The core of logistics management
Logistics management is the integrated coordination of many key aspects of the overall logistics network such as warehousing, inventory management, order processing, packaging, distribution and transportation. The key is for companies to plan and execute these steps efficiently to ensure that goods reach consumers in the most cost-effective and timely manner, while maximizing resource utilization.
According to industry research, more than 60 percent of U.S. and European companies suffered up to a 20 percent loss in revenue due to supply chain disruptions in 2020. While this year is unique due to the global pandemic, it also highlights the fact that in order to reduce the risk to profitability, companies must have a smooth and optimized supply chain that is able to respond quickly when faced with unexpected challenges. This is why logistics management is indispensable.
Advantages of efficient logistics management:
1. Cost reduction
Through logistics management, companies gain insight into inefficiencies and wasted resources. For example, by improving the layout of your warehouse, you can reduce the amount of leased space, and by using route planning software for transportation, you can reduce fuel expenses.
2. Increased customer satisfaction
Accurate logistics management ensures an efficient order processing system, which includes inventory and delivery management. This ensures that orders are accurate and delivered quickly, reducing the chance of customers experiencing “out of stock” situations on your e-commerce platform. Together, these details increase the likelihood that your customers will feel good about your brand, which in turn increases the chances that they will become loyal customers.
3. Strengthening market competitiveness
With real-time visualization of logistics operations, companies can build a flexible network that can quickly adapt to emergencies, such as spikes in product demand or late deliveries from suppliers. This allows your organization to make decisive decisions, ensure that the customer experience is not compromised, and stay ahead of the curve in a competitive marketplace.
4. Reduce the risk of stock-outs and overages
Accurate logistics management guarantees an efficient order processing system, which includes inventory and distribution management. This ensures the accuracy and speedy delivery of orders and reduces the risk of customers experiencing “out-of-stock” situations on your e-commerce platform. Together, these details increase the likelihood that your customers will feel good about your brand, which in turn increases the chances that they will become loyal customers.
