Types of Logistics Management
Logistics management is a broad concept that can be divided into several categories. These include:
Supply Management and Logistics
It’s one thing to have products in stock, but it’s another to have enough products in stock to meet the current demand. Demand forecasting is a practice that helps businesses determine when, where, and how much to produce.
Supply management includes the procurement and distribution of the right amount of materials, services, and products at the right time, which can be highly complex sometimes. Since it involves multiple production and distribution facilities, it’s frequently outsourced to third-party logistics service providers.
Production Logistics and Management
Production logistics and management are concerned with coordinating materials and other assets needed to produce a specific product in large quantities. It’s also referred to as production supply chain management, and it covers all steps involved in a product from the time it’s ordered until it’s placed on the shelf.
Beyond that, production logistics involves managing the cost and risk of producing goods cost-effectively. It’s all about reducing waste and eliminating redundancy. This can be done by consolidating the production of one product in a single location.
Distribution and Material Movement
Distribution and material movement refer to the location and movement of goods from the warehouse to their final destination. This includes the management of deliveries of goods to warehouses, retail stores, and end customers. It’s also referred to as logistical distribution management.
Additionally, distribution and material movement include the purchasing and restocking of goods and the shipment of goods to their final destination. It also consists of the transportation management of goods from when they’re ordered until they’re placed on the shelves.
Reverse Logistics and Product Return
Reverse logistics and product return refer to the transportation, disposition, and disposal of products after they’ve been used. It involves the planning, coordinating, and managing the transportation and disposition of unsalable or defective products. This involves coordinating with the manufacturer and the retailer to determine the best course of action.
Furthermore, reverse logistics and product return involve the disposition of the goods, including their sale, recycling, or disposal. It can be an expensive venture, especially for businesses that sell goods with a shorter lifespan.
Logistics management is a crucial aspect of the supply chain industry, and it’s the main reason you have access to a wide range of products from around the world. As the demand for goods increases, companies must manage their logistics effectively. All that matters is providing quality service, and an effective logistics management plan can achieve this goal.
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