Explore BrainMass

The importance of logistics management

My task is to show how the business operations in an organization can be brought into harmony, generating the smooth flow of information and materials throughout the value network for the benefit of customers and the competitive success of the organization.

- The importance of effective logistics management in smoothing the flow of materials, reducing inventory costs and enabling responsiveness throughout the supply chain.

Solution Preview

Logistics management refers to the process of planning, implementing and controlling efficient low of materials from the point where they are raw material to the point of consumption in such a way that customer requirements are satisfied. The entire aim of logistics management is to fulfill customer requirements by making use of relevant manufacturing and marketing operations. Logistics management encompasses all materials flow management from purchase of raw materials and other components, transport of materials from suppliers to work location, receiving, inspection and storage of materials, flow of materials through the manufacturing processes and finally the flow of material to customers ("Logistics management", n.d). Hence, apart from physical flow of materials, logistics management is also concerned with information flow related to documentation and reports of material flow from raw material to final product. It involves procedures to minimize cost while providing customers with what they expect. Logistics consists of following activities:

1. Order Processing: The time to process an order contributes directly to the lead time and hence affects total costs

2. Transportation Management: This step involves arranging for firm's own ...