LOGISTICS MANAGEMENT

ASSIGNMENT # 1

KARACHI UNIVERSITY BUSINESS SCHOOL

GROUP MEMBERS

MUHAMMAD AYUB
S.M. DILAWER ABBAS
MUHAMMAD ALI SHAHID
FARIZ UL HASSAN
USAMA ALI KHAN
Importance of Logistics

Efficient management is the key to success, especially in supply chain management. There are various
factors involved in effective logistics management, for example, automation and perfect coordination.
But, there is always a scope for improvising the process.
Proper Planning
The first step to accomplishing a task is planning. Now, planning encapsulates various factors. It involves
procuring the goods, storage facilities, and delivery of products to the exact location.
Apart from these, the other parameters are – time, transportation, and the costs. A supply chain operative
should be able to devise the flow chart for the whole operation. The purpose of planning is to attain
maximum work in the least possible time. At the same time, the planning should aim at maximizing the
profits.
Proper planning is a wise plan, but an experienced manager will be able to prepare for the unforeseen
circumstances as well. These situations can be related to:

 The products
 Unavailability of the transportation
 Any internal issue in the organization
 Research and pick the correct Freight class.
Efficient Transportation
Transportation department can be analyzed to decrease the expenses of the logistics firm and at the same
time, it can be revamped for faster delivery of the products. Following factors should be considered for
efficient transportation:
  Determining the best delivery route. A logistics firm should opt for the shortest yet safest route.
This is beneficial for saving money as well as time.
 Cost-effective packaging that ensures low investment and safety of goods as well. Optimize the
packaging so that it occupies less volume and it does not increase the weight of the package.
Measure and Improvise
Logistics network optimization is incomplete without integrating measurement, analysis, and feedbacks.
When you deploy new strategies in the system, you need to measure the output. This is important as it
intimates the success or failure of the strategy.
Measurement tools and software should be integrated that easily determines and classifies the information
as per the requirement. Your future planning is heavily dependent on the measured information. Analyze
the metrics related to different operations. This includes:

 Cycle time metrics

Classification of Logistical Activities

1. Inbound logistics: which is concerned with the smooth and cost effective inflow of materials and
other inputs (that are needed in the manufacturing process) from suppliers to the plant. For proper
management of inbound logistics, the management has to maintain a continuous interface with
suppliers (vendors).
2. Outbound logistics: (also called physical distribution management or supply chain
management); is concerned with the flow of finished goods and other related information from
the firm to the customer. For proper management of outbound logistics, the management has to
maintain a continuous interface with transport operators and channels of distribution.
Logistics helps businesses create value
Providing value to customers does not only refer to quality or quantity. It also refers to availability.
As better logistics makes your products more available to an increasing group of people, wise
business leaders consider it a very important tool in creating value for customers.
Logistics creates and increases the value businesses offer by improving merchandise, and ensuring
the availability of products. In order to provide more value, businesses either work on improving their
own logistic activities or rely on professionals.
Keep your customers satisfied, rely on experienced logistic professionals
Satisfied customers are the most precious asset for any business. They are the main drive for the
supply chains in each of the three phases: manufacturing, marketing and logistics. For this reason, it is
a priority for each business owner to clearly understand customer needs, preferences and demands,
and then work relentlessly to meet them.
When successful business leaders acknowledge the needs and requirements of their existing and
potential customers, they develop a strategy. Whether the business is small, middle-sized or large,
strategies rely on effective logistics.
Logistics is the key to success with supply chains
Supply chains are unique networks between businesses that deal with the production, shipment,
warehousing and delivery of products. These networks are very important to businesses as they
largely affect sales and profits. However, without effective and well-organized logistics, supply
chains can’t help your business gain a clear advantage over the competition.
While a good marketing strategy can “open many doors” and attract customers, a reliable logistics
service can help your business build and maintain a positive public image. Meanwhile, poorly
organized logistics can lead to losing customers and decreased sales.