It is one of the components of the supply chain used to meet the needs of customers, starting from the assembly of raw materials to the delivery of goods to the desired destination through planning, control and implementation of effective movement and storage of information, goods and services and their delivery to their places.
It includes order receipt and processing, stock verification, packaging, dispatch of items and choice of transportation methods. As well as operations related to incorrect or damaged shipments management, component repair, reuse and recycling.
It can be described in a simple way, as quoted from the technology management handbook, which is "Obtaining the right item in the right quantity at the right time in the right place for the right price in the right condition for the right customer."
Logistics management systems:
It is a set of programmed tools that improve all processes from order submission to delivery to the customer. By checking to obtain the corresponding product information. And issuing notes and information. And when the management personnel are not in the warehouse, they can connect remotely to the logistic management system through the RFID or use the computer directly to understand the information of distribution and storage of goods in the warehouse.
Logistics management facilitates work by reducing costs, enhancing customer service and adhering to their needs according to industrial standards by selecting the right vendors, providing transportation facilities, choosing the most efficient delivery methods, and using information technology to efficiently handle related operations.
The functions of logistics management can be divided into units such as inventory management, commodity management and external management.
Typically, the order is received and processed online, creating inventory, managing customer service, accepting payments, checking for spam, and handling documents between manufacturers, suppliers, and carriers. To manage orders effectively and avoid processing errors.
The order management software receives from all sales channels and monitors them from the moment of submission to the moment of delivery to the customer where all the information related to the order is displayed which includes routes, location, inventory, warehouses, accounting for creating invoices and accepting payments.
Logistics Management Styles:
1 - Supply Chain Management Logistics: It includes planning, purchasing and coordinating materials needed at a specific time and place. It includes transporting and storing materials and assessing the level of supply in its various stages to ensure that customers' needs are met.
2 - Distribution and movement of materials: They are the various stages in the transfer of stock and include loading and unloading, transportation and inventory tracking. And manage the supply movement from central warehouse to retail centers.
3 - Production logistics: They are the stages of integrating supplies into a product. That is, the coordination of materials needed to assemble and manufacture a specific product. This type of logistics management is applied in product management.
4 - Logistics reversal: It is based on removing the excess materials and returning them to the warehouse. And return unwanted or unused products for a refund.
The logistics management network includes:
• Factories making products
• Product storage warehouses
• Distribution centers for receiving, returning, transporting and delivering the product
• Retail stores
So the main goal of logistics management is to find the most efficient and effective ways to transfer materials and products from the idea to the completion of the product all the way to the target customer. And meet the needs of customers and provide the best possible service to retain them and achieve their satisfaction. By using the fastest, most accurate shipping methods and maintaining a high level of quality. And improve the flow of materials and avoid potential problems.
All of this increases revenue. And get a good corporate reputation and a distinctive brand. Thus, attracting new customers. Certainly, cost savings by controlling incoming money, keeping inventory at the correct level, and regulating the reverse flow of goods.