Question

*LOGISTICS - Describe the 6 below & Give examples ( IN YOUR OWN WORDS )!

• Increasing Value and Savings
• Building Relationships and Driving Innovation
• Improving Quality and Reputation
• Reducing Time to Market
• Generating Economic Impact
• Contributing to Competitive Advantage

Answer 1

Logistics management is involved with the management of resources, inside as well as outside the organization. It is a primary activity of the supply chain management. Logistics management looks after the way an inventory is acquired, the way it is stocked in the warehouse and then used to cater to the needs of the customers. Logistics comprises processes like procurement and distribution which are basically the physical movement of raw materials and finished products respectively.

The primary features of efficient logistics management are as follows:

• Increasing value and savings: As an eminent part of supply chain management, logistics management works with an objective of increasing the value of resources as well as enhancing the overall saving of the company.
  • Example: Logistics is involved with the management of resources involved in the operations of the company. Efficient utilization of resources increases he overall value, thus also facilitating the cost savings of the company
• Building relationship and driving innovation: Logistics looks after how the raw material for the production process is procured and the way it is delivered to the customers. Logistics management requires constant interaction with suppliers, vendors as well as customers. Hence it can be considered as a way of building network of the company.
  • Example: Logistics management facilitates the customer responsiveness of the company, thus increasing its overall brand power in the market.
• Improving quality and reputation: Logistics management critically monitors the quality of the raw materials used for the production process. It also handles the finished product and delivers it safely to the customers. Hence logistics can be considered as a major player which helps in improving the overall quality of the products of the company, thus facilitating its overall reputation.
  • Example: Logistics management works to deliver quality products to the customers. If the customers like the quality of the products delivered by logistics, on behalf of the company, hence they will become loyal customers of the company and the overall reputation of the company will get facilitated.
• Reducing time to market: Logistics management looks after the delivery of the finished products to the customers and the procurement of raw materials from the suppliers. Constant monitoring of the shipments is done so that the TAT of each process is maintained effectively.
  • Example: Logistics helps in timely delivery of the finished goods, thus reducing the overall time to market of the company’s products.
• Generating Economic Impact: Logistics management helps in maintaining the quality of the products offered by the company. High quality helps in roping in more customers, thus enhancing the overall business and overall economic impact of the business.
  • Example: Logistics helps in delivering orders to customers in a timely manner. This helps in roping in customers to the company thus enhancing the overall economic impact of the company’s business.
• Contributing to competitive advantage: Logistics helps in maintaining quality of the finished products and enhancing the overall customer responsiveness of the company. This helps in keeping competition at bay.
  • Example: Logistics management helps in maintaining the competitive advantage of the company by enhancing the customer responsiveness as well as reducing time to market.