Importance Of Logistics Management In Today’s Business

Logistics is at the very core of modern businesses and can go a long way in achieving desired level of customer satisfaction. Competency in logistics management has gone on from being a desirable asset to an indispensable one. To put it simply, logistics is all about ensuring that the right thing arrives in the right condition, at the right time, and at the right place. However, when you get to it, you realize that this multifaceted process is anything but simple.

Logistics is an integral component of the supply chain management, which involves a series of multiple processes that run between the point of production of the goods or services, and the point of their consumption. There are several components included in the management of an effective logistics system, which include transportation, warehouse management, inventory control, packing, delivery, communication, and handling complaints.

The role of logistics management comes into play for the cost control at each stage, the adaptation of latest technological developments in logistics, and the continual devisal of new strategies to meet changing requirements. The first step in logistics management is laying down a well-defined plan, and discussing targets that are meant to be achieved through the supply chain cycle. As a logistics manager, one must be wary of “scope creep”, and remain focused on what the goals of the company are.

It is then imperative for various levels of the management to be involved in laying down a working approach to achieve these predetermined objectives. Logistics also plays a key role in globalization, by encouraging the maximum utilization of the geographical advantage of a region. Logistics has emerged as one of the most competitive strategies in the business world today, more so with the advent of online businesses.

It is no longer to merely have customer-centric goods and services on sale in your business enterprise, or even to engage in flamboyant marketing strategies. All this becomes insignificant without the backup of logistics management. Efficient logistics which delivers what it promises is the key to building customer loyalty as well as goodwill in the market. No wonder, the logistics department is being viewed as the most important department by SMEs across nations.

Newly established businesses are realizing that one of the most important steps of setting up a business is having a logistics managements system in place. Not only is this imperative to product efficiency and cost cutting, but it is also the single most powerful tools for customer gratification.

McLane Logistics Technology provides reliable and customized logistics management software to give your business a competitive edge. For more details visit them at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call at 1-800-989-7568.

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Tips To Avoid Warehousing Mistakes

The smallest mistakes in your warehouse management plan can cost you more heavily than you can imagine. If we had to point the single biggest mistake that you can make in managing the warehousing and logistics of your company, it would have to be not hiring a professional to guide you on the latest developments in logistics. Relying on guesswork or on past experiences will not suffice, especially considering the dynamic advancements being made in warehouse management technologies. 

A major faux pas committed by small businesses is overlooking the need to effectively streamline the inventory, and identify fast-moving products from slow-moving ones. If your inventory is overstuffed with products that have been lying for a long time, and are not expected to move anytime soon, you are losing on valuable space and need to take action immediately. Using upgraded technology to identify the goods that are taking up space can help you to boost the efficiency of your inventory up to 99%.

If you are still among those companies that are relying on paper records to document various stages of the warehouse management process, it’s high time you made a switch to digital data. Replacing humans with machines will not just help you to cut down on labor costs and work force management, but will also boost the efficiency of your warehouse by several notches. You can track processes as they take place in real time, and can instantly tally data to identify any loopholes in your strategy.

Considering that transport and material handling figure among the top costs of the complete warehouse management system, you need to make an effort to cut down on these costs. The easiest way to do this is to ensure that the central warehouse and distribution center is as close to your main stores as possible. For this, it is important for the warehouse distribution center to have multiple locations, which shall translate into shorter shipping distances, and hence lower transportation costs.

Finally, not having sufficient inventory space can be detrimental to the growth of your business. This can happen due to the storage space being taken up by seasonal items, or due to the need for sudden expansion. In any case, a warehouse management company that is equipped with sufficient space resources to meet your needs will be an asset to your company. Even if you do not plan to expand any time in the future, this is a factor that you should consider right from the word- go.

For more tips contact McLane Logistics Technology. It is renowned to provide customized Warehouse Management Software solutions to various large as well as medium business firms. For more details visit them at 4001 Central Pointe Parkway, Temple, TX 76504 or call at 1-800-989-7568.

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Elements Of Logistics Management

Logistics management is a key factor in the supply chain processes of any business. It is that part of the supply chain that serves as its nucleus, ensuring that all the processes, right from manufacturing to delivery, are carried out with precision and utmost efficiency.

The major aim of any logistics management endeavor is the utmost satisfaction of the final customer. For this, it is essential for a link of communication to be effectively established at each stage of the process, to ensure that the right services are delivered to the right person at the right time.

An essential element of logistics management is inbound and outbound transport management. While inbound transportation is essential to lower the prices of the final goods by reducing the costs during the various processes, outbound transport is what is actually visible to the customer.

Another important element is fleet management, which is closely related to transport management. This refers to the management of the various vehicles that are used by the company, including vans, trucks, rail cars, and cars. Everything, right from the fuel and finance management to their maintenance and management of drivers falls under logistics management.

Logistics management also includes the key elements of warehousing and inventory management, both of which are critical to the efficiency of the supply chain. While warehousing involves all the factors that go into the storage of the goods, inventory management is the central process that determines how much of each product is needed when, and where.

A logistics management company must be able to devise a working logistics network, by keeping important considerations like security, space costs, labor rates, supplier and customer locations, etc. in mind. There must be a well-devised plan in place to take care of the ultimate aim of the whole process, which is order fulfillment. This process begins when the customer places an order, and goes on until it is delivered to him, and even after that, in case of any complaints.

Most companies are now opting for logistics automation, in which advances logistics management software is employed for various stages of the process. There is separate software available for each stage, such as transport, material handling, warehousing, etc.

A modern logistics management enterprise must be well-versed with important technological aspects of the process, such as bar coding, electronic data interchange, enterprise and differential resource planning, etc., all of which are pivotal to e-commerce.

McLane Logistic Technology can empower your business with effective logistic management system, designed to take huge and complex loads and to keep your logistic management process efficient and trouble free. For more information, visit them at 4001 Central Pointe Parkway, Temple, TX 76504 or call us at 1-800-989-7568.

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Tips On Saving Costs In Supply Chain Management

Considering that the whole purpose of Supply Chain Management (SCM) is to effectively manage movement of products and to reduce the cost incurred by a company, it is logical for the SCM itself to be as cost-efficient as possible. In fact, research shows that cutting down on the costs of SCM is substantially more beneficial to the bottom line, than is a proportional increase in the sales. Saving costs at the first level of SCM is a relatively easy task, with simple strategies such as competitive bidding and strategic inventory limiting being sufficient.

However, when it comes to the second level of this process, it needs more expertise, and becomes increasingly challenging for supply managers to efficiently identify and achieve opportunities that would further lower the cost involved in the supply chain. With the margin of success at this level varying from a cost reduction of just 5% to up to 30%, it is imperative to identify the correct technique, and follow an organized approach to make these techniques work.

The following tips are effective in reducing supply chain management costs:

• Analyze the total cost components that are involved in obtaining a particular product.
• Tweak the various processes involved during the supply chain and see if any reduction in cost is possible.
• See how costs during transaction, which involves ordering, payment, requisition, etc., can be reduced.
• Replace existing materials with cost-effective ones, while still meeting quality regulations. 
• Improve the quality of materials and instruments, for greater efficiency.
• Outsource non-core activities related to purchasing and supply to contractors. 
• Effectively manage surplus material and equipment, with an effort to recover maximum possible cost.
• Standardize material variations and specifications, to cut down on inventory costs. 
• Establish a line of active communication between different teams, so as to share effective practices and coordinate programs, with an ultimate aim of reducing costs.
• Engage the fastest carrier to reduce delays in delivery, and hence expedite cash flow. 
• Identify and eliminate products that are causing monetary losses, and hence also cut down on “loser tax”.
• Engage valuable resources in the most critical areas, which include engineering, supply chain management, design and production.
• Make active efforts to increase labor productivity, and hence reducing production throughput and errors. 
• Do not engage in low bidding, and instead, use effective pre-selection techniques to find vendors who will help in design and development.

McLane Logistics Technology provides state-of-the-art supply chain management software solutions. For more details contact them at 4001 Central Pointe, Parkway, Temple, TX 76504 or call at 1-800-989-7568.

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