XxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxLecturerXxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx12th August, 2012. Logistics management The field of logistics management has undergone various changes over the years this is mainly attributed to the growth as well as the adoption of ICT system such as the GPS and GIS transport management systems. The adoption of such systems have really changed the way in which companies manages their supply chains. There are large quantities of resources that are moved in and out of any organization. For example the organization may get certain raw materials from the company’s suppliers and deliver the finished goods/ products to the consumers.
Logistics execute this function. Thus logistics management is termed as the part of the supply chain management in the organization that controls, plans and implements the efficient, effectual forwarding as well as reverse storage and flow of services, goods that other related information between the origin and the point of consumption or destination in the aim of meeting the needs of the customers. In simple terms logistics management is termed as all the logistics activities that act as the operational element of the supply chain such as the procurement of commodities, management of inventory, transportation management, quantification, reporting and the collection of data.
Logistics management aims at offering the best level f services to the customers, reduce the cost of operations, maintain a high level of transparency in operations and ensure that the right quantity and quality of products are made available to the customers at the right condition and at the right place (John & Langley 2002, p. 3). Effectiveness of the supply chains ensure that all the commodities are secure and they also play a great role in determining if an organization will fail or succeed.
Most decision makers direct most of their attention to the improvement of the logistics management in their organizations, this is improvement in logistics brings about important and quantifiable benefits to the organization. Well functioning logistics management systems are important in that: They increase the impact of the program in the organizationEnhances qualityImproves cost efficiency and effectiveness Components of the logistics management cycle There exist a number of companies that makes up the logistics management cycle. This essay aims at discussing in details the components of logistics management.
The components of logistics management are: servicing of customers, quality monitoring, forecasting and procurement, inventory management, logistic information and product selection all of these elements tend to be interdependent with each other and thus for one component to be efficient it needs the assistance of the other components in the cycle (Murphy & Wood 2011, p 25). Quality monitoring Quality monitoring Quality monitoring Quality monitoring The diagram above clearly shows the major components of a logistics management cycle. Fig 1: components of logistics management Servicing customers This is termed to be among the most component of the logistics management cycle.
Customer service is termed as the process through which an organization offers considerable value added reimbursement to the supply chain in the most cost effective manner. Customers are termed as the client of the organization and they determine what ought to be done within the logistics cycle. It offers an interface between logistics and marketing in that it determines the service expectations from their customers as well as their response, development of the standards of customer service, infrastructure requirements and customer service requirements.