What are the Five Basic Elements of Logistics management? Logistics is more than just a supply branch into an organization. It is the contact medium between the two ends of business systems. Which are the internal structure and the external associates (such as companies, vendors, customers, carriers, etc) Logistics is basically an interaction between the company and its clients. It manages the flow of products from the vendors to the end-users. In the age of online marketing, the importance of logistics management has significantly increased.

What are the Effective Elements of Logistics Management? 

elements-of-logistics-for-improving-business

Logistics Management

An effective logistics includes certain specific factors. Paying a little attention to which may bring a great shift to your business growth. The key elements of logistics which have a great impact on logistics/supply chain management are –

1. Always deliver on time

“Service delayed is service denied”  is true for any business. Any delay in service may spoil the purpose or value of your service or product. This will build a negative reputation of your business in the views of clients. To avoid this unwanted situation, all the branches need to work in tandem with each other. This will allow logistic to perform.

2. Movement of the information

Movement of the product and material is not enough if you are targeting an effective logistics. You have to keep a complete account of information related to the service you are offering. The accuracy of service and time builds a positive frame for logistics. The flow of information related to the inventories is mandatory for effective logistics management.

3. Integration

logistics-integration-with-elements-of-logistics

Logistics is a process which acts as a bridge between the company and its customers. The link is established with the help of several channels present in the business system. Hence, it becomes important to develop cooperation and faith among all. Once all these channels are integrated. They can bring satisfaction to your users and growth to your business.

4. What is the cost?

reducing-your-logistics-costs

Cost is indeed an important factor in logistics management. Lowering the cost of logistic elements can increase their effectiveness and your turnover. Smart usage of supply chain management with meticulous planning will not only reduce your costs but also your storage expenses incurred.

5. Movement of the products

The supply chain is usually considered as a business process. That doesn’t bring any direct profit to your company. Shipping order is the key priority for all of them. However, there is enough space to add a little more to the movement of products. In this, the foremost thing is to deliver your products with consistency. The basic idea here is to ensure the flow of the product instead of merely moving it from one end to the other.

Logistic is a Door to Door process, which flows from the door of the manufacturer to the door of the customer. If we consider the supply chain as more than just a business process. We could achieve a lot with smart integration of purchase, inventory, and supply chain. 
 
One of the finest examples of this system is Toyota’s just in time methodology. Which is still used as a case study in many premier management institutes. Toyota managed to achieve a large output capacity with considerably low capital investment. Just in time system improves efficiency, reducing expenses and decrease wastage. They achieve this by reducing the need to store excessive levels of material in the warehouse. Smooth management of logistics is necessary for this method to work. Since only a bare minimum number of raw material is stocked. The next batch of raw material supply has to arrive at the current stock is consumed for production, hence, the name just in time. Implementing this method in their production line made them a global automotive superpower. 
 

Conclusion – Logistics  the invisible workhorse

Logistics management plays a critical role in keeping production running. Any failure in the management of the supply chain will lead to loss of valuable production time. Which makes supply chain and its functions like an invisible function that keeps your business operational. Something that we appreciate, rarely. Giving logistics the attention it requires to work correctly, will certainly change the fate of your company.

Please check out our other posts related to logistics courses