Logistics management may be defined as follows:

Logistics management consists of the process of planning, implementing and controlling the efficient
flow of raw-materials, work-in-progress and finished goods and related information-from point of origin
to point of consumption; with a view to providing satisfaction to the customer.

Objectives of logistic management

Increase revenue

Improve operating cost structure

Reduce overall transportation costs

Improve customer service

History:

During the Middle Ages elaborate supply systems, roads and warehouses were used. Forts and castles
became storage depots supported by the economy of the surrounding countryside. During the Industrial
Revolution, logistics advanced greatly with the addition of railways and ships.

World War I further increased industrial capabilities. The internal-combustion engine gave rise to
widespread use of motor transport. World War II was characterized by dramatic advances in
transportation and communication

After World War II, logistics moved from warfare to business. Physical distribution of products began
with a focus on outbound activity. Filling orders, distribution of products, storage and warehousing,
production planning and customer service are presently important aspects of the logistics process.

Early 1900s

Fredrick Taylor, who wrote The Principles of Scientific Management in 1911 and is considered the father
of industrial engineering, focused his early research on how to improve manual loading processes.

1940s

Operations Research began when scientists demonstrated the value of analytics in the study of military
logistics problems in the 1940s as a result of the complex requirements of World War II.

1950s

the focus of logistics research was on how to use mechanization (e.g., pallets and pallet lifts) to improve
the very labor intensive processes of material handling and how to take better advantage of space using
racking and better warehouse design and layout.

1960s
A clear trend had developed in shifting more time-dependent freight transportation to truck rather than
rail. This led to the need for joint consideration of warehousing, material handling, and freight
transportation, which emerged under the label of “Physical Distribution.”

1970s

The computerization of this data opened the door to a huge opportunity for innovations in logistics
planning, from randomized storage in warehouses to optimization of inventory and truck routing.

1980s

The 1980s marked the beginning of a sea-change in logistics in the history of supply chain management.
The emergence of personal computers in the early 1980s provided tremendously better computer
access to planners and a new graphical environment for planning.

1990s

The logistics boom was fueled further in the 1990s by the emergence of Enterprise Resource Planning
(ERP) systems. These systems were motivated in part by the successes achieved by Material
Requirements Planning systems.

2000s

By 2000 most large companies had installed ERP systems. The result of this change to ERP systems was a
tremendous improvement in data availability and accuracy. The new ERP software also dramatically
increased recognition of the need for better planning and integration among logistics components.

Human Resource and logistics management

Key skills required

Financial planning

Forecasting

Cost analysis

Knowledge of international business practices

Role of Human Factors I Logistic Management

Knowledge of laws and regulations

Knowledge of logistics functions and the supply chain

Optimization of workflow

Knowledge of transportation
Contract administration and management

Regulatory knowledge and Negotiation skills

Performance measurement and quality management

Emerging emphasis on process and change management skills

Employee Engagement.

Benefits of IT application in Supply Chain Management

Streamlining—Communicate and collaborate more effectively with suppliers worldwide.

Connecting—Make the connection between what your customers want and what you produce.

Analyzing—Analyze your supply chain and manufacturing options and choose the plan that makes best
use of your assets.

Synchronizing—Synchronize the flow of your batch production by managing the capacity of vessels,
tanks, and lines-and the flow between them.

Communicating—Improve your communication and collaboration with suppliers worldwide.

Designing—Create the optimal supply chain network and adapt the network to keep pace with changes
in your business.

Transforming—Transform processes inside the warehouse and across the supply chain to meet demands
for new efficiencies.

Understanding—Get a better understanding of your warehouse labor activities and implement the
changes you need to optimize worker performance.

Maximizing—Maximize warehouse profits by using advanced costing, billing, and invoicing capabilities.

Optimizing—Optimize your day-to-day fleet performance to reduce costs and improve customer
satisfaction.

Important Tips for Effective Logistics Management & Network Optimization

Proper Planning

The first step to accomplishing a task is planning. Now, planning encapsulates various factors. It involves
procuring the goods, storage facilities, and delivery of products to the exact location.

Adopt Automation
In the age of automation, technology plays a major role in increasing the efficiency of an organization.
Automation has a vital role in the business process optimization. There is valuable software that can be
deployed in the logistics process.

Value Relations

The team is an essential aspect of an organization that is responsible for the growth. Whether it’s the
delivery guy or the warehouse manager, everyone should be perfect in their respective field of work.

Warehouse Management

Effective logistics management is incomplete without proper warehouse management. Warehouse

operations are considerably dependent on the type of goods

Efficient Transportation

Transportation department can be analyzed to decrease the expenses of the logistics firm and at the
same time, it can be revamped for faster delivery of the products. Following factors should be
considered for efficient transportation:

Measure and Improvise

Logistics network optimization is incomplete without integrating measurement, analysis, and feedbacks.
When you deploy new strategies in the system, you need to measure the output. This is important as it
intimates the success or failure of the strategy.

Conclusion

If you wish to trump over your competitors, you should adapt the latest technology and innovative
approach. The aim of effective logistics management is to improve the efficiency of the operations,
ensuring customer satisfaction, and increase productivity.

These tips and strategies are necessary for process optimization. Every logistics firm that is struggling to
boost their operations, they can incorporate these suggestions for logistics network optimization.