FREQUENTLY ASKED QUESTIONS ON LOGISTICS MANAGEMENT

 FREQUENTLY ASKED QUESTIONS ON LOGISTICS MANAGEMENT 

WHAT IS LOGISTICS MANAGEMENT?

Logistics management refers to the acquisition, storage and transportation of inventory from its origin to its destination. It involves maintaining the inventory, resources and related information, and getting the goods to the right location at the right time and to the right customer.

Advanced end-to-end logistics management solutions drive efficiency by optimizing inventory, cutting costs and overhead, and delivering improved customer service and profits. Learn more about GEP’s supply chain management services and supply chain software solutions.

What are the 4 functions of logistics management?

To varying degrees, logistics management functions include customer service, sourcing and procurement, production planning and scheduling, packaging, and assembly. Logistics management is part of all the levels of planning and execution, including strategic, operational and tactical.

What Are the Four Areas of Logistics Management?

Logistics has evolved into a sophisticated process where businesses must effectively manage their whole supply chain. The transfer of products from a manufacturer to a distributor or an end-user is logistics management. It extends much beyond this and is an intrinsic aspect of the supply chain, which is the interconnection of procurement, manufacture, fulfillment, and distribution of goods.

Logistics management like Go Freight Hub entails the coordination of a network of transportation modes such as road, air, rail, and ocean. Suppliers, agents, freight forwarding providers, distributors, packers, and service providers are all included in this business and others. Go Freight Hub Logistics management encompasses various activities, including planning, inventory control, packing and handling, transportation, and information technology.

The Primary Four Areas of Logistics Management

In the field of logistics, there are five key components. Logistics businesses ensure that each of these components is carried out with the greatest possible precision. The following are the five most important aspects of every logistician’s profession.

1. Demand Forecasting

Logistics planning is a continuous activity that helps interface and synchronize the complete supply chain, and it is essential for achieving strong supply chain connectivity.

Market circumstances are constantly unexpected, and regularly occurring situations in which there is an imbalance between demand and supply are not uncommon. Manufacturers should provide items on a consistent and continuous basis if their logistics management is effective. For this reason, effective planning has emerged as one of the most critical components of a logistics management solution.

Manufacturers must operate very efficiently, but this is difficult to do because of the previously noted mismatch between demand and supply for the product. In such circumstances, we need storage facilities and warehouses to hold the excess commodities that have been created.

Demand planning is a critical logistical job that must be performed to ensure that client orders are fulfilled. Customer demand is satisfied, and profits are safeguarded by ordering products in the appropriate quantities and at the right price and mobilizing appropriate transportation.

2. Storage and Supplies

Because consumer demand is unpredictable, it is critical to supply excess products on hand until customers desire them. Warehouses are responsible for the storage, care, retrieval, packing, and utilization of products. They also handle the transportation of items. Systematic optimization of warehouse storage capacity, equipment (forklifts, for example), retrieval speeds, and warehousing procedures is achieved via warehouse management systems (WMS).

3. Inventory Control

Inventory control is the process of regulating the movement of items into and out of a warehouse. It determines how much inventory to keep on hand and where to store it based on targeted data that predict customer demand.

4. Transportation and Logistics Management

The use of various kinds of transportation to carry products from one step of the supply chain to the next is called logistical transportation. Long-distance supply chains may need road vehicles, freight trains, ships, and even air transportation to transport goods.

When shipping businesses or carriers combine numerous smaller shipments into a single larger package, this is called consolidation. This reduces delivery times while keeping prices down.

5. Inventory Management Inventory

Inventory management inventory control is the technique by which a corporation ensures that adequate stock levels are maintained to meet customer demands instantly while minimizing the expenses associated with storage to a bare minimum.

It comprises a primary strategy focused on existing inventory and preserving information on stock conditions, warehouse availability, and so on.

Logistics is a complicated operational technique that needs a great deal of accurate information. When it comes to maintaining operations on a tight schedule, forecasting demand, transit schedules, and inventory are all critical.

What are the 7 R's of logistics management?

In this step, we look at the 7 Rs of logistics. So, what are the 7 Rs? The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.

What are the 5 P's of logistics?

The 5 P's of logistics are an essential framework for logistics management. Your shipping and logistics company follows these 5 basic principles in order to provide you with the best service possible. The 5 P's include people, products, processes, partnerships, and performance.

What are the six 6 modes of transport in logistics?

Therefore; an essential part of transportation management lies in building an efficient supply chain from the six main modes of transportation: road, maritime, air, rail, intermodal, and pipeline. Understanding the strengths and weaknesses of each mode is paramount to building an effective supply chain.

What is scope of logistics?

The scope of logistics management involves order processing, inventory control, transportation, warehousing, materials handling, and packaging, all integrated throughout a network of facilities. The goal is to support procurement, manufacturing, and customer service operational requirements.

What is called logistic?

Logistics describes the process of coordinating and moving resources—people, materials, inventory, and equipment—from one location to storage at the desired destination. The term logistics originated in the military, referring to the movement of equipment and supplies to troops in the field.

Definition of Logistics Management 

Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.

Logistics Management – Boundaries and Relationships 

Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution--strategic, operational and tactical. Logistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology.

What are the 6 objectives of logistics?

These operational objectives, which are the primary determinants of logistical performance, include rapid response, minimum variance, minimum inventory, movement consolidation, quality, and life-cycle support. Each objective is briefly discussed.

What are elements of logistics?

The five elements of logistics include storage handling, packing, inventory, delivery, and information handling. Efficient handling of warehousing is vital for your business. Hence, all the elements require maximum attention.

Who is the father of logistics?

Augustine Warner Robins

General Augustine Warner Robins (September 29, 1882 – June 16, 1940) is often credited as the Father of Logistics in the modern United States Air Force, then known as the Army Air Corps.

What is logistic marketing?

Marketing logistics is the process of planning, implementing, and controlling the movement of materials and components from the suppliers to the customers. It also includes transferring all relevant information throughout the supply chain from manufacturing and origin up to final consumption.

What is an example of logistics?

For example, in the natural gas industry, logistics involves managing the pipelines, trucks, storage facilities, and distribution centers that handle oil as it is transformed along the supply chain.

What is the difference between supply chain and logistics?

Do supply chain and logistics mean the same thing? In summary, supply chains are responsible for the overall sourcing, processing or manufacturing, and delivery of goods from the raw materials to the end customer. Logistics is the business of moving and storing those goods between different supply chain organizations.

What are the classification of logistics?

Logistics can be split into five types by field: procurement logistics, production logistics, sales logistics, recovery logistics, and recycling logistics. Each of these is explained in detail, but first we should learn about logistics fields and types.

What is ABC inventory analysis?

ABC analysis is an inventory classification strategy that categorizes the goods into three categories, A, B, and C, based on their revenue. 'A' in ABC analysis signifies the most important goods, 'B' indicates moderately necessary goods, and 'C' indicates the least essential inventory.

What is JIT analysis?

Just-in-time, or JIT, is an inventory management method in which goods are received from suppliers only as they are needed.

What is third-party logistics?

A 3PL (third-party logistics) provider offers outsourced logistics services, which encompass anything that involves management of one or more facets of procurement and fulfillment activities. In business, 3PL has a broad meaning that applies to any service contract that involves storing or shipping items.

The term third-party logistics is often also used interchangeably with order fulfillment. A third-party warehouse provides a full range of eCommerce fulfillment services. This can include warehousing, order processing, and shipping and receiving. Many 3PL warehouses provide other services.

What is fourth party logistics?

Fourth-party logistics, also known as 4PL, is an operational model in which a business outsources its entire supply chain management and logistics to one external service provider.

The 4PL manages the relationship with different 3PL providers, in addition to other logistics tasks such as transportation, inventory management, and technology. Examples of a 4PL company include Shopify Fulfillment Network, Deliverr, and ShipHero.

What is meant by reverse logistics?

Reverse logistics is the set of activities that is conducted after the sale of a product to recapture value and end the product's lifecycle. It typically involves returning a product to the manufacturer or distributor or forwarding it on for servicing, refurbishment or recycling.

In reverse logistics, goods move from the end consumer back to the seller or manufacturer. The most common example of reverse logistics is when a consumer returns a purchased item for a refund. The returned products may be resold or disposed of permanently.

What are the 5rs of reverse logistics?

As they do, they're streamlining the five R's of reverse logistics – returns, recalls, repairs, repackaging and recycling.

What is the difference between logistics and reverse logistics?

In many cases, forward logistics includes product development, material sourcing, manufacturing, transportation to distribution centers, and final-mile delivery to a consumer. Reverse logistics refer to moving products and materials back into the supply chain post-delivery.

What are the three parts of reverse logistics?

The three components of reverse logistics management are Return Policy and Procedure (RPP), Remanufacturing or Refurbishment (ROR) and Waste Disposal (WAD). RPP is the company's approach to managing returns shared with clients and staff, which involves things such as how long a return is accepted after purchase.

What is reverse SCM?

The reverse supply chain is a process that is almost opposite of a traditional supply chain, meaning the product moves from a customer back to a vendor/supplier/retailer. Reverse supply chain management includes pickups, disposing or cleaning, sorting, repackaging, restoring, and finally reshipping.

What is the difference between green logistics and reverse logistics?

Reverse logistics can be explained as the process where the company takes back the goods for some reason, and green logistics is when the company tries to adapt environmental friendly ways to the logistics chain.