Logistics Management: Why It’s Important

6/10/20 10:30 AM

When thinking of logistics, consider it to be the part of supply chain management that coordinates, plans, and controls the efficient flow and storage of goods, services, and related information pertaining to orders to meet consumer requirements. Logistical processes are what keeps the grocery stores filled and your favorite soda on the rack, which is why having an adequate and efficient logistics operation is a must for your operation. 

Logistics Management: Why It’s Important

Logistics are such a crucial component to any operation and are by far one of the most integral components of any supply chain, especially during this time of instant gratification and quick delivery fulfillment. Without logistics or logistical operations, there would not be the quick and efficient distribution needed to make consumers happy. This would all also not be possible without a logistics management team overseeing the entire process. With a poor logistics team, your operation will fall short, but with adequate logistics management - you can quickly find yourself at the top. 

Why Logistics Management is Important and Essential 

The reasons behind why logistics management is important and essential to your operation includes the following reasons: 

  • Customer Satisfaction Increase - Consumer satisfaction is by far the most important aspect within any operation, considering that it is what pays the bills at the end of the day. Consumers demand better service, and this mandate creates a need for shippers to provide fast, accurate, and quality services. A good management strategy would be to aim at consistent optimization of transportation processes and eliminate any potential disruptions within the overall process. This will have direct impact on your customer’s experience and will ultimately aid with generating more business over time. 
  • Visibility/Insight Cost Savings - Visibility within supply chain is an absolute must - which is why establishing thorough insight can provide exceptional benefits. Utilizing an Advanced Transportation Management System (TMS) can aid with analyzing historical data and tracking real-time movement of goods, thus allowing managers to utilize this information to improve their process and avoid any potential disruptions. 
  • Cost Savings - Managing logistics on a proper level will give a company control over inbound freight and keep inventory at optimal levels, which can cut cost significantly over a period of time. Cost savings are by far one of the main advantages of having adequate logistics management, due to the reduction in waste and increase in profitability within the operation. 

A software that can aid with scheduling and production pertains to PlanetTogether’s Advanced Planning and Scheduling (APS) Software. PlanetTogether’s Advanced Planning and Scheduling (APS) Software enables manufacturing operations to be able to adequately manipulate areas of production that are in need of efficiency enhancement and ultimately reduce waste within the operation. APS software has become a must for modern-day manufacturing facility that are seeking to maintain a competitive edge within their industry.  

Advanced Planning and Scheduling Software 

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

  • Create optimized schedules balancing production efficiency and delivery performance
  • Maximize output on bottleneck resources to increase revenue
  • Synchronize supply with demand to reduce inventories
  • Provide company-wide visibility to capacity
  • Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.

Related Lean Video

 APS Resources

Topics: logistics

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