Logistic Management

Logistics is the design, management, and improvement of products and services with the aid of the supply chain. The term "logistics" refers to any businesses involved in the critical process of transforming raw materials into finished goods and services and delivering them to consumers or commercial clients. Order processing, warehousing, materials handling, transportation, and inventory control are just a few examples of logistical responsibilities. Logistic refers to the facts of how a seller physically delivers goods where they must be at the right time and at a reasonable price. The member type and function distinguish the logistical channel from the marketing channel. A supply chain consists of the companies that provide the modules, component parts, and supplies required for a company to produce a product as well as the companies that facilitate the transportation of those products and services from the producer to the final consumers. Delivering exactly what the consumer wants at the correct time, place, and price while minimizing costs is the goal of logistics. When deciding how to distribute products to consumers, distributors frequently consider the physical distribution process, which entails moving finished goods from the producer to the final consumers. Getting the goods to the customers in the right place at the right time is fundamental to marketing logistics. Nowadays, businesses place more of an emphasis on logistics because customer service and satisfaction are becoming essential components of any marketing plan. For most businesses, logistics is the main component of cost. The proliferation of various products has increased the need for better logistics management. Modern information technology has created chances for significant distribution objective gains.

An essential component of gaining and keeping consumers is the growing necessity of good logistics. For the majority of organizations, logistics is the only cost factor. Improved logistics management is now necessary due to the change in product. Opportunities for delivering and achieving goals in the distribution channel have been created thanks to information technology.

Transportation / Types of Transportation

• Air: When compared to other modes of transportation, air travel is almost always more expensive. With this mode of transportation, a vast distance can be traveled quickly. Weather conditions have an impact on air travel, and schedule changes and delays might happen.

• Sea: Only sea transportation using specialized cargo ships makes it possible to transfer vast quantities of goods. The flexibility of sea transportation makes it easier to plan routes and schedules. It is also influenced by the weather, though less so than air travel.

• Rail: Rail transportation is the name for the slow way of transportation. Raw materials and inexpensive materials are exchanged more frequently. Rail movement is not impacted by weather.

• Road: Compared to rail transportation, the road has inferior capacity and quantity possibilities. The capacity to provide door-to-door services and the fact that road transportation is unaffected by weather are also advantages.

• Pipeline: Aids in the transportation of liquids and gases, such as natural gas and oil. Even if the average speed of the conveyance is just 3 to 4 miles per hour, it is always in operation, making it an effective means of transportation for all kinds of goods. These modes of transportation offer a particular network with specified intersections, stops, etc. Rail operations are not impacted by weather, and there are few technical issues, making it simple to utilize.

The Role of Transportation in Logistics

Transportation creates the time and place utility, both of which are necessary for money exchanges to occur. This has an impact on availability, sufficiency, and cost for various types of decisions that a corporation makes for managing transportation. Delivery to customers frequently entails a timeline that can only be obtained by using trucks. The physical characteristics of a product, as well as the price, accessibility, and suitability of transportation, are delivered, which influences the choice of a product. The connected product decision made by businesses aids in handling products that are visible in relation to the decision made regarding where the products are offered. This choice is influenced by the products' own transportation features as well as accessibility, sufficiency, and cost of transportation. Whether a company is a producer, distributor, retailer, or service organization, how and where they buy has an impact on transportation considerations. The products in question could be modules, raw materials, or finished products intended for resale. The "what and where" decision needs to take into account the commodities' features, availability, sufficiency, and cost of transportation.

• Warehouse: A system known as warehouse management is focused on assisting with daily activities at a warehouse. The technologies make it possible for the customer to control numerous warehouse activities from a single location using a mobile device, tablet used in the warehouse, or laptop used in the office. When losses occur during the various warehouse procedures, it aids in protecting them and makes warehouse operations easier and more efficient.

• Inventory Management: Inventory management is the process of keeping the ideal quantity of each item in your inventory. Production, interruption-free sales, and interruption-free customer service are the primary goals of inventory management. The main component of current assets, inventory, might result in losses or possibly the failure of the company.

• Order Processing: Orders can be placed in a number of methods, including via phone, e-mail, sales representative, and computer. Orders may occasionally be created by suppliers on behalf of their clients. If the order is being received, the business must handle it efficiently and accurately. Processing that is done well benefits the business as well as the client. Most businesses now employ sophisticated computerized order processing systems to speed up order, shipping, and billing cycles.

References

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

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