Operations form the base of every organization, whether in manufacturing, service or non-profit industries. Logistics and supply chain management systems are known as significant organizational management strategies to improve and enhance an organization's operational efficiency.
Logistics is defined as the planning frame work of business that manages materials, services, information systems and flow of capital resources. Logistics department processes involves all of the activities of production process that includes getting the raw material and shipping and delivering the finished manufactured goods to the distributors and customers. As logistics operations management is one of the important component for the success of the organizations, managing the operations and decisions effectively in this department is very essential. It integrates various aspects such as transportation, inventory of goods, material handling, warehousing, information, and packaging. Effective management of supply chain systems is very difficult task and as the continuous changing trend of product variety expansions, there are short product life cycles, more globalized businesses, and rapid changing and advancements in information technology (Lee, 2002, p.107).
Logistics management involves a number of strategic elements. It involves a number of strategic decisions such as selecting the vendors to get transportation services, deciding the cost efficient routes for transporting goods. The main responsibility of an efficient logistics system is to make sure the repositioning of unfinished goods geographically and it also makes sure that the finished goods of the company are reached at the required place on time with quality and at the lowest possible costs.
Key components of logistics operations
To ensure that all the customers' requirements are met efficiently on time
To coordinate with 3PLs.
To ensure timely delivery of goods.
To develop and implement plans, policies and to ensure successful implementation.
To ensure that the logistics operations managements goals are align with organizational goals.
To develop effective coordination with service providers, and transporters and vendors
To eliminate fraudulent
To ensure timely supply and payment of goods.
Discussion
In recent years, logistics management has been improved by the adoption of information and communication technology in the logistics department of the organizations. The logistics operations have become more improved and competitive challenges are now also met efficiently because of the implementation of the integrated software and Information technology resources.
It has helped a lot the managers to manage and plan the entire process in systematic manners. Organizational strategies are constructed upon particular competencies are plentiful in today's rapid changing informational and technological driven environment (Kirlidog, 1996; Raymond, 2005; Olson, 2006). This adoption has ultimately reduced the higher costs of logistics planning. There are certain gaps in most areas of distribution networks in creating a foundation for making the broad approaches for dealing with the complexity of the management in distribution network systems (W. Kersten, R. Grussenmeyer, T. Lammers, 2012).
In order to acquire technologies, organizations regularly deal with a great amount of goods and data sources. In this manner the gathering and the exchange systems of data regarding logistics information management sometimes becomes critical to manage and ...