Importance Of Logistics Management in Business

Everyone working in an industry is under great pressure to keep production at an ever-accelerating pace. If this is also your case, you should already be accustomed to days of work, too much billing and a frenetic pace.

You may have already noticed some people talking about logistics management for industries, but do you fully understand how it affects your routine?

It is on this subject that we are going to deal with today. So, if you want to understand a little more, pull a chair, we’re already starting! Zoe Talent Solutions explains you everything about logistics management for business.

LOGISTICS

Every business is a gigantic machine that operates with multiple gears, and all of them need to be very well aligned and regulated. In this way, sales staff can generate orders that will be produced and then delivered to the customer within the agreed timeframe.

If, by chance, someone fails to fulfill their role, the products may not arrive at their destination as they should.

Within this and all other operations involving an industry, we have the transportation, storage of various items and their transit, as well as their respective documentation. Thus, the logistics process is being built.

It is important that you also remember that there are suppliers and other partners who are outside the company, but they also need to be well adjusted to the production gears, after all, they depend on delivering and receiving products and services through proper and proper documentation .

All this bureaucratic flow of materials makes up the logistics of a company, and that is why its proper functioning is so important.

LOGISTICS MANAGEMENT FOR BUSINESS

Regardless of what your business is, logistic management for industries, or the lack of it, certainly affects your production .

If you think that the whole production process is a routine that has many variables and that is repeated again and again, you will realize how each detail makes a difference.

It is very common, on this subject, to hear of terms such as supply chain, flow of operations, channels of outlets, and the like. The fact is that logistics affects all departments and is also affected by each one of them. There is no way to separate it: in one way or another, everyone is mixed together.

That is why many managers end up being so strict and methodical. They understand that if something goes wrong at one point, the whole process can be compromised.

Imagine that an employee in the materials shipment makes a mistake and dispatches the wrong item still early in the manufacturing process and this error ends up making a whole batch that was already programmed for a customer unfeasible. The damage can be very large. So you can not be negligent about anything.

BENEFITS OF GOOD LOGISTICS

But take it easy, because everything is not a problem. There is also the good side of it.

With well-adjusted logistics, it is possible to achieve good results. If the orders are arriving quickly and well detailed, you can put everything right on the production schedule, which avoids delays there at the time of delivery.

Having properly completed materials purchasing documents and a good tool for sending information to your supplier, your inputs are more likely to go into production without delays – and if you can make a good receipt schedule, you will need a stock for storage .

That means savings, because a reduced area of ​​material storage demands less maintenance, in addition to the space being freed up for other activities.

A well-oiled logistics system will also be able to avoid waste. Imagine, for example, a food industry that works with milk and other derivatives. Any mistake or delay in the production process may be responsible for causing the loss of tons in dairy products.

All economy and productivity gains achieved through responsible and more professional logistics lead the company to become more profitable, increasing revenues and reducing expenses.

THE IMPORTANCE OF LOGISTICS MANAGEMENT

When we talk about importance of logistics management, Both the advantages and disadvantages of logistical management in your industry are a result of the way you manage.

A more relaxed management will produce effects along the production chain, and there we will have all those losses, delays, waste, misunderstandings, nervous people and so on.

On the other hand, controlled processes and systems that work well ensure that the gears continue to spin in the right way. These are the care that can offer better negotiation margins, tighter deadlines, comfortable cash flow, less indebtedness and unforeseen, and more satisfied customers. Even the coffee seems to taste better.

It is to ensure that the environment is always good that an attentive and professional management should be sought. Do not use to make a soft body.

Everything needs to be in place, people being able to perform their duties with a good level of commitment and responsibility and the workflows designed in the right way.

A good way to improve your logistics is to identify who your bots are and where they are. At what point do things get stuck in your area? What should be changed so that production would be at a better pace and safer?

It may be that a more automated system makes a difference. You may need to change someone’s role, a different way of transporting materials or even reviewing the order of the production sequence. The fact is that it is almost always possible to adjust something, and anything that is improved helps in the final result.

Keep a close eye on the results that are your responsibility and ensure that the sequence of activities remains stable and with the least possible error rate.

Achieving good levels of production is an arduous task, but it guarantees the survival of everyone in the market.

BENEFITS OF LOGISTICS MANAGEMENT

Custom Projects

Intelligent logistical management enables the manager to institute customized projects, well targeted to the client, considering his / her consumer profile, the needs and preferences it reveals.

These projects may include methods of storage and distribution of products, which can be done immediately without the need for  storage  (cross-docking).

Larger view of the entire chain

This is the “360º Vision”, which allows to consider and monitor all phases of the supply chain, taking into account from the storage process to delivery to the customer.

Only with a broad outlook can the manager develop more effective control strategies and well-targeted planning. This will prevent unnecessary spending, without compromising productivity and the final quality of services and products.

It is worth mentioning that, in order to take advantage of this more open vision, the manager needs good management software – that integrates all the sectors among them.

More agility and efficiency

When things are kept under constant monitoring, it is possible to develop faster and, at the same time, more efficient processes. It is earned in quality, in addition to time and productivity.

Well-managed logistical management helps to identify failures, which will be corrected immediately, and risks that can be avoided or minimized.

Once again, it is worth emphasizing the importance of  technology  to certify the speed in the execution of operations and more efficiency in the work.

Real-time monitoring

Armed with the appropriate technological tools, the manager can perform real-time monitoring of all phases and operations of its logistics chain. You can then intervene at the right time to solve some difficulty, optimize the work, suggest an effective strategy, replace a plan already outlined.

Real-time monitoring is extremely advantageous for both the manager and the employees involved in the logistics processes, as they will have full-time support.

Improvement in results

Of course, the results will be incredible for the organization. It is worth considering that the manager:

  • Reduce expenses and waste;
  • Will have more integration with the team;
  • Coordinate the work based on concrete and accurate information;
  • Improve the quality of the service level;
  • It will have better control over the storage and distribution of products;
  • Will have the resources to develop a more efficient and realistic planning;

You will be able to  improve your communication  and your relationship with suppliers, employees and, above all, customers who will be even more satisfied with the services offered (thus, logistics management contributes greatly to customer loyalty).

7 REASONS FOR YOUR COMPANY TO ADOPT REVERSE LOGISTICS

1. Competitive differential with reverse logistics

Creating a competitive differential is important for companies and, according to ABEPRO (Brazilian Association of Production Engineering) surveys, 19.12% of respondents see reverse logistics as a competitive differential. And thus, when developing a competitive differential, it is common that there is an increase in sales and searches by the company.

2. Socially acceptable company

More and more people are looking for socially acceptable companies, especially because of the desire to do something for society when acquiring products or services. Therefore, the social factor and adequacy to public policies tend to be well-regarded by consumers, shaping the company as socially acceptable.

3. Sustainability

It is common that sustainability is currently among the goals of large companies. Sustainable management is nothing more than meeting economic and human needs without compromising the future.

So, as the practice of reverse logistics is sustainable – by reusing discarded products, reducing environmental impacts, and reducing economic costs through the reuse and proper disposal of solid waste – its adoption has become ever greater.

4. Profits from the reuse of used products

Products that can be recycled and reused represent good profits for the company as long as they go through the correct process. Anyway, this happens because the labor and the expense with raw material to recycle an item usually is smaller.

5. Reduce product costs through reverse logistics

Reverse logistics allows to reduce costs with the reuse of solid waste, impacting directly on the company’s cash. In addition, this cost reduction can become a differential, making the sale of products at more affordable prices and driving sales.

6. Improve brand image

Have you ever wondered why large companies care so much about practices like reverse logistics? For through sustainable and social attitudes it is possible to achieve a significant improvement in the brand image, which impacts quickly and directly on searches and conversions.

7 TIPS TO IMPROVE YOUR LOGISTICS MANAGEMENT

#1. AGILITY AND CONTROL IN THE PRODUCTION LINE

To have total control of production, it is necessary that the organization has all processes mapped. The more numbers and information, the easier it is to identify the weaknesses of the Supply Chain . Therefore, it is necessary to monitor from the beginning to the end, to speed up and even predict the resolution of possible problems.

#2. SHARE THE LOGISTICS MANAGEMENT SYSTEM WITH SUPPLIERS

Lack of inventory is detrimental to logistics performance, as is excess, which implies higher costs and losses. In this way, sharing supply chain systems with suppliers helps with this problem as they produce and deliver as their stock level is low.

# 3. FORECASTS OF DEMAND TO PREVENT WASTE

One of the most important points to ensure the success of a company is to be able to measure the sales that it will make in the future, through quantitative and qualitative analyzes.

Demand forecasting methods are designed to set billing targets and more accurately determine the quantity of products that must be developed or purchased from suppliers . It can be a rather complicated task. For this, having the support of logistics management is essential.

Looking at the past history is one of the best methods to predict demand by attributing growth comparisons. Other factors are added to the projection and thus gain a shape according to the drafts that are being drawn up.

It is important to remember that whenever you work with any method of forecasting demand, it is prudent to establish a margin of error, since it is exactly a forecast, not an exact number.

# 4. ACQUIRE NEW PARTNERS

Understanding that no one is successful alone is a big step to the success of any company. To help you develop new processes and even improve the efficiency of your business, look for business partners.

An important detail is that size or fame are not essential. Betting on small suppliers that are promises of the industry, can offer great benefits when it comes to innovation and delivery. A good partnership is a sign of innovative ideas and credibility.

# 5. INTEGRATION OF TEAMS

It is important that sales projections made in strategic planning are integrated with other steps, such as operations planning, production and finance. So you have a single, complete and precise plan of action. Marketing can also be part of this integration, to monitor campaigns, market conditions, and other aspects.

# 6. USE FEW SUPPLY CHAIN ​​MANAGEMENT SOFTWARE

To ensure efficiency and agility in the processes use few software, if possible only one. Choose software that meets all the needs of your organization. Research first and foremost, and check what are the most important points in management.

# 7. MONITORING THE PERFORMANCE OF SUPPLIERS

The failure of a single supplier can lead to problems in the supply chain flow, which consequently damages budget and customer satisfaction. It is important to monitor the activities of your suppliers to ensure efficiency and good results.

Matt Williams is the founder and CEO of Add USA Story - A platform for global startup, looking to find happiness in the world of startups, investments, health, technology, business and more.

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