Types Of Logistics Management

Logistics management is a part of supply chain management that plays an instrumental role in satisfying customer expectations by effectively moving goods from the supplier to the customer. Logistics management aids businesses in improving customer service and lowing costs. The process starts with gathering raw materials and ends with delivering finished items to the customer’s doorstep. Moreover, logistics management makes planning, process strategy, and execution easier by conforming to industry standards and customer demand.

By leveraging digital solutions alongside traditional logistics management practices, businesses can stay ahead of the competition and meet evolving customer demands. Whether it's optimizing warehouse operations, improving transportation logistics, or enhancing order fulfillment processes, integrating digital solutions into logistics management can drive growth and success in today's competitive market.

Organizations should implement good logistic management practices to ensure that the logistics department works smoothly within the supply chain. Businesses should focus on collaborating rather than competing. Collaboration between 3PL service providers, vendors, and buyers can help cut down costs all along the network. In this article, we will discover the different types of logistics management and understand how they operate within the larger supply chain management.

Supply Logistics Management

Supply logistics management refers to the process of acquiring resources needed to make a specific product. In other words, this element of the supply chain is responsible for obtaining raw materials, auxiliary supplies, replacement components, operational supplies, and other items required for the production process to continue to run smoothly without delays and interruptions. 

Nevertheless, supply logistics management isn't only about procuring supplies. It also manages the materials' storage, organization, and movement of goods in and out of the warehouse. The supply logistics team is in charge of product sourcing, communication, and obtaining resources to keep acquisition costs as low as possible.

Production Logistics Management

Production logistics is the movement of procured goods from one department to another for the purpose of producing a product. It involves the management of the acquired raw materials, distributing those materials according to the department's needs,  product management, packaging, and transporting the goods to the warehouses for distribution. 

Moreover, production logistics management plays a crucial role in the overall production efficiency. A slight delay in the production logistics can cause your company to lose money as well as clients. As a result, production logistics management is handled carefully to ensure the business' productivity and efficiency are not hampered.

Sales Logistics Management

Sales logistics management is all about delivering items from storage to their final destination. It involves transporting goods and keeping track of the inventory. This process can become very complex in this era of online selling, and the use of ecommerce inventory tracking software to automate the process is essential in order to stay ahead of your competition. This sort of logistics management oversees the distribution of goods from the warehouse to different retail locations. 

Whether these items are delivered via warehouses or directly from manufacturing sites, efficient and fast transportation methods are essential for delivering goods on time. Understanding these logistics management types is crucial for smooth operations. For e-commerce businesses seeking fast and cost-effective logistics solutions, it's advisable to explore shipping with Acumatica software, and, if needed, consider partnering with a reliable 3PL service provider for expert assistance. Timely deliveries are important components of sales logistics management and add to consumer satisfaction positively.

Reverse Logistics Management

Forward logistics is the movement of products from producer to consumer as represented by the processes of supply, production, and sales logistics.

In contrast, reverse logistics, often known as recovering logistics, is the process of retrieving the item from the customer and taking it back to the warehouse. Monitoring the reverse logistics process is key to achieving sustainability goals and maintaining an efficient recycling program. One method for measuring performance in this aspect is through DIFOT ( Delivered In Full On Time) reporting, which serves as a metric for both forward and reverse logistics. In reverse logistics, evaluating items identified for potential reuse allows logistics managers to track the percentage returned, repaired if needed, and successfully redistributed.  

Most of these items are returned by the customers because they are defective or damaged. As a result, recovery logistics management will also involve dumping or discarding the product. However, if the item is in a condition that it can be reused, it is sent for recycling.

Recycling Logistics Management

Recycling logistics management comes under reverse logistics. In recent years, it has become more critical to protect the environment and efficiently use commodities such as metals, paper, and plastic. Through recycling logistics management, you can recycle the returned products so you can reuse them, resulting in fewer materials being wasted. To comply with local laws, you may also need to employ a digital product passport solution to record information on the carbon footprint of each product. This is vital if the market you're selling to, like the UK/EU, has strict environmental regulations.

The Bottom Line

At this point, you are aware of the different types of logistics management and the importance each holds to ensure the logistics operations run smoothly. Moreover, you can now accurately identify the issues and look for appropriate solutions regarding logistics management. 

Today’s e-commerce businesses require fast-paced and cost-effective logistics solutions to plan, manage, and monitor their warehousing operations, transportation, pick-pack-dispatch activities, as well as order fulfillment campaigns. If you feel your company does not have the necessary expertise or resources needed to manage everything on your own, you can always contact a dependable 3PL service provider to get the required help.