Wednesday, 23 April 2014

What is the Mission of Logistics Management?

Logistics enables the connection of the supply base and the marketplace through the coordination and management of various activities. With logistics it’s possible to meet the demands and expectations of the end customers, whether they are buying an end product or raw materials. Logistics runs through the entire organisation, from the management of raw materials to the delivery of the final product, therefore it’s essential the logistics is managed effectively.

Logistics management is when the flow of material and information fulfill the needs of the customers. In the past the areas of manufacturing and marketing were seen as separate entities within the company but today, it is impossible for these departments to act independently. Marketing focuses on the customer, working to understand who they are and in meeting their requirements while manufacturing focuses on operation efficiency, optimizing cost, minimization of setup/ change over and standardising products.  

Procurement also plays a vital role and is part of the integrated logistics process. The planning creates the framework to ensure costs are managed and the needs of the marketplace are met. This is then translated into manufacturing. Therefore the mission of logistics management is to be involved in marketing, distribution, production and procurement.

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