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Advantages of logistics and supply chain management.

Adv of logistics management:

Desired quality of service is achieved at lowest cost:- by using proper methods the quality of the product and the service can be achieved retained at the lowest possible cost. Leads to customer satisfaction: through superior customer service. Logistics addresses top delivery and flexibility which leads to customer satisfaction through superior customer service. Integrates logistical activities:- in conventional management environment various activities of logistics work in isolation under different management functions. Logistics functions of management brings all this activity under one umbrella pulling down inter-departmental barriers. Competitive edge:- better tech therefore better log therefore competitive edge more competitors and u r better and people would come to u cause u would provide stuff faster. Support critical functions like operations and marketing:Strong logistics support enables the company to move towards just in time production system for survival in a highly competitive market.


Reduced inventory scrap – reduce scrap write-downs with better quality control and planning/forecasting.

• Reduced cost of goods sold (COGS)

increased revenue potential. and shorter cash-to-cash cycles Supply Management delivers multiple replenishment strategies such as customer scheduled shipments. improved user productivity. Improved production exception handling – better plan and manage production. thus ensuring maximum facility throughput. leading to material cost savings. reducing errors. decreased inventory. vendor-managed inventory. reduced inbound supply chain and logistics costs. improving quality. • • • Contributes to competitive advantage Managing supply risk and reducing costs while maintaining revenue focusEach of these areas of excellence individually and collectively help to manage the supply risk inherent in today’s global supply chains. Kanban. eliminating backorders. The resulting benefits can be measured in reduced direct material spend. and other justin-time programs. Supply Management drives toward perfect parts availability. increased compliance. . Improved customer retention and increase customer loyalty – improve customer satisfaction via improvements like streamlining and reducing errors in the invoicing process. helping to reduce exceptions and the associated resolution costs.• Improved strategic sourcing – strategically source direct and indirect materials and better manage vendors. reducing time to receipt.