The line between order and disorder lies and logistics This is a quote from son Sue the famous general
who wrote The Art of War a book which has become a business classic over the past few decades.
I agree one cannot overestimate the importance of logistics.
Every company large and small is deeply involved in logistics.
Whether you do it yourself or hire someone to do this for you regardless of what business you are in
every company basically does three things.
You buy some stuff and you turn it into a new and different product and you then sell that product to
In short you source make and deliver which are the basic functions of supply chain management logistics
allows you to get that stuff from the supplier to your factory to manage your inventory during transportation
and storage and to fill your customers orders but also effectively managing product returns is becoming
increasingly important today.
Logistics Management began with military operations and most people agree that the military is quite
good at managing logistics.
That is why most quotes about the importance of logistics come from military commanders from the military
applications logistics spread to the business world whether you are creating a product generating a
service or enabling an event.
Nothing outweighs the importance of gathering your resources producing your creation and meeting the
You are managing logistics logistics involves getting the right product in both quantity and quality
to the right location a distribution center or directly to a customer at the right time.
Filling that customer’s order requires four capabilities.
You must understand the demand for your product.
You must plan an effective business strategy to meet both customer demand and customer expectations.
You must manage your inventory and transportation processes and you must provide efficient support services.
Logistics is very important to efficient manufacturing operations without an effective delivery system.
There is a high risk that the factory will go dark or run out of material.
This of course can have a devastating impact on him and Tory and the ability to meet your customer demand.
When I talk of logistics I cannot help but also talk about marketing.
They are THAT closely intertwined.
When new products come to market it is important that certain attributes of the product are designed
with logistics and mine.
Size shape weight and packaging all impact the storage and transportation of the product and therefore
can seriously impact the cost of logistics and thus the final cost of the product.
I recall some years ago when Wal-Mart asked Procter and Gamble to resize the bottles for liquid laundry
detergent so that more product could be placed in the same area on the store shelves in their redesign
PMG certainly had to also consider the most efficient package for warehouse storage and truck delivery.
As marketing and sales professionals consider quantity discounts and sales promotions and achieving
aggressive customer service levels they must also consider the capabilities of the logistics system.
None of their programs can be met without an effective and efficient system for managing the customer
order a really good delivery process can create a return customer a poor delivery process can lose that
In today’s global economy with suppliers and customers all around the world the logistics function is
becoming more and more important for business success.
Whether you are working for a major multinational enterprise or running your own small business you
are trying hard to find the best suppliers and the best markets for your products.
Transportation and distribution considerations are being incorporated into the highest levels of planning
goals setting and decision making for a company supply chain operations companies who outsource some
basic logistics activities which means they hire someone else to do it for them.
They still know that these activities must be managed very carefully to prevent interruptions to smooth
material flow from one end of their supply chain to the other.
How important is logistics to your success.
Do you have specific goals for filling customer orders.
Maybe it’s a good idea to make a list of specific ways to measure your logistics performance.
Talking to someone in the marketing department might also be a good idea just to see how closely those
goals are aligned.
These are the types of actions that can spell success for your logistics operations.