The Role of Logistics Management in Supply Chain Management

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The growth of globalization and increasingly competitive business practices have influenced businesses to create more value and deliver it to their consumers causing ascension of logistics management. Logistics management is part of the supply chain management system, and it involves the administration of logistics procedures to achieve useful and well-organized transportation of products and personnel. The Council of Logistics Management defines logistics as the planning, execution, and scheming of the proficiency and effectiveness of stream and storage of goods, services or any connected information from the point of origin to the moment of consumption for the reason of matching the customers’ prerequisites (Schönsleben). Logistics management is, therefore, is concerned with the modeling and dispensation of systems to administer the flow of product, work-in-procedures and completed inventory to sustain the business strategy.

Logistics management is concerned with transportation, warehousing, third and fourth party logistics. In transportation, it is involved with improving the efficiency of the modes of transport to develop customer satisfaction — warehousing, on the other hand, dives in receiving, storing and shipping products along production locations. The third and fourth party logistics touch on the outsourcing of various logistical functions to organizations that specialize on specific tasks (Schönsleben). Third party logistic institutions perform one or more logistic functions while the fourth party contributors are specialists that provide wide-ranging contractor services by handling full logistical processes of a company.

Logistics management aims at cost minimization, quality service delivery that outperforms competitors and successful implementation of marketing processes. Further, it aspires to make a profit for the business and pooling risks in the form of warehousing (Schönsleben). The solution to successful logistics management is thus an emphasis on the integration of logistics activities, collaboration, harmonization and information sharing across the supply chain.


Works Cited

Schönsleben, Paul. Integral logistics management: operations and supply chain management within and across companies. CRC Press, 2016.

September 04, 2023

Business Economics

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