Fundamentals of Logistics Management

Logistics management allows the company to competently get, use, transform, distribute, store and guarantee the optimization of its resources. The product, raw material, or goods and services handled in accordance with the design of logistics management are the most important resource of a company.

It also allows the company to track the product in all its phases , production, transportation, storage, among others. If all the steps are carried out in an orderly manner, the company will be able to meet the demands of its customers, as the demand will be met in a timely manner, which will result in its economic benefit. The implementation of a well-designed logistics and its optimal management in the operation and control of production processes, control, economy and profit of the company will lead to a successful organizational strategic plan.

David Goodnight Texas rightly says that the basis or the main foundation of a proper logistics management is and must be the speed of response. That is, the company can respond to its customers in the shortest possible time, obviously to achieve this it will be based on its logistics management, meeting the response times established or expected.

If the control of production, location, quality, distribution, inventory and delivery is strict and attached to the logistics, all resources of the company will be optimized and this indicates that it will represent savings and profit. The market in its constant progress has demanded the development of new concepts of economics and marketing, offering a kind of guide for logistics management to avoid prolonged storage or bulky inventories of goods.

One must be aware that any kind of event that hinders or slows down the economy of supply chain will hinder logistics management. That is why one must avoid the following aspects:

• Faulty processes such as repetition of the similar process.

• Static inventories such as complications because of lack of rotation and/or mobility of stored goods.

• Misuse of resources and/or poorly anticipated costs of inputs or merchandise.

• Compliance with excessive legal, fiscal or bureaucratic requirements.

Happy Customer: A good, efficient and easy-to-use Logistics Management system enables the company to make deliveries with greater speed and fewer breaks, which will make it more dependable for its clients.

• Control and audit: If the processes are clearly defined and carried out, the company will be able to assess not only the mechanisms but also what needs to be improved in them, offering the customer a guarantee of the quality of the product.

• Optimization of Economic Resources: If the company can evidently and precisely track all the processes of its operation and production of its goods or services by managing them appropriately. That is, from the raw material to the final product, it will avoid postponements in all the steps involved. Thus, the costs will be within the estimated without causing additional expenses, that is, if people meet the guidelines in logistics management, the company will be able to optimize its expenses and it will be possible to save.