Posted by PLS Admin on July 10, 2014 at 3:30 PM

Importance-of-logistics-managementLogistics management is an integral factor in the success of any manufacturing company’s operations and has a direct impact on their bottom line.

How is Logistics Management Defined?

“Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse 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.” – Council of Supply Chain Management.

In its’ most basic form, logistics management is the control and supervision of the movement of goods, however, the scope of logistics management can be far more reaching than that.

The sphere of logistics management involves a multitude of different factors.  Transportation management, freight and inventory management, materials handling, and order fulfillment are just a few of the factors that must be considered when it comes to logistics management.

Many companies look to third party logistics providers (3PL’s) for help as this somewhat simple concept can often become very complex and not so easy to execute.

How do you know if a logistics management operation is efficient?

An effective logistics management operation should yield 4 key results:

  1. Increase revenue
  2. Improve operating cost structure
  3. Reduce overall transportation costs
  4. Improve customer service

When the stars align and all of your logistics processes are streamlined, you should expect to see these results where they matter most: your bottom line.  

To learn more and see firsthand how a 3PL can help you manage your logistics; contact us today for a free Transportation Cost Analysis.

Topics: Logistics, 3PL, Management

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