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In every kind of business issues to do with the delivery of the commodity is essential because it is a means of satisfying the interests of customers fully. When it comes to Logistic Management, the same situation applies because it involves the flow of information, goods, and services from the origin to the point of consumption. This scheme is a network where you must engage all components to generate a functional business operation.
What is the difference between Logistic Management and SCM?
Many people confuse logistics and supply chain management (SCM). SCM is the broad scope of the procurement field, while logistics is a part of supply chain management. SCM is mostly concerned with the order processing of the consumer and all activities that are done to convert raw material to a finished product per the customers’ desires. It also entails doing all the events that satisfy the needs of a particular client. Therefore procurement and logistics are just some parts of the logistics.
In that case, when thinking about Logistics management think about the supply chain as a whole because all components of supply chain and logistics are somehow correlated. You may have come across a delivery guy at your door. However, have you ever taken time to meditate on how you received your order what was the process? I bet if you ever thought about that particular issue logistics and SCM are some of the aspects that could come in mind.
Logistic management cannot exist in isolation. However, it must comprise some key factors that relate to its operations. Therefore those factors are the critical players to a successful logistical mission. The word management means planning, monitoring, and controlling all activities that relate to the delivery of a product to the consumers. The following are some of the components of the logistics.
Components of Logistics
The presence of raw materials and finished goods are examples of the constituents. Since logistics comprises of acquiring items from the origin, therefore there must be raw materials shipment. These items are the ones that are converted to the finished products. Effective adjustments have to be done for the supply of those materials. The right mode of transport should is one essential adjustment in acquiring those items. Moreover, these merchandise are supposed to be fashioned in a customized manner.
Customers
Logistics cannot exist if there are no customers. Therefore these persons initiate the logistical act. They order some items and give the timeline and conditions needed in those properties. It is upon the service provider to meet those timelines accordingly. Information correction and data processing of the consumers is effective in accomplishing a successful delivery. Always recognize your clients as the most crucial entity in that operation. Moreover, you ought to commit all your skills and abilities to meet their requirements fully.
Suppliers
Suppliers are vital in the shipment of products. They are the individuals concerned with meeting their clients’ specifications by planning for fruitful delivery of items to the consumers’ location. and they control all activities related to logistics and plan on efficient shipment methods of merchandises. They do initiation of the flow of materials and raw materials in conjunction with the customers.
Transportation
Transportation is also a crucial aspect related to Logistic Management. When you see transits and trucks supplying goods, know that they are accomplishing logistical measures. It is upon you to choose the best-transporting servicers. These carriers’ companies have to transport the consignment with much care. Check on their insurance policies, track record, expertise in transiting the goods, and their accreditation in operating in that field. Be eligible for choosing the best mode of transport, which is efficient. It is advisable to decide to use a multimodal and intermodal transport system that is fast, flexible, and efficient in the shipment of assets
Storage
Consider the storage of the commodity, which is an essential part of Logistic Management. Sometimes you need to store goods in specialized facilities called warehouses. These premises are furnished and equipped with special conditions for keeping products. Take an example when delivering perishable products like flowers; these goods are valuable and you must preserve them adequately. For that reason, they require refrigeration commodities in maintaining the products in good condition. One should contract the best warehousing center that offers satisfactory operation.
Automation of Logistics
Efficiency and effective transit is further facilitated by the automation of critical logistical practices. This automation includes the computerized methods of monitoring the vehicles in transit. You can track the route, and the goods carried by those vehicles. Therefore you can quickly identify a theft case or corrupt drivers. Order processing, customization of the consumers’ needs, and storing of data are all processed by computerization technology.
Information dissemination
There is one crucial aspect in SCM that people tend to forget, which is information sharing. A useful SCM cannot operate without communicating your needs accordingly. The use of computers and communication networks are some of the crucial aspects of information sharing. When you sell an item to a customer, one thing you always expect is their feedback. Feedback is a measuring tool for whether your clients are happy with your services. You need Data processing, storage, and data mining in ensuring the customers’ needs are processed adequately.
By Wycliffe Macharia
Wycliffe Macharia is Columnist at Globe Observers. He is based in Kenya. You can catch him at wickifiesko@gmail.com