks such as order processing, warehousing, materials handling, transportation, and inventory control. Logistic describe the facts that how seller physically get products where they need to be when they need to be there, and at the low cost. The difference between logistic and marketing channel is the member type and their function. A supply chain includes the firms which supply the modules, component parts, and supplies necessary for a firm to produce a product and the firms that facilitate the movement of that goods and services from the manufacturer to the end users. Logistics objective is to deliver exactly what the customer demand—at the right time, in the right place, and at the right price with low cost. Planning the distribution of goods to user, distributor usually looked at a process termed physical distribution, that means the activities have to move finished goods from producer to end customers. Nature and importance of marketing logistics mean getting the product to the customers in the place at the specific time. Companies now a days have a greater emphasis on logistics because service and satisfaction of customer have become requirement for marketing strategy. The major cost element for most companies is logistic. The expansion in different product has created an importance for improving logistics management. Innovative information technology has developed opportunities for major gains in distribution objective.

Developing importance of logistics with effective logistics is becoming an essence of winning and maintaining customers. The cost element for most organization is one and only logistic. The change in different product has created a need for improved logistics management. Information technology has developed opportunities for providing and meeting goal in distribution channel.

Transportation / Types of Transportation

Air

The air transportation always has high cost compared to other transportation.This transportation in short time periods can cover a long distance. Air transportation is affected by weather conditions and schedule may be delayed and deviations may occur.

Sea

The ability to carry large quantities of commodities is only possible with sea transportation through specialized cargo ships. Sea transportations are flexible that helps to determine routes and schedules. It also depends on weather conditions but not as much as air transportation.

Rail

The slow transport mode is known as rail transportation. Materials with low cost and raw materials are more often transferred. Weather conditions do not affect on rail transportation. 

Road

Road provides lower capacity and quantity capabilities than rail transportation. Advantage includes the ability to offer door-to-door services and weather conditions does not affect the road transportation.

Pipeline

Helps in transporting liquids and gasses for example oil, natural gas. The transportation is usually slow (3-4 miles per hour), it is operated 24 hours a day which makes it an efficient transportation mode for all product types. This transportation, provide a specific network with certain stops, intersections, etc. Weather condition is not affected in rail operations and their arises limited technical problems so it is easy to use.

The Role of Transportation in Logistics

The time and place utility is developed by transportation, both of them are essential for exchanging money that takes place, it has impact on availability, adequacy, and cost for several kinds of decisions that company makes for managing transportation. Customer delivery often includes the timeline that can only be gained by the use of trucks. The delivery of a product for its physical attributes and the cost, availability, and adequacy of transportation helps to enter into product decision. The related product decision of firms helps to deal with products that can be seen with the decision relative to where the products are sold. This decision is affected by the transportation characteristics of the products itself as well as transportation availability, adequacy, and cost. How to purchase and which places to purchase, have impact on transportation considerations of whether the firm is a producer, wholesaler, retailer or service firms. The goods involved may be module, raw materials, or finished goods for reselling. The characteristics of the goods,  availability, adequacy and cost of transportation have to consider the "what and where" decision.

Warehouse

A  warehouse management is a system that is specialized in helping the routine operations in a warehouse. The systems help to do this by allowing the customer to have a centralized location where various warehouse activities are managed through a communication on a mobile device or a tablet working in the warehouse or a laptop in the office. It helps to run warehouse efficiently and easily and if losses arise in the different warehouse processes it helps to protect them. 

Inventory Management

The process of maintaining the optimum number of each inventory item is called inventory management. The main objective of inventory management is to production, sales, interruption customer service at the minimum cost without interruption.Inventory is the largest item in the current assets it can contribute to the losses or even failure of the business.

Order Processing

There are several ways of submitting an order like via e- mail, telephone, through sales person, through computer. In some cases, orders are generated by suppliers for their customers.

If the order is being received, it must be quickly and accurately processed by the company. When processing is done effectively, both the company, as well as customer, is benefited. In recent days sophisticated computerized order processing system is used by most of the firms which speed up the cycle of order, shipping, and billing.

 

References:

Kotler, P., & Armstrong, G. (2013).Principles of Marketing.Chennai: Pearson India Education Services Pvt Ltd.

http://www.123helpme.com/logistics-management-view.asp?id=165981

  • All the firms that involve in task important for turning raw materials into a goods and services and putting it in the hands of the people or business customer are called logistic.
  • The time and place utility is developed by transportation, both of them are essential for exchanging money that takes place, it has impact on availability, adequacy, and cost for several kinds of decisions that company makes for managing  task related to the transportation
  • A warehouse management is a system that is specialized in helping the routine operations in a warehouse.
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