8 Benefits of Logistics Management
8 Benefits of Logistics Management - Logistics activities are generally defined as activities to regulate and control the process of distribution and storage of goods or other resources from producers to consumers.
The industrial sector is one of the sectors that require logistics management to expedite the process of product delivery. Therefore, logistics management arrangements need to be implemented properly so that logistics activities can run smoothly, effectively, efficiently, and cost-effectively.
Besides that, logistics management can also have many good impacts on the company's business development. In this article, I will provide information to you about the objectives and benefits of implementing logistics management for your business.
Logistics Management Application Objectives
Logistics Management Application Objectives can be divided into 4 categories, namely as follows:
- General objectives: in general, logistics objectives are oriented towards achieving the main objectives of the company.
- Financial objectives: good logistics management will make the use of capital more efficient. So that it can minimize the use of excess funds.
- Security objectives: management in logistics is aimed at ensuring that the goods arrive at consumers safely.
- Operational Objectives: operational logistics management to ensure inventory and quality of goods are maintained.
Benefits of Logistics Management
Implementation of logistics management has interrelated activities and has benefits for the company. Some of the benefits of implementing logistics management will be explained in more detail in the description below.
The following are 8 Benefits of Logistics Management, namely:
1. Inventory
The main benefit of logistics management is to ensure the availability of goods. If the availability of goods is maintained, it will make organizational activities run well and smoothly.
2. Management and Administration
The administration is an activity that will always support the running of organizational processes. The purpose of administration is to record every activity regularly and systematically so that it will make it easier to find information if needed at any time.
3. Transportation
To facilitate activities, of course, a means of transportation is needed. The goal is for the distribution of goods to consumers to run well. The availability of this means of transportation will make goods quickly reach consumers.
4. Inbound Transportation Good
logistics management will make the company have to work with suppliers who have goods of good quality and adequate inventory. The benefit of inbound transportation in logistics management is to distribute raw materials to suppliers to the company.
5. Outbound Transportation
Outbound transportation is part of logistics management that is useful for distributing goods from companies to consumers. Therefore, logistics management must be properly regulated so that outbound transportation can run smoothly so that consumers can enjoy the goods that have been ordered.
6. Information from Consumers
With the implementation of logistics management, all activities will become more organized. This is to provide information when consumers do tracking to check how the progress of the process of sending the goods ordered.
7. Problem Solving
In the logistical process, there will be obstacles in the form of unexpected problems. For this reason, the benefit of carrying out logistics management is to make it easier to find harassment from the problems that occur.
An example is the problem of slow delivery due to constraints in natural conditions, the logistics side must be able to provide an explanation as well as a solution to deal with this problem to consumers.
8. Consumer Trust
Good service starting from delivery accuracy, providing detailed information, and friendly employees will increase consumer confidence. With this trust, consumers will feel interested in using your logistics services and they will spread information about your logistics by providing reviews and recommendations to people around them. This is a powerful way of marketing, namely word of mouth.
Thus the article about 8 Benefits of Logistics Management. Hopefully, this article review can add to your insight and knowledge about logistics.
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