Logistics Management and Essential Elements Involved

What is logistics management?

Logistics management is an essential component of the supply chain designed to exercise control
over the movement of goods from source to the destination.

The process of logistics management begins with raw material procurement and ends with
customer satisfaction after proper delivery. It as a set of elements which links the gap between
producers and consumers.

The main 6 functional elements of this process are defined as follows:

1. Planning

Planning is considered as the most essential element before starting the logistics process.
Interactive planning helps in effective organisation and management which ensures that all the
logistics requirements are fulfilled. Through planning, the data of previous times is analysed by
keeping the needs of customers in mind. It includes:

 Selecting an appropriate vendor

 Choosing routes

 Discovering the delivery method, etc.

2. Human Resource

A knowledgeable staff is among the crucial elements of logistics management. Whether it is a

delivery boy or an inventory manager at the factory, they all deserve to be properly trained and
well-versed with their duties and responsibility.

A logistics manager should be well versed in communication skills to handle any adverse
situations and maintaining good relationships with various contacts in the industry. It can be
beneficial in tapping multiple business opportunities.

3. Technology

Technology plays an important role in logistics management by speeding up the process and
reducing human efforts. Nowadays, no logistics can be effective enough without including
technical things and automation in the whole process.

Technology can help in real-time tracking of goods and raw material. For example, it can provide
the following information regarding the movement of goods:

 When were goods dispatched from supplier

 Receipt of goods in a factory

 Delivery to the customer

4. Procurement, Distribution, and Delivery

This category includes the timely supply of all the support pieces of equipment and containers
which are necessary to support the packaging and distribution of principal goods. It includes
maintenance and support activities which are essential for initiating and sustaining
transportation requirements.

5. Equipment

It includes identifying the needs of hardware, software, and software development, etc. The
demand for equipment depends upon the human factors and skills of employees operating the
system. Some of the equipment required in the process of management are:

 Computer resources

 Condition monitoring equipment

 Special test equipment

 Maintenance fixtures
6. Monitoring

Logistics process is incomplete without feedback and analysis to make it better. Whenever new
strategies are implemented to the system, they should be monitored regularly to cut down the
unnecessary activities.

It is important to measure the outcome of various implementations to know about the success
and failure of implemented strategies. These feedbacks help in analysing and improving. New
ideas and suggestions from the employees should also be recorded properly to reveal any flaw in
the system.

Conclusion

So, these are the elements responsible for effective logistics management. Every element plays
an important role in logistics management hence should be taken care of. The company
implementing logistics management by there own should focus on collaboration between theses
elements rather than competition.