Logistics service stands out as one of the most common business processes in the safe transportation of goods. However, logistics; It includes more than one process. Regardless of the size and business volume of the companies, process management should be done by professional teams. Procurement, storage, distribution and customer feedback are parts of the process. Increasing the quality of the service to be provided is possible with professional transportation management. Therefore, it is useful to touch upon important points regarding logistics management activities.

 

LOGISTICS MANAGEMENT

 

Logistics management; It refers to the procurement, storage and shipment of inventory from the source point to the destination point. In addition, it also includes securing the inventory and related information and delivering it to the counterparty at the desired time. In addition, customer needs are taken into account in this process and it is a process that includes planning and efficiency control in the transportation of goods and services.

 

Transportation management; It forms an important part of the planning and execution levels. In addition to organizing international logistics management activities, it is also intertwined with the company's sales and marketing, finance and technology areas. Sometimes the concepts of logistics and supply chain can be confused. Logistics is part of the supply chain. Transportation management aims at customer satisfaction. Therefore, it aims to manage transportation to ensure maximum effectiveness and efficiency. On the other hand, supply chain management targets a broader management scale. This scale extends from purchasing raw materials from suppliers to delivering the final product to the consumer.

 

TYPES OF LOGISTICS MANAGEMENT

 

There are four main types of logistics management activities. These:

 

Supply Management and Logistics: Involves planning and sourcing of products required at a particular location for the production of any task. It also includes organizing a place to store your products in addition to shipping them. For example, the delivery of materials or parts to any construction site must be evaluated separately at the supply level at each stage of the process to ensure that the customer's needs are met.

 

Distribution and Material Movement: This movement; It refers to taking previously stocked materials and transporting them to the place they need to reach. It is of great importance to follow the loading, unloading, transportation and stock movements of materials. Such a type of management also controls the movement of products from a central warehouse to stores that will sell them to the final consumer.

 

Production Logistics and Management: This phase manages the steps of coordinating what is needed to make or assemble a service and combining distributed materials into a single product. This type of management falls within the field of product management as it involves preparing products at the most appropriate time to work with the construction of a product.

 

Reverse Logistics and Product Return: Deals with the management process of materials recovered from production. For example, it involves the process of removing excess materials that are not used on a construction site and returning them to the company's stocks. In addition, it manages the return process of unused products from the end customer who requests a refund. What is Reverse Logistics? What does it mean? You can learn more with our blog content.

 

FUNCTIONS AND ADVANTAGES OF LOGISTICS MANAGEMENT

 

 

There are functions and advantages that an effective domestic and international logistics management provides to companies. Some of these are as follows:

 

Functions such as customer service, sourcing, production planning, packaging and assembly are among the functions of logistics management.

 

Advanced transportation management solutions; By optimizing inventory, costs are reduced and productivity increases accordingly.

 

Good international logistics management increases the effectiveness of companies both in this process and in supply chain management.

 

Good transportation management contributes to saving the time required to complete all stages of the production process, thanks to information and communication technology.

 

Good transportation management helps companies develop competitiveness with other companies.

 

For companies looking to move their business forward or solve existing problems, it is crucial to understand the differences between logistics management activities and supply chain management. This understanding helps in finding a suitable solution or strategy to the problems that arise.

 

It ensures increased traceability of products for all stakeholders through streamlined processes and advanced technology-supported operations. For example, businesses can allow their customers to view the order's shipping status in real time. At the same time, if the customer wishes to update the delivery address, these updates must be sent immediately to the logistics partner.

 

Another advantage is increased workforce management efficiency. The workforce required in all processes, from unloading the received inventory to packaging it for shipment, must be well planned. In this way, efficiency in workforce management is achieved.

 

Customer satisfaction is maximized thanks to a strong order-taking and response infrastructure. Additionally, transportation management plays a very important role in planning production and inventory management, which affects time to market.

 

Domestic and international logistics management; It helps maximize profitability without compromising customer satisfaction as it provides systematic risk reduction and well-planned operations.

 

THE IMPORTANCE OF LOGISTICS MANAGEMENT

 

One of the main goals of logistics management is about finding more effective and efficient solutions to transport resources and products from design to completion and finally to the customer. However, one of the points that must be taken into consideration while achieving this goal is to respond to customers' requests and maintain customer satisfaction by providing the best possible service.
 

 

As customers expect better service from companies in the sector, the need for companies that provide faster, more accurate and higher quality shipments in the market also increases. Customer satisfaction in the sector can be achieved at the highest level thanks to logistics management activities. There are other reasons why process management is important. As an example; Transportation management is very important as it provides visibility and transparency in the company's supply chain. Professionals in the field can improve future material flow by analyzing historical data. Therefore, transportation management also helps increase revenues and reduce expense items. Apart from this, it creates more job opportunities by making a positive contribution to the company's brand as it improves customer services.
 

 

Since international logistics management provides control of the supply chain, it also organizes the maintenance of inventory at the correct level and the reverse flow of goods. In this way, companies achieve cost savings in their operations. Transportation management is important due to a variety of factors, both positive and negative. Good transportation management; It allows reliable delivery of manufactured goods at the lowest cost. This results in both cost savings and customer satisfaction for the company. However, non-systematic and orderly transportation management may result in shipments that are damaged or not delivered on time. This leads to customer dissatisfaction, returns and higher costs. Effective logistics management is very important to avoid these negative consequences. And this; It includes proper planning, choosing the most appropriate software system, appropriate review, managing the process correctly and finding the right resources.

 

Depar Trade Logistics ensures that all your transportation transactions are carried out smoothly, safely and quickly, thanks to its experienced, knowledgeable and expert staff. With its logistics management service, it allows both your national and international transportation operations to proceed as planned. You can take your company to higher levels globally by collaborating with Depar Trade Logistics.