Logistics Management

Logistics management is the process within the supply chain that handles the planning, development, and administration of product mobilization, storage, information, and all related activities. What is Logistics Management? Logistics management is the process by which an operation is organized and implemented, optimizing the use of resources that were necessary for its realization. Therefore, in the field of transportation and merchandise distribution, it deals with the control of material flow and all support services so that the activity can be developed. In sum, it refers to the applicable mechanisms to achieve efficient procedures when fulfilling shipping tasks and supporting commercialization. Objectives of Logistics Management The main purpose of applying logistics management is to improve productivity, increase performance, and integrate all resources in the executed task. Some of the objectives of logistics management are: Resource planning. Cost reduction. Better product quality. Efficiency of logistics processes. Measurement Indicators To evaluate the fulfillment of objectives, some of the suggested KPIs refer to: Production cycles. Acquisitions and supply. Storage and inventories. Transportation and distribution. Delivery to the final customer. For example, regarding transportation and distribution indicators, these may refer to transportation, operational, and export costs, as well as the status of the transportation function and the distribution function. Meanwhile, delivery to the customer directly impacts service satisfaction, using metrics such as distribution times, that the goods are correct, and that they arrive in good condition, among other factors. A good way to meet all an organization's goals is to leave the comprehensive management of their merchandise transportation in the hands of a logistics service provider.