Logistics Management Systems: Main Modules and Integration

In business, logistics may have either an internal focus or an external focus , covering the flow and storage of materials from point of origin to point of consumption (see supply-chain management). The main functions of a qualified logistician include inventory management, purchasing, transportation, warehousing, consultation, and the organizing and planning of these activities. Logisticians combine professional knowledge of each of these functions to coordinate resources in an organization.

As environmental constraints close in on us, larger shares of effort will be redirected in this manner. To the extent that they favor one method of transportation over another, technological developments may raise logical questions about the proper orientation of a company’s facilities in relation to those of its competitors. All involve actions that are big-dollar in relation to the overall size of the companies in which they are implemented.

Logistics versus reverse logistics

Second, entrepreneurs have formulated some of the most remarkable logistics-oriented business strategies. The entrepreneur wears so many hats that he or she embodies the wedding between top management and logistical considerations in the strategy formulation process. But what of the large corporation in which organizational differentiation necessarily has created both specialized responsibility and a widening gulf between top functional logistics management? Here the experience of the large chemical manufacturer may be enlightening. This producer carefully maintains a liaison between functional and long-range planning personnel. Members of logistics groups in operating divisions that are responsible for shorter-range planning and for maintaining an awareness of current problems are kept informed of those elements of corporate strategy that might influence their thinking.

The weekly update of regional depot inventories often produced inaccurate knowledge of inventory availability on the part of order takers. Dealers could designate emergency orders, which were then shipped by the fastest method with transportation costs billed to the dealer. One indicator of the ineffectiveness of the system was that a growing proportion of orders were emergencies.

The World Bank Group has been an active supporter of customs reform and border management modernization for many years. The Bank Group has invested in more than 120 projects to improve border agency challenges over the past 20 years. The current trade portfolio includes approximately $300 million in border-related operations and technical assistance programs. The World Bank Group is a leader in connectivity and logistics performance evaluation, and in customs and border control, a key piece of trade facilitation.

Facilitating Trade Across Borders

For example, logistical costs of organizations in the United States incurred about 11%of United States national gross domestic product in 1997. Such a situation is also similar for the countries in the European Union where logistics incurred 8.8 to 11.4% of the national GDP in 1993. For the interlibrary loan units this is likely the lending and returns aspect of the process. All of these are logistical problems that each interlibrary loan unit must address.

We have talented workforce and seasoned operators who know how to improve productivity and reduce supply chain costs. Of course, the work of a logistician is only part of the overall supply chain management field. If you’re strongly considering a degree in this field, you’ll want to check out our article, “What Can You Do With a Supply Chain Management Degree? 9 Careers to Consider” to learn more about how else you could apply this degree.

He drives the entire supply chain including manufacturing, marketing and logistics. Hence 集運 is important for a firm to have a clear understanding of what the customer demands and to keep up to the customers expectations. Once a company has a clear understanding of its customer’s requirements it must device a strategy on how to use logistics to achieve it.

This, of course, greatly reduces the availability of each item and the overall service level. It stands to reason that standardization within product lines can reduce production costs, cut inventories, and increase field stock coverage while nevertheless providing the basis for differentiating end products. For example, General Motors is able to produce an endless number of lines, brands, and models of automobiles from its standard A, B, and C auto bodies. These are but three of a growing number of companies that place major reliance on logistics in their business strategies. Typically, large retailers or manufacturers own major parts of their logistics network.