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Logistics Management | XL Logistics Blog

What Is Logistics Management?

Posted on 30. May, 2013 by in 3pl

Logistics is the systematic process of storing and transporting supplies. The degree to which a company can effectively and efficiently perform these tasks can distinguish it in the industry. These tasks of transference are a division of the larger supply-chain-management scheme, which tracks information and inventory across companies and among business processes.  Efficiency, cost and accuracy are the main factors that drive performance in logistics management.

Logistics management involve the transportation of products between members of the supply chain system. The organization of the tasks throughout the network is done by professional planners, which usually reside at each location. Validating, routing, staging and coding is coordinated with a network of real-time systems that examines the most effective routing that can be attained given the time, date and cost constraints.

Companies usually have worldwide suppliers, and the cost of receiving and positioning rare or critical materials can be very expensive in supply chain system. One of the biggest challenges in the transportation of products is not the routing but rather managing its cost.  The objective of the route planner is to achieve these tasks in the most cost-effective manner, utilizing a range of software applications that simultaneously analyze transportation estimates from a group of carriers, using different modes of transportation.

Quality in logistics can be determined by three factors: the condition of the product upon arrival, the carrier’s safety record, and the number of destinations completed on-time. Often, companies inspect the conditions of products received from suppliers prior to acceptance. This is because problems can occur within their manufacturing plants later that are hard to identify after assembly. If acceptable levels are not maintained over time, service cancellations can occur.

If your looking for a quality Logistics Management team, continue reading here!

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