LCM COMETITIVE ADVANTAGES

Logistics management is overseeing all the logistics functions including inbound and
outbound transportation management, warehousing, order fulfillment, logistics network design,
inventory management, supply/demand planning and management of third-party/3PL logistics
services providers.

Benefits of logistics management

The benefits of logistics management are many. From managing the cycle time to successfully
handling last mile delivery logistics processes will fail without an efficient logistics management
system. Here are some of the major advantages of logistics management:

Benefit 1: Reduce operational overheads

Logistics management brings transparency and visibility to all logistics operations. Companies can
now examine historical data and come up with an effective logistics management strategy and
optimise routes to improve efficiency and lower fuel costs.

Benefit 2: Efficient product delivery

Logistics management’s primary goal is to ensure that the products reach the end customer on time
safely. It streamlines processes and increasing efficiency by eliminating resource wastage and
ensuring safe delivery.

Benefit 3: Improved customer experience

Customer service is important in logistics. Logistics management focuses on providing automated

shipment tracking to all the customers. This reduces the number of customer queries, as he/she is
given full visibility into the status of the product after dispatch from the warehouse/manufacturing
facility.

Benefit 4: Demand forecasting

Companies using logistics management software can access data points of the all the logistics
process including an accurate figure on how many products were sold and how many products were
returned. Many software products are equipped to give graphical representation of demand
forecasts to help you plan a better logistics strategy.

Importance of logistics management

Logistics management is the tether that holds all the logistics processes and key logistics
activities together. This gives end-to-end visibility to all the logistics processes to avoid obstacles and
deliver orders on time. Here are few areas where logistics management becomes necessary for
businesses:

 Safe, timely and economical shipping

 Fast order processing

 Reducing the cycle time and lead time

 Delivery profitability
  End to end visibility of products in the supply chain

Features/ characteristics of logistics management

As mentioned earlier, logistics management involves the planning, implementation, and control of
the movement and storage of goods and services from the point of origin to the point of
consumption. Here are some of the key features of logistics management:

 Order fulfillment: Fulfilling customer orders from order placement to delivery is order
fulfillment. It includes managing order processing, picking and packing, shipping, and
delivery.

 Inventory management: Managing the flow of goods and services according to the demand
levels of the customers is inventory management. It includes managing inventory levels,
tracking stock movement, and preventing overstocking.

 Transportation management: Managing the movement of goods from warehouse to end

consumers is transportation management. It includes rote planning, carrier selection, and
scheduling.

 Warehousing management: Warehouse management is supervising the storage of goods in

warehouses and distribution centers. It includes managing inventory levels, tracking stock
movement, and ensuring that products are stored safely in the prescribed conditions.

 Supply chain visibility: This feature of logistics management provides visibility into the entire
supply chain, including real-time tracking of shipments, inventory levels, and other analytical
metrics. It enables companies to identify potential problems and address them to avoid
delays in delivery.

 Customer service: Customer service ensures that customers receive their orders on time and
in good condition. It includes managing delivery schedules, providing real time tracking
information, and handling customer inquiries and solving their complaints.

 Risk management: This involves identifying and mitigating risks that could impact the supply
chain, such as natural disasters, supplier bankruptcies, and geopolitical instability. This has
been given a lot of focus after the pandemic when supply chain resiliency failed across the
globe. Risk management includes developing contingency plans and ensuring that the supply
chain is resilient and able to respond quickly to disruptions.

Types of logistic management

There are four main types of logistics management that supervises separate aspects of the logistics:

2 TOPIC

Logistics management is known to be an essential aspect of supply chain management as it entails

several functions starting from managing and storing the goods or products to delivering them to the
end customers. There are several benefits of logistics management that helps to align and automate
the activities like fleet management, warehousing, order fulfilment, materials handling, last- mile
delivery and so on.
Embracing effective logistics management is the ideal way to take your business to the next leap. The
data driven supply chain can boost efficiency and provide optimal fleet management services that
meet customer demand. Managing the flow and storage of goods or services can be a daunting task
for businesses. Therefore, understanding the importance of logistics management is beneficial for
organisations as it is designed to be scalable and configurable for various industries.

Logistics Management: Top 11 Benefits

The very essence of a business is to leverage the operational fluency across the entire supply chain.
Here are the major benefits of logistics management:

1. End-to-End Visibility

Logistics management plays a vital role in enhancing visibility into the supply chain and better control
costs. Businesses can get the real-time data which help the organisations to make informed and data
driven decisions. Embracing new age technology tends can provide better visibility which is useful in
spotting supply chain problems and gaining insights into the potential opportunities. Therefore, it
leads to efficiency and profitability of the organisations.

2. Reduce Operational Cost

An effective supply chain management allows the organisations to achieve ample transparency and
visibility in the operations. By analysing information and getting historical data, businesses can
reduce the overhead cost by proactively managing the operations. The major benefit of logistics
management is that businesses can resolve the supply chain challenges and respond to them in a
cost-effective manner.

3. Enhanced Customer Experience

Enabling the organisations to improve the customer relations can positively impact the business
growth. Amplifying the last-mile delivery is a driving factor which leads to brand loyalty and repeated
sales. The customers should be aware about the product’s journey for a streamline experience.
Smooth freight moving process is always beneficial for organisations to gain a competitive edge.

4. Warehouse Management

Designing and executing the warehouse’s processes can be a daunting task for fleet managers.
Logistics management leads to a smooth workflow of managing the aspects of storage and
distribution in the warehouses. It ensures that the right product is delivered at the right time to the
end customer. A right warehouse management tends to seamlessly optimize logistics functions.
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5. Demand Forecasting

Logistics works optimally when digital transformation and AI implementation generates valuable and
insightful data. Organisations can accurately anticipate the demand for products using the
forecasting models by enabling data-driven decision-making. It manages the supply chain by
forecasting the inventory needs, transporting, stocking and so on.

6. Inventory Management

It is one of the major benefits of logistics management as it determines how much stock to order at
what time. Inventory management plays a crucial role in improving the bottom line for companies.
The companies should have enough inventory to fulfil the customer orders. Having accurate stock
details is essential to optimize the overall supply chain processes. Tracking the flow of products with
augmented intelligent tools can ultimately lead to fulfilling customer orders.

7. Support Expansion

Logistics management is crucial for supporting the expansion of businesses by embracing new age
digital tools like Artificial Intelligence, Internet of Things, Blockchain and so on. It focuses on proving
efficiency by delivering the customer orders on time by meeting the quality standards and reducing
failures. Also, ensuring optimal storage and transport conditions leads to a great customer
experience which can take your business to the next leap.
8. Preventive Maintenance

The major benefits of logistics management can help the businesses running efficiently by
forecasting the equipment failure and preventing unplanned machine downtime. Predictive
maintenance is essential for scheduling the maintenance and inspection of the fleets. Therefore, a
well organised preventive maintenance program can be beneficial for organisations as it leads to
continual optimization of the assets and reduces the overhead costs.

9. Intelligent Route Planning

Modern route planning software plays a major role that helps in optimizing the transportation and
delivery operations. The cost effective planning and scheduling of routes tends to increase safety of
drivers and vehicles. Analysing historical data and real-time constraints allow the fleet managers to
get constant alerts and updates. An effective logistics management tends to have visibility on the
entire supply chain which enhances the last-mile logistics.

10. Boost Profitability

The major benefit of logistics management is that it provides fast and quality services by improving
the order processing efficiency. This leads to customer satisfaction as it focuses on constantly
improving the transportation processes. Organising the flow of goods can impact a company’s
profitability and growth of your business. Delivering orders correctly and on time is useful in
achieving operational efficiency and understanding the fundamental metrics of logistics.

11. Risk Management

It lays the foundation for developing realistic and cost-effective strategies for managing the potential
disruptions in the logistics industry. A well-handled logistics contributes to constantly updating the
risk management processes. Therefore, evaluating the processes and identifying the risks in real time
can help the organisations to manage every aspect of the supply chain.

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