• Bacsun

Logistics Management

Logistics management is the part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption to meet customer requirements.

Logistics softwares were designed to optimise and time and resources allowing companies to gain better control of their logistics administrative and operational environment.

The five elements of logistics are:

  • Storage, warehousing and material handling

  • Packaging

  • Inventory

  • Transport

  • Information and Control

Logistics could be defined as a combination of 7 rights, where 7 rights include right product, right price, right quantity, right quality, right place, right customer and right time.

Right Product:

The product should be same as what consumer has ordered which is a basic requirement of placing orders by a customer. Placed order should not substitute with other products.

Right Quality:

The product quality is another key component in logistics. There are different standards for different goods. Or there is a quality which customer demand for the payment they make in return. Quality of a product should not dissatisfy customer.

Right Quantity:

The right quantity is the volume a customer has ordered. Receiving less than or more than the ordered quantity could become a burden to the customer.

Right Price:

The right price is the payment done for the value customer receives with procuring a product. Right price depends on the other 6 rights of logistics.

Right Customer:

The ordered products should reach the right customer as failing to do so it could lead to logistic chain set-backs causing unnecessary costs and stock delivery issues.

Right Time:

Right product should be produced and delivered at the right time to cater the demand hence right time is critical in Logistics. The happiness of consumers and the long-term partnership is only possible if the goods delivered to consumers at the perfect time. Managers tasked with creating a tracking system and working with the distribution team to get the items shipped before the deadline. Customer satisfaction is the key to success.

Right Place:

The next important aspect is that they will give the right material to the correct location. Supply chain administrators should ensure that they have competent and qualified logistics personnel to deliver the content at the proper place. Managers should build a comprehensive position tracking distribution system so that both consumers and suppliers should monitor the products at the exact location & deliver it to the right spot.

3 views0 comments

Recent Posts

See All