Logistics management is a part of supply chain management; it plans, implements and controls the flow and storage of goods and services in order to meet customer’s requirements. Logistics management is a basic factor in the success of any company’s operations and has a direct impact on its bottom line. . As cargo volume develops and transportation turns out to be more confused, the need for logistics management rises.
The interface between logistics and the business of promotion is critical to the conveyance of client benefit. The major cause of conflict for logistics and marketing interface is related to 5Ps (product, price, place, promotion and packaging). Without the successful link of this, the firm may be unable to provide good customer services, resulting in to dissatisfied customer or a lost sale. For organizations to be successful in delivering higher customer value, logistics and marketing functions must be integrated because the right product must be at the right price, advertised through proper promotions, provided in right packaging and must be available at the right place.
Taking care of client demand and giving unrivaled administration is a standout amongst the most imperative advantages of good logistics management.
Proper logistics drives expanded income. Enhanced client administration can convey a good reputation to a company’s brand and produce more business, and inventory network perceivability makes open door for significant cost reserve funds in tasks.
Logistics provide, maintain and sharpen the competitive edge of an enterprise by:
1. Expanding deals through giving better client benefit
2. Arranging for rapid and reliable delivery
3. Avoiding errors in order processing; and so on.
Logistics management results in cost reduction and profit maximization, primarily due to:
1. Enhanced material handling
2. Safe, speedy and efficient transportation.