The concept of business logistics has been said to have transformed since the 1960s. As the need to supply companies with materials and resources grew over the years, so did the global expansion of supply chains along with specialists who grew in their niche & skills. Moving further into the modern era as well, the complexity of logistics processes have inspired the creation of logistics management software and have launched businesses that focus solely on accelerating the movement of resource along the supply chain. Manufacturing companies have even gotten to a point where they choose to outsource the management of their logistics to specialists; a field that is dominated by Third Party Logistics (3PLs) providers.
Furthermore, being the in the thick of the digital era too, the logistics and supply chain industry has caught up and has taken strides towards digitizing internal and external processes. As mentioned in our The State Of Today’s Competitive Supply Chain: Digital, Smaller and More Resilient article, 90% of the supply chain execution expenditure will be in support of logistics digital applications and software by 2020. The IoT has already started allowing companies to digitally connect physical assets and enable flow of data across the value chain, linking every piece of the product lifestyle.
Digitized supply chains have also given customers insight and transparency into the logistics process where they have been allowed feedback into their transactions. Every user now feels like they are in control of the process, eventually leading to consumer satisfaction; a factor every business should be striving for. Technology has offered numerous benefits and opportunities when it comes to the supply chain and logistics field and these include advanced data analytics, ease of scalability, data security, cost saving, integration of multiple platforms, real-time tracking and automated procedures.
When speaking of logistics management joining forces with technology, software leads the conversation because logistics processes cannot be highly optimized without the appropriate software systems. Logistics Management Software aims to plan, implement, and control the flow and storage of goods, services, and related information. It optimizes this process, allowing for a larger bottom line through an increase in automation, visibility, communication and process efficiencies.
Different Types Of Logistics Management
Supply
Supply management deals with the planning and coordination of materials needed in a specific location at a specific time in order to provide support to production or activity. Supply logistics must have transportation of the materials and storage along with plans in place for evaluating the level of supply during different stages of the process; making sure that the flow of materials aligns with the need.
Distribution
Distribution is about managing how a supplied and stored material is then sent out to the locations where it is needed. The process includes issuing of material movement (loading, unloading and transportation), tracking of stock, and accountability of use (noting down how the supply is used and by whom).
Production
This type of logistics management oversees the stages of combining distributed supplies into a product. This can entail coordination of a manufacturing or assembling process and in the case of applications such as military production, the logistics of coordinating space and areas for production to take place. In construction, production logistics will include the staging of material to coordinate with the phase of building taking place.
Reverse
Reverse logistics management handles the recalling of material and supplies from a production of assembly process. In the logistics management of a construction project for example, reverse logistics plans for the removal of excess material and re-absorption of the material into a stock supply.