Technology has been developing and progressing with great pace. Today, technology plays a very vital role in almost every field. This advancement has made lots of works for the humankind extremely easy. Education, defense, automobile, mobile phone technology, eateries, pharmaceuticals, and medicines are some of the most technology-driven fields. But the most important part for any industry is planning and its implementation. It includes the supply of components, planning, organisation, and effective implementation of those planning. This is called logistics. A logistics management system is indispensable for a successful business organisation or company.
What is logistic management system?
A logistics management system is a supply chain management system that controls and regulates the acquisition of raw materials and components used in manufacturing, planning, and implementation of that planning for better customer service for a company. It starts with the accumulation of raw materials and ends at delivering goods to the destination. There are lots of planning and organisation that are involved in between these two stages. The more accurate the logistic management of a company, the more profitable its business will be.
What are the steps involved in logistics management system?
Logistic management is a compilation of lots of processes and these together form a system. A logistics management system is a gradual and progressive system in which all the processes are interdependent. The steps involved in the logistics management system in India are:
- Choosing the apt vendor: The manufacturing process for a company starts with acquiring raw materials and tools for the manufacturing process. For this purpose, it is important to choose an apt vendor for the supply of these raw materials and tools. The vendor must have the capacity to fulfil the demands of the company. It must have adequate transport supply facility if needed. Correct pricing is also a key factor in choosing an apt vendor.
- Choosing the route for transportation: The next thing which follows after choosing the vendor is the correct transportation route. The correct route for transportation is important to minimize the total cost of manufacturing. The important factors which go into opting a correct route for transportation are a total cost of fuel, duration of the journey, good connectivity of road and good weather in some cases.
- Choosing correct software and IT tools: The manufacturing process starts after the components and materials have arrived. Manufacturing requires IT tools and computerized mechanism which works on software. Therefore it is important to choose the correct software and IT tools. They should be efficient, easy to use and easy to maintain.
What is the benefit of the logistics management system?
A logistics management system is of great advantage for business. It controls and regulates the manufacturing process of a company. This means that it deals with vendors, fuel, transportation, timely delivery, an audit of cost, etc. All these things account for the major portion of a company’s capital. Therefore it is necessary to adopt an effective logistics management system that would minimize these costs for optimum profit. It also helps the company to manage rising fuel and transportation costs, prices of raw materials and the availability of workers.
What is the latest trend in logistic management system?
Use of air-cargo and rail networks for shipping and transportation has increased a lot as compared to road transportation.