Logistics and supply chain refers to the management of interrelated networks, which are involved in provision of important goods and services to customers. The process is extensive, involving storage of raw materials and manufactured products and transportation of goods and services from the point of origin to the point of utilization.
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Logistics and supply chain is often an all-embracing process that entails drawing of policies, scheduling, implementation, controlling, and scrutinizing several activities with the major aim of establishing the net value, creating an aggressive infrastructure, leveraging an all-inclusive logistics, harmonizing supply with demand, and quantifying the performance of manufactured goods internationally.
Logistical management is closely related to other important areas of management, including operational management, procurement, and information communication. It plays a critical role in ensuring that the organization outmuscles competitors in the aggressive market. In this regard, certain information is critical in logistical and supply chain management. One of the critical information is that related to client relationship administration.
Studies show that managers are expected to change from administration of personal roles to integrating the major actions into essential supply chain procedures. For instance, the purchasing department of any organization is supposed to place an order based on importance.
The marketing department will in turn communicate with several clients in order to meet customer demands. Based on this, process integration plays a role in ensuring that customer relationship management is achieved. The use of technology is inevitable in addressing the needs of clients since it permits organization, computerization, and harmonization of sales, advertising, consumer service, and industrial support.
Information related to addressing the needs of customers is critical in increasing organizational efficiency in the sense that the company will always address customer demands in time. This leads to satisfaction among clients, as they feel that they are valued. The organization increases its sales through customer relationship management. Information related to customer satisfaction is often employed in supply chain management because it allows the study of the market.
An organization faces several challenges in trying to address the demands of customers in the globalized market. Issues related to customer service, cost control, planning, risk management, and supply/partner relationship management are all challenges that organizations face in the contemporary logistical and supply chain management. Customer service is the major challenge that any manager has to address since it might affect the performance of the organization.
This implies that the merchandise offered should be precise in terms of quantity. All the necessary documents should be availed to the customer at the right time and at the right price. Customer service challenge in logistics and supply chain management can perhaps be resolved using the supply chain operations reference model, which offers a framework and understanding as regards to the conditions of supply and performance of the product in the market.
Logistics and supply chain management can be employed successfully in ensuring that other departments, such as manufacturing and operations departments, are successful. For instance, one of the core functions of logistics and supply chain management is monitoring the flow of the manufacturing processes. The manufacturing unit depends on logistics and supply chain department in processing goods and services.
Since logistical processes are employed in manufacturing, the industrialized cycles are reduced, which enhance responsiveness and efficiency in convening the demands of customers. Several factors, such as scheduling, forecast, and sustaining manufacturing processes for instance, handling, shipping, time phasing of apparatus, and record keeping, affect the cost and importance of logistics in many organizations.