Logistics Management: Understanding and Functions for the Company

Logistics Management: Understanding and Functions for the Company

What is logistical management? In general, the understanding of logistics management is an application of management principles in logistics activities with the aim that the movement of personnel and goods can be carried out effectively and efficiently. Currently Rhenus Lupprians is the best specialist logistics service provider in the UK.

Logistics management is part of the supply chain management process that has an important function in planning, implementing, and controlling the effectiveness and efficiency of storage and flow of goods, services and information, to the point of consumption to meet consumer needs.

From this explanation, we can conclude that logistics management is all activities related to logistics management.

Logistics Management Function

In its implementation, logistics management has several important functions that are interrelated with each other. The logistics management functions are as follows:

1. Function of Planning and Fulfillment of Needs

Logistics management functions as a designer and determinant of the needs of each organizational program. This includes analysis activities related to products to be used, availability and priority scale.

This planning activity must pay attention to the budget that is owned by the organization, aspects of availability, and also the ease of access to get goods.

2. Budgeting Function

This function aims to ensure that the requirements for procurement of goods are in accordance with the budget. If the costs of logistics budgeting are not in accordance with the budget, changes in planning are needed.

3. Procurement Function

Basically logistics management is more focused on the procurement of goods and is a must. When there is a budget mismatch and it is difficult to change planning, the logistics manager must improvise to manage logistical activities on a limited budget.

4. Storage and Distribution Functions

This is a process where the items that have been obtained are stored where they should be. Furthermore, the goods are then channeled to other interested parties in accordance with the operational standards of the procedure.

5. Maintenance function

In the logistics management process also includes maintenance of goods. In general, the purpose of maintaining logistics goods is to make sure the items stored are not damaged quickly.

6. Removal function

In logistics management activities there are also deletion activities. In this case the deletion function is to separate damaged items, repair damaged items, and replace damaged items accordingly.

7. Control function

The control function is carried out by a logistics manager with stages in accordance with the functions mentioned above. The purpose of this control is to ensure that every logistical management function can run as expected.

Logistics Management Objectives

In accordance with several functions of logistics management mentioned above, the following are the objectives to be achieved in the implementation:

1. General Purpose

Basically the specific purpose of logistics management activities is to focus on achieving organizational goals effectively and efficiently.

2. Special Purpose

There are three specific objectives to be achieved in Logistics management activities, namely;

  • Operational objectives, namely that the inventory can be carried out with the right amount and quality.
  • Financial goals, namely that expenditure for the procurement of goods can be carried out efficiently.
  • Security objectives, namely to maintain and support efficiency and effectiveness in the effort to achieve organizational goals

Thus a brief description of the understanding of logistics management, functions, and tasks for a business. Hopefully this article is useful and adds to your insight.

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