Logistics Management

Logistics Management

Logistics Management

Introduction

Logistics operations management has evolved, over the years, from an initial focus on enhancing labour-intensive processes to the modern day management of complex global networks. The supply chain management function of the companies has dramatically changed with the growth and adoption in the use of modern Information and Communications Technology (ICT) systems. The purpose of the paper is to evaluate the key components of Logistics management and research the major ICT systems involved in each component of logistics. Further, the paper strives to provide a critical analysis of the benefits and challenges associated with adoption and application of modern technology.

Logistics Management

Logistics management is a part of supply chain management, which helps in planning, implementing and controlling the effective and efficient forward and reverse flow of goods and services, including the storage of goods and services and any other relative information, from the point of origin to the consumption point, in order to meet the customer's requirement effectively. It involves the integration of information, transportation or location analysis, inventory management, material handling, packaging, warehousing and often security.

Effective and efficient logistics management is significant to achieving the performance and cost related objectives of the company. Therefore, modern and up-to-date technology in managing the flow of operations, in logistics management, is vital to achieving the targets of the company. Modern software is being used for the automation of logistics management in order to ensure the workflow and management system's automation. Despite of the wide range of software solutions for the management of logistics, many of the commercial companies uses one or other of the customized software solutions. Logistics management is one of the important functions of an organization. The success of logistics management depends upon the working of its key components. Following are the key components of logistics management:

Information Management

Information management involves information logistics, which deals with the flow of information in a company or between separate units of the company. This component is responsible for optimizing the management and control of the information with respect to capacity, distribution, storage, time and presentation in a way, which contributes positively towards the company results in accordance with the capturing costs. Customer information management is also a critical part of the information logistics, which include information regarding the specifications, quality checklist, and delivery schedule and delivery location of the product. The critical factors involved are associated with the order processing cost, company's capability of producing the component and the specifications of the product. These factors demand for the utilization of modern ICT systems. A recent research has revealed that an open and fluent communication facilitates the relationship between customer satisfaction and knowledge sharing with a logistics service provider (Rollins, et. al. 2011, pp.956 - 971).

Major ICT Systems

The major ICT systems and techniques being used in the information management are as follows:

Electronic data Interchange (EDI)

E-ERP or CPFR

Web portal

Inventory Management

It has been argued that the focal point and cornerstone of effective logistics or supply chain management is the control of inventory (Dooley, ...