Lecture: logistics and logistics of management

or function of logistics

TO
KASHIF SHAFIQ
BY
ANUS AHMED SIDDIQUI(32302)
Monday 3:00-6:00
INDIVIDUAL ASSINGMENT
 LOGISTICS

The internal and external movement of products and storage of goods in an organization is
known as as logistics.

LOGISTICS MANAGEMENT

Logistics management is defined as a procedure of management which connects the flow of

products, services, informations and money from the phase of raw materials to the end user. The
main goal of it is to finish the customer satisfaction with concerning only one organization of
logistics management, it is an action of supply chain management. As a result, logistics
management comprises the operations such as planning, implementation and controlling an
effective movement of raw materials, storing raw materials, and completed goods. There are
seven “R” which are connected to logistics management and those are as follows:

 Right product

 Right quantity

 Right condition

 Right place

 Right customer

 Right time

 Right price

The link of logistics:

Venders Centers of
Plants Customers
Distribution

ACTIVITIES OF LOGISTICS

Activities of logistics are classified into two kinds and those are as below:

Inbound logistics
Activities associated to the material’s procurement, shipping, carrying and storage are known as
inbound logistics.

Outbound logistics

Activities that are connected to the maintenance, assembling, and distribution of goods to the end
users are known as as outbound activities.

FUNCTIONS OF LOGISTICS MANAGEMENT

1. Costs:

It decreases the costs of achieving logistics goals.

2. Transportation:

The transportation is comprises of several means of conveying products i.e. highways, railways,
shipping canal and air route and also through the system of a pipeline. Choosing the mean of
transportation is determined on the parameters like:

 Quickness

 Price

 Reliability

 Convenience

 Ability

3. Inventory:

This function works on the demand of goods like what time to order, how much to order and
just-in-time factor.

4. Warehousing:

Warehousing is about the storing and delivering, they are different in terms of following
limitations:

 The kind of facility availed

 Material worth

 A capability to perish
5. Order processing:

This function is about delivery of the goods which are demanded.

PROBLEMS FACED BY LOGISTICS MANAGEMENT

Key problems faced by Logistics are as follows:

1. Cutting Transportation Costs:
Rising fuel prices rise the wages, and max out inflation indexes all effort in tandem to rise
transportation prices day-to-day. Approving a strategic method to remove or decrease blocks can
show fundamental in refurbishing system designs and consequently cutting down on
transportation prices. To implement these policies well, logistics managers need consistent data
on current and future orders.
2. Processing Enormous Amounts of Information:
Logistics managers have to contract with a lot of information on a day-to-day basis, as well
organizing smooth discharge of operations. The scope of their work is comprises of guaranteeing
the safety of the fleet and staff, fleet packing, cross-inspection route maps, approving fuel bills
and so on. When done manually, this can be a timewasting duty that can take your effort off from
consideration to details. Capitalizing in an automatic solution or application for information
records, fuel bills, loading and unloading records can go a long way in reorganization operations
by letting logistics managers the plenty of time to look at the finer degrees of operations.
3. Offering Segmented, Customized Services
Logistics management is revolving into a multidimensional job where managers predict to keep
tabs on numerous supply chains together. You don’t just need to provide product on time but also
offer custom-built services to different suppliers and customers in terms of parcels and charges.
The keyword for success in this situation is flexibility. Logistics operators need to suggest
personalized practices to several sections of customers. Using a software structure that can
systematize the procedure of projecting diverse services to diverse customers can not only save
time and effort on the management level but also bring accurateness in collecting information.
4. Manpower Management
Manpower is the trickiest of organization duties. You must maintain a humane method toward
the employees though keeping the best interest of your organization. That can be a complex
equation in any managerial system, but especially so in situation of logistics management, as the
drivers and staff are often positioned in different geographic sites to maintain instant supply
chain. Decentralization of duties, by assigning logistics managers in main locations, with suitable
work-order management results can help in more effective management.
5. Compliance with Regulations
Transportation rules, regulations and security standards can differ from city to city, state to state,
and apparently, from country to country. If you’re business supplying to a global customers,
keeping up with these changing rules and regulations and giving know-how to your staff with
these, can pose a serious challenge.
With the setting of business operation frequently changing, there is a change in the resultant
challenges as well. Staying up-to-date with these changes and taking proactive measure to charge
off challenges is symbol of successful logistics management.

THIRD PARTY LOGISTICS (3PL)

A 3PL (third-party logistics) provider offers outsourced logistics services, which include
everything that includes management of one or more features of procurement and fulfillment
activities. In business, 3PL has a wide meaning that relates to any service contract that comprises
storage or transporting items. A 3PL facility may be a sole provider, such as transportation or
warehouse storage, or it can be a method wide bundle of services capable of handling supply
chain management