Logistics management is the process of organizing products and the flow of goods in the warehouse to reduce the time and cost of picking and shipping orders. Excellent logistics and trade management can give companies a competitive advantage.

What is logistics management in a company

Logistics management is a term that covers the planning of storage and transportation of goods to ensure their final delivery. This process includes the operations from the receipt of raw materials for the production of goods – or items shipped by suppliers – to the delivery of orders. (1)

Different departments of a company are involved in logistics. Their position in the organizational chart depends on the type of company and the importance of the supply chain in the company’s strategy. Logistics can be outsourced, integrated into the sales department or form an independent department in coordination with production. (2)

Logistics management roles are diverse and can include occupations such as supply chain technicians who provide the necessary resources to coordinate the movement of goods, operations managers who ensure optimal logistics organization, and warehouse supervisors who organize the daily operations of the logistics facility. (3)

Logistics management objectives

Proper logistics management strives to create an efficient supply chain for achieving the following goals:

• Reduce costs. The appropriate use of logistics resources leads to a reduction in costs for the company and thus to better control of profit margins. This goal can be achieved by optimizing processes.
• Reducing the delivery time of orders. Fast service with deliveries in the shortest possible time is essential for customer satisfaction. That’s why companies are using methods to speed up the distribution of goods.
• Increasing the company’s competitiveness. Logistics management goes beyond organizing the movement of goods. By prioritizing factors such as flexibility in shipping orders and control of product traceability, companies can add value and differentiate themselves from their competitors.
• Environmental protection. Green logistics is setting the agenda. More and more companies are incorporating processes into their logistics management that help reduce the environmental impact of their operations. (4)

REFERENCES

(1) https://wirtschaftslexikon.gabler.de/definition/logistik-40330#:~:text=Logistik%20als%20Flow%20Management%20zielt,Dienstleistungen)%20in%20die%20Gestaltung%20miteinbezogen.

(2) http://www.wirtschaftslexikon24.com/e/logistik-organisation/logistik-organisation.htm

(3) https://www.logistik-studieren.de/infos/logistik-oder-supply-chain-management/

(4) Fettke, Peter; Supply chain management: State of the art of empirical research; 2007; p. 430