What is logistics management?

Any industry needs someone to carry out overall management. Only with management can order be organized, and with management, can it operate more efficiently. The same is true for logistics, which requires logistics management to organize, coordinate and supervise activities. So what is logistics management?

The meaning of logistics management

According to the academic introduction, logistics management refers to the planning, organization, command, coordination, control and supervision of logistics activities in the process of social reproduction in accordance with the laws of the physical flow of material data and the application of basic principles and scientific methods of management Realize the best coordination and coordination of logistics activities to reduce logistics costs and improve logistics efficiency and economic benefits.

Five elements of logistics: quality, quantity, time, place and price. The purpose of implementing logistics management is to achieve the established customer service level with the lowest total cost possible.

Advantages of logistics management

1. To achieve the best coordination and coordination of various logistics activities to reduce logistics costs and improve logistics efficiency and economic benefits.

2. Design, solve and manage the added value of logistics. It can provide customers with 'tailored' and personalized services, making it easier and easier to maintain and manage customer relationships.

3. In the traditional business channel, most of the enterprises are self-centered and pursue self-interest, so they often cause confrontation between enterprises. However, driven by the pursuit of greater competitiveness, many companies have begun to integrate various commercial circulation functions, and jointly plan and operate through logistics management to form a highly integrated supply chain channel relationship, which has greatly improved the overall performance and effectiveness of the channel.

4. In the traditional channels, some large enterprises have carried out vertical integration of the channels in order to have greater power to master them. Facts have proved that this has not been successful, but instead scattered the resources of the enterprises and weakened their main businesses. At present, the trend of business operation is to focus on core business, entrust non-core business to professional logistics management companies to form a virtual enterprise integration system, and provide better products and services for main enterprises.

5. Logistics management establishes an advanced information processing system, which makes the logistics information acquisition method highly efficient, thereby effectively ensuring the efficient operation of the logistics system and the high efficiency of the information flow, which enables logistics enterprises to arrange all links early, not only to achieve The best customer service can also effectively speed up the turnover of logistics and capital flow.

6. The level of logistics management is the most direct factor affecting logistics costs. Although management itself does not directly generate benefits, it can affect logistics costs through other specific logistics execution departments. Therefore, strengthening logistics management and modernizing logistics operations are the most direct and effective way to reduce logistics costs.

In summary, logistics management is a project that manages logistics activities. Logistics management is an effective way to modernize logistics to reduce logistics costs, and to achieve optimal logistics operation and best results.