What is logistics management?

What is logistics Management?

To understand better what logistics management is important to know what supply chain management is. Supply chain management is a process that start before physical distribution and aims to search strategically the right inputs, for instance, raw materials, capital or equipment, converting them into finish goods and direct them to the right final place.

Some companies like P&G, Kraft, General Mills, PepsiCo, and Nestlé are admired for their supply chain management.

Logistics Management is a subset of supply chain management that aims to meet customer demands and needs through the combination of two flows:

Material flow of the physical goods from suppliers through the distribution

centres to stores.

Information flow Exchange of information about the demand data from customers back to purchasing and to suppliers, and supply data from suppliers to the retailer, in order for the material flow to be rightly regulated and supervised.

To summing up Logistics management includes planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from the origin to the final destiny in order to meet customer requirements at a profit.

• ·     One example of a company with a good logistic is Zara: The brand becomes European leader in retail, providing high fashion style at a reasonable price. Which is possible, among other reasons, because of its logistics:

To know better about the logistics function and strategies watching the video: https://www.youtube.com/watch?v=4-QU7WiVxh8

References:

• ·      Harrison, Alan, A.H.,Hoek, Remko, R.H. (2017). “Logistics Management and Strategy”, Prentice Hall, 3^rd edition
• ·     Keller,Kotler, K.K. “Marketing Management”, Prentice Hall, 14^th edition

• ·     http://www.businessdictionary.com/definition/logistics-management.html

Written By: Yocana Mais