Logistics Management

By: NHK Cooray

Department of Business Management
Rajarata University of Sri Lanka
Introduction
Efficient logistics is a key factor in ensuring the success of an
organization from ensuring that the organization has all that it
requires to produce results to ensuring that customers are satisfied.
Logistics
• This is the management of the flow of goods, resources and information
between the point of origin and the destination (point of consumption).
Logistics is the process of planning and implementing the efficient
transportation and storage of goods from one point to another.
• It ensures that all materials and personnel are available on time and in
the right place to ensure that a business objective is accomplished.
• Logistics thus implies having the right type of product or service at the
right place, at the right time, for a right price and in the right condition.
• Logistics can be looked at as a subset of supply chain management
which ties into project management by ensuring timely completion of a
project
Logistics Management
The aim of Logistics Management is to ensure supply to the customer
the:
• Right product
• Right cost
• Right quantity
• Right quality
• Right place
• Right time
Components (activities) of Logistics
• Transportation
• Supply.
• Inventory planning and management.
• Warehousing.
• Packaging.
• Order processing
Objectives of Logistics Management
• To choose the most effective transportation routes
• To identify the best delivery method
• To seek continuous quality improvement
• To minimize the cost of transportation
• To facilitate quick response to customer requirements
• To improve customer service
• To minimize damage to goods
Major Functions of Logistics
• The major functions in logistics are:
• Transportation.
• Warehousing.
• Material handling
• Inventory Management
• Transportation management focuses on planning, optimizing and
executing the use of vehicles to move goods from one place to
another.
• Warehouse management includes functions like inventory planning
and management and order fulfillment.
Transportation Management
Transportation management planning
involves the movement of people, • Cost optimization
materials and equipment from one
• Resource optimization
place to another. It involves:
• Organization of quotes
• Route planning
• Consolidating requests
• Freight payment
• Improving accountability
• Route optimization
• Improving delivery
• Operations execution
capabilities
• Communication
• Transportation order
Warehouse Management
Warehouse management involves the control and administration of
warehouse operations where equipment, vehicles and goods are
kept.
Warehouse management:
• Improves flexibility and responsiveness.
• Eases activities like orders and shipments
• Secures the expensive equipment
• Labor management
• Ensures that equipment are kept in check
Inventory Management
This is the process of ordering, storing and using the inventory of the
organization with regard to the type and amount of material in a
storage facility.
Material Handling
This deals with the loading, offloading and the movement of materials
at the point of origin, in transit and at the point of consumption
Phases of Logistics Management
• Inbound Logistics
• This is the movement of materials from the point of origin to the
point of production.
• Outbound logistics
• This is the movement of finished goods from the point of
production to the point of consumption.
• Reverse Logistics
• This is the movement of damaged goods from customers back
to the point of production
The Logistician
The Logistician is an expert in logistics. The logistician coordinated
the organization’s supply chain.
Roles of a logistician.
• Find the cheapest and fastest way to transport goods
• Make suggestions to customers regarding improvements
• Keep informed on the latest advancements in logistics technology
• Strive to determine what customers needs are and ensure that
they must meet them
• Assess logistics functions and work to improve them
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