Businesses in the present times have to focus a lot in managing their logistics so that they can run their effectively and profitably. Efficiency of management is the key to success, especially in supply chain management. There are several factors which come into play in effective logistics management. They are enterprise automation and perfect coordination. Any reliable ERP development company helps you develop effective automation solutions.
What is logistics management?
Logistics management can be said to be a part of the supply chain management that centers on the business of shipping cargo with its needs. It also guarantees the suitable application and control of the commercial of shipping merchandise that will offer the most proficient and effective results.
Logistics management is used to meet client demands through the design, control and application of the operative movement and storing of related statistics, merchandises and services from source to destination. Logistics management helps corporations to cut expenses and upsurge customer service. Currently, businesses require logistics management software if it wants to abundantly gain from these benefits.
The Council of Supply Chain Management defines logistics management as, ‘ that part of supply chain management that designs plans, implements and controls the proficient, effective onward and backward flow and putting away of goods, amenities and related information between source and destination to meet clients’ requirements.’
Difference between logistics and supply chain management
Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. SCM represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed to direct these undertakings.
Logistics management is often confused with supply chain management. While, supply chain management has much broader objectives and actually embraces logistics management. Supply chain management (SCM) includes inter-enterprise, multi-dimensional and multi-functional processes that target the whole thing from the supplier’s incoming freight to the end customer. Logistics management (LM) is the more real-world, proactive part of the supply chain where merchandises are transported into a facility, appropriately stored, moved and conveyed out. Therefore, it can be said that LM concentrates on short-term procedures and while, SCM is focused on the long-term.
Role and function of logistics management in business?
Logistic management systems make the most of on making progresses in freight management, load building and optimization, mode and shipper selection, merchandise rating and assessments, plus load tendering and actual time logistics. Logistics companies that use this software gain a viable advantage over their competitors, as it permits them to productively deal with cost burdens such as rising energy prices, increasing loads as an outcome of customer demands, and the tendency towards smaller, more recurrent dispatches. These lead to more regular and timely distributions, which then increase in gratification and returning clients.
A company that develops ERP software will help you to create effective technological solutions to assist businesses of diverse domains.
How to create an effective logistic management system?
Planning: The first and the most important is to plan effectively taking into consideration factors like- procuring the merchandises, inventory facilities, and distribution of products to the particular location. Moreover, the other factors are – time, conveyance, and the expenses. A supply chain functioning should be able to formulate the map for the complete operation. The main reason of planning is to accomplish maximum tasks in the least conceivable time maximizing profitable returns at the same time.
Automation process: Technology has a very vital role to play in increasing the efficiency of the entire logistics set up. Software and applications focused on upgrading the logistics management can be deployed to run the operations flawlessly. This will help in providing free flow of information from the supplier to the end of the clients by integrating timely updates regarding transportation of goods and commodities. It gives a three-fold perspective on the movement of freight:
- Procuring the required freight from the warehouses
- Dispatching the goods to the clients from the supplier end
- Successfully delivering the goods at the client’s destination
This automation process helps in saving time and expenses involved in the manual handling process and the possibilities of errors are also eliminated. Moreover, such software also have the facilities of allowing financial data on transaction that take place between the supplier and the customers allowing ease of operations. Therefore, it is advisable that logistics firms should employ technological solutions for increasing productivity.
Warehouse management system: A warehouse management system (WMS) is a software application, planned to support and augment warehouse or supply center management. They enable management in their day-to-day planning, consolidating, staffing, guiding, and controlling the employment of available resources, to transfer and store materials into, in, and out of a depository, while supporting employees in the performance of material movement and putting away in and around a warehouse.
Transportation: The efficiency in managing the transportation of goods and commodities is the vital factor. The department handling transportation should try to evaluate and work on measures to minimize expenses of the logistics firm at the same time, making sure that they ensure quick and swift delivery. The following aspects should be deliberated for efficient transportation:
- Determining the best transport route: The best route that should be opted for should be the shortest as well as the safest. This will helps in saving time as well as money.
- Using GPS navigation systems: The GPS or Global Positioning System navigators help you to track the vehicles in the transit route. It will help you identify and track the locations where the vehicle transporting the freight is currently and also making possible for you to identify what is the duration required to cover a particular stretch of distance. This will constantly help you to manage not just timely delivery but also give you constant status updates in case the vehicle meets an accident or stuck in unwanted traffics. The GPS system also has the facilities to give you updates on possible road blockages and jams due to natural disasters like landslides and heavy traffics too making it possible to determine the nest best suitable and quick route.
- Cost-effective packaging: Cost-effective packaging of goods and commodities should be employed to guarantee minimal investment and safety of goods as well. Heighten the packaging so that it dwells in less volume and it does not surge the weight of the package at the same time.
Regular and timely evaluation: It is very important that the logistics network is evaluated and measured on a timely basis taking into account the needs for timely updating, analyzing the needs and generating feedbacks. While you deploy fresh strategies in the arrangement, you need to estimate the results which will help understand if the strategy adopted is moving towards success or not.
Tools of measurement tools, applications and software should be combined that easily determines and categorizes the information as per the prerequisites. The future planning is profoundly dependent on the estimated information. Examine the metrics associated to different operations:
- Cycle time metrics
- Cost metrics
- Service metrics
Giving importance to feedbacks: The constructive feedbacks always help in improvising. The ideas and recommendations of the employees should be documented periodically. This guarantees that you breed a pool of concepts and at the same time, it reveals if there exists any flaw in the system.
Therefore, if you wish to create a logistics management system that guarantees profit look for the technological upgradation provide by the leading ERP development company.