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3 benefits of Logistics Management 

Distribution

15 May 2022

By definition, logistics is a set of methods and procedures necessary and designed to achieve the organization of a company, in order to carry out its goals or objectives. We can say that logistics management is a fundamental part to achieve efficiency in the supply of products or merchandise, from its point of origin or production, to the consumer.

Importance of Logistics Management

Logistics management allows the company to efficiently obtain the utilization, distribution, transformation, storage and guarantee the optimization of its resources. The raw material, product or goods and services handled in accordance with the design of logistics management is the most important resource of a company on the road to success.

It also allows the company to track the product in all its phases, production, transportation, storage, among others. If all the steps are carried out in an orderly manner, the company will be able to meet the demands of its customers, since the demand will be met in a timely manner, which will result in its economic benefit.

We say then that the implementation of a well-designed logistics and its optimal management in the operation and control of production processes, control, economy and profit of the company will lead us to a successful organizational strategic plan.

Mechanisms of an Appropriate Logistics Administration

We must be aware that any event that hinders or slows down the economy of our supply chain will hinder logistics management. That is why we must avoid the following aspects:

  • Flawed processes, that is, repetition of the same process.
  • Static inventories, that is, complications due to lack of rotation and/or mobility of stored goods.
  • Misuse of resources and/or poorly estimated costs of inputs or merchandise.
  • Compliance with excessive legal, fiscal or bureaucratic requirements.

Benefits of Logistics Management

  • A satisfied Customer: A good, efficient and easy-to-use Logistics Management system allows the company to make deliveries with greater speed and fewer interruptions, which will make it more reliable for its customers.
  • Control and audit: If the processes are clearly defined and carried out, the company will be able to evaluate not only the mechanisms but also what needs to be improved in them, giving the customer a guarantee of the quality of the product he receives: confidence.
  • Optimization of Economic Resources: If the company can clearly and accurately track all the processes of its operation and production of its goods or services by managing them properly. That is, from the raw material to the final product, it will avoid delays in all the steps involved. Therefore, the costs will be within the estimated without causing additional expenses, that is, if we meet the guidelines in logistics management, the company will be able to optimize its expenses and it will be possible to save.logistics management.
Logistics management- Woman and man working on configuration management systems

Configuration management

Whilst configuration management (CM) is a process used to establish and maintain the consistency of the performance of a product. This is thanks to a engineering system that also helps to establish and maintain the functional and physical attributes of a product, its design and operational information throughout its life.

This process is used with IT service management and with other kinds of domain models in the civil engineering, plus other industrial segments such as: bridges, canals, roads, and more.

CM benefits

  • Reduces confusion
  • Establishes order
  • Organizes the activities necessary to maintain the product‘s integrity
  • Ensures effective product configurations
  • Limits legal liability
  • Reduces lifecycle costs
  • Enables consistent conformance (w/requirements)
  • Enhances compliance (w/standards)

CM activities

  • Identifying configuration items
  • Defining configuration items
  • Baselining configuration items
  • Controlling modifications of configurations items
  • Releases of configuration items
  • Reporting and recording status of configuration items
  • Reporting and recording any requested modifications of configuration items
  • Ensuring completeness of configuration items
  • Consistency of configurations items
  • Correctness of configuration items
  • Controlling storage of the configuration items
  • Handling and delivery of the configuration items
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