Responsive logistic management:

Responsiveness can be identified as the capacity of the supply chain to react deliberately and
timely to customers’ demands or changes within the marketplace.
1) In responsive logistic management production is excess all the time to meet customer’s
demand which ends up in higher cost.
2) Many smaller plants are located in order to deliver goods to customer timely, this also
increase cost.
3) Fast and versatile mode of transport is being used for quick delivery.
4) Primary goal is quick response.
5) Strategy of having Buffer inventory is applied.
Effective logistic management:
Logistic management is said to be efficient if the main focus is on cost reduction and resources
are also not wasted on non-value added activities. It ensures that raw material reach at
manufacturing production facilities on time, it prevents the need to source additional materials
from alternative sources, subsequently avoiding higher prices and preventing lower profitability.
1) Greater supply chain flexibility.
2) Lower inventory, transportation and warehousing and packaging cost.
3) Higher revenue
4) Improved customer service
5) Increase performance and profitability
Challenges in logistic operations:
The main challenges faced in 21st century in logistic operations are:
1) Cost of fuel: Prices of fuel increase the cost of transportation which results in increase of
expense.
2) Improvement in business process: Bringing advancement into the business for staying
on top is also a key challenge.
3) Customer service: Customers seems to be unwilling to pay extra for fast delivery and
shipping.
4) Shortage of driver and retention is also a minor level of challenge.
5) Government regulation: Fulfilling all regulation in service, accountability, compliance
and safety will be a real hassle.
6) Economy: Inflation is rising which is also a challenge.