Why Logistics Management is important in Supply Chain

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Globalization has not just brought the nations in connection with each other but has also increased the cultural exchange through products and ideas. Different products' demands have increased that may include items of all sorts; from edibles, vegetables to the spare parts of vehicles and military equipment. The traditional supply chain has evolved and is becoming more and more complicated with every passing day. 

The products need to be transported in different parts of the world regardless of the geographical constraints, including weather, roads, etc. Besides having the business of product manufacturing, the organizations also need to find ways to ensure a safe, timely and secure supply of those goods. The logistics management team then manages this supply chain to ensure that the concerns mentioned above are addressed, and the products reach the customers. 

Logistics management manages and conducts the movement of goods. From the confirmation of order to its fulfilment, all is handled by the logistics management. This whole process involves various complex steps, including the management of transportation, inventory management, transportation material, etc. Logistics management aims to efficiently carry out these functions to build a customer's trust and improve the cost structure to benefit the company. 

 Logistics and freight forwarding companies can provide various services, including warehousing, transportation either by sea or air, storage facilities, and advice in preparing the documents, such as ocean freight services, which provides the details of the policies and area-specific shipping prices of the freights.

Logistics ensuring the timely and, safe and sound transportation of the goods to the customers form the basis of any company's success. Logistics management bears a lot of importance in the supply chain as it helps achieve: 

• Customer satisfaction
• Timely delivery
• Reduction in cost
• Improvement in the efficiency
• Create value
• Profitable results

Benefits for Supply Chain Managers:

The supplying of material from the origin point to the desired location is a very complex process, and a little negligence could result in a whole inefficient supply chain process. Logistics is the one way to tackle the possible problems effortlessly that could arise at the time of the process. A good logistics strategy should be efficient, clear and measurable. It helps in prevention from issues occurring and results in a desired positive company result annually. 

Timely Delivery:

Now and then the customer demands are changing constantly and keeping in view these demands the logistics within a supply chain management is changing. This change in logistics creates more trust and value for the customers. For example, customers frequently order products through their iPods, iPhones, Smartphones, Laptops and Tablets and expect to receive their product within 24-48 hours. To meet these customer requirements and expectations, companies have to improve the logistics of their supply chain according to the required needs which would result in acceleration of the order fulfilment and quickly ship the item to the customers through the most reliable, but the cost and time factors the company should be kept in view. Companies create a whole procedure that tells each component of the logistics model to focus on the specific job; this would result in cost reduction efficiently resulting in higher customer satisfaction. Logistics helps companies understand the key points, core processes and long-term goals of the company.

Creating Value

Logistics management through efficient strategies creates value for customers. The strategies are an important element in logistics management that shape the entire process. The availability of the products helps the customers access those products, thus adding value to the logistics. 

The logistics management adopts flexible, and thorough data and analysis improvements are made according to the needs. The inventory management, transportation, and storage are handled efficiently after careful analysis; thus, it saves the company from an overproduction of the products and loss.

Customer Relationship:

Logistics management plays a vital role in building customer relationship and also in building trust among people. Reliability is one of the main reasons that attract the customers and logistics management makes sure that all the operations from storage, warehousing, etc. to delivery are carried out without any sorts of mistakes so that the trust remains. This, in turn, makes the customers loyal to that organization.

Saving the Cost:

Managing logistics through proper strategies will give the company control over the inbound freight, create a balance in the inventory management, make the process of reversal of goods easier by using efficient transportation modes thus reducing the overall cost significantly.