Strategic Logistics Management and Operational Functions

Functions of the Logistics Area

The logistics area focuses on training to lead others and implementing a plan organized to facilitate cooperation and effort to achieve specific objectives. The manager should be responsible for the planning and control of the department.

Description of Logistics Functions

• Traffic and Transport Management: Addresses the physical movement of materials.
• Inventory Management: Entails the responsibility for the quantity and range of materials to be available to meet production needs and customer demand.
• Plant Structure Management: Involves strategic planning regarding the number, location, type, and size of distribution facilities.
• Storage and Materials Handling: Deals with the efficient use of land and inventory destinations through manual, mechanical, or automated physical handling of materials.
• Information Management: To enhance the management of information, leading to the accumulation, analysis, storage, and dissemination of timely and accurate data relevant to efficient and effective logistics decisions.

Logistics Operational Areas

• Materials Management
• Management of Transformation
• Physical Distribution Management

Logistics Planning Steps

1. Clarify, extend, and determine organizational goals.
2. Establish conditions and assumptions.
3. Select and indicate the tasks to achieve the objectives.
4. Establish a plan of achievement.
5. Set policies.
6. Plan standards and methods to achieve them.
7. Anticipate future problems.

Basic Forms of Logistics

• Optimize the constant flow of material transfer through a transport network of links and storage facilities.
• Coordinate a sequence of resources to undertake a particular project.

Management of Returns and Performance

The company has defined a system of indicators to characterize and evaluate logistics management in general. There is a system for recording the level of service to customers, complaints, and suggestions. This record is the basis for active management to improve customer service on the basis of an appropriate differentiation of customers. The efficiency and effectiveness of the management of the logistics system ultimately aims to systematically improve the competitiveness of the company.

Phase System for Logistics Analysis

• Description of the logistics system
• Logistics costs
• Service levels
• Information systems
• System management

Key Activities of Logistics

The key activities of logistics include customer service, transport, inventory management, and order processing.

Customer Service Standards

• Degree of certainty
• Degree of reliability
• Flexibility
• Qualitative aspects
• Continuous improvement