Logistic may be
defined as a complex movement of employees, products, and services. With the
increasing competition and dynamism in the business environment, every business
organization should develop a communicative supply chain management system.
This will enable the business to fight against the growing competition.
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help on assignments related to supply chain management, feel free to reach Online Assignment Help.
Distribution
chain management is a critical area to deal with in the context of financial
performance of a business. It is important for the top management to look into
the pros and cons of developing the supply chain and product distribution
network.
Defining
Logistics
Logistic refers
to the function of storage and movement of products from the place of business
to the final consumer, the place of production to the place of packaging or from
the wholesaler to the retailer. Logistic as a concept comprises of every item
related to business namely finished products, employees, machinery, etc.
Logistics can be termed as a complex process to meet the transportation needs of
the customer on a timely basis.
The concept of Logistics & Supply Management
There is a basic
difference between the concept of logistics and supply chain management. When
the area of concern is internal movement within the organization, like the movement
of raw material and finished products, it comes under the purview of logistics, while the movement outside the premises
of the organization that are external to the business is known as supply chain
management. It includes distribution of products from suppliers to wholesalers
to retailers.
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Importance
of Logistics
Logistics
management may look into many areas in a business; namely distribution, the order of
raw material, the supply of finished goods, etc; but the main area of service is the
customer management. If the business is unable to maintain and grow its
customer base, the basic purpose of supply chain management is dissolved.
However, it is
necessary to carry out a cost-benefit analysis before the implementation of
Logistic management. If the expenses of implementation of logistics management
is more than the value it will be able to create, then it should not be
implemented.
Process of
Transportation
The area of
utmost importance in the operations and logistics management is the
transportation process. The capability of the transportation process to ensure
that the goods are delivered to the final consumer on a timely basis is a major
task. Due to the implementation of logistic management in an organization,
business expenses like transportation cost, weight control, power and
electricity expenses are reduced. Thus, one can say that transportation plays
an important role in logistic management.
The
effectiveness and efficiency in an organization can be improved by implementing
a reliable transportation network with the help of logistic management system.
Logistics help the business to improve its transportation time, reduce the cost
involved and help manage the transportation network better.
E-Commerce
in Supply chain management
With dynamic
business environment, combining supply chain management and E-commerce has
become the need of the hour. The interaction between the final consumer and
business with the help of the world wide web has helped business create more value
for the consumer at a comparatively lower cost. The combination of the internet with
supply chain management has helped the business as well as the final consumer
keep a check on the movement of goods with the help of live tracking systems, and this has reduced the cost of maintaining call centers to attend to such queries.
