Logistics management is the governance of supply chain management functions that helps organizations plan, manage, and implement processes to move and store goods. It is the process of managing the activities that are required to transport goods from their source to the final customer. Logistics management is a subset of the larger supply chain management, which plans, implements, and controls the efficient flow of storage, goods, services, and related information from the point of origin to the point of consumption.
Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory control, supply/demand planning, and management of third-party logistics services providers. To varying degrees, logistics management functions include customer service, sourcing and procurement, production planning and scheduling, packaging, and assembly. Logistics management is part of all levels of planning and execution, including strategic, operational, and tactical. It coordinates all logistics activities and integrates logistics activities with other functions, including marketing, sales, manufacturing, finance, and information.
The purpose of logistics management is to find more efficient and effective ways to move resources and products from conception to completion and, finally, to the customer. It involves the coordination, movement, and storage of goods through efficient use of resources. Logistics management includes activities such as sourcing, planning, tracking, warehousing, transportation, inventory control, and customer service. Transportation logistics management is a subset of logistics management that specifically focuses on the planning, implementation, and control of the movement of goods from one location to another.
Logistics managers oversee the departments that receive materials and supplies into a business (i.e., inbound logistics) and supervise the warehousing, stocking, and distribution of products (i.e., outbound logistics) . Advanced end-to-end logistics management solutions drive efficiency by optimizing inventory, cutting costs and overhead, and delivering improved customer service and profits.
