Global issues & challenges in logistics management
Logistics management involves planning, executing, and controlling the flow of goods, services, and information from origin to destination. It aims to satisfy customer demands. Key benefits include delivering the right products, in the right condition, to the right places, at the right time. This improves customer satisfaction and increases profits. Major challenges include balancing value, velocity, variability, visibility, and vulnerability within supply chains. Top logistics challenges for 2012 include economic uncertainty, rising fuel and transportation costs, capacity constraints, outdated infrastructure, and security issues. To be effective, logistics managers must consider these challenges and balance competing interests of stakeholders. Globalization magnifies risks, requiring awareness of international challenges and infrastructure needs.
What is LogisticsManagement ?
Logistics Management is the process of
planning, execution, and controlling of the movement of
goods or people and related supporting activities all
within a system designed to achieve specific objective.
It is also concerned with managing and controlling the
flow or supply of goods, information, personal utilities and
other resources from one location to destination to meet
the demands of the customers or the requirement of one
department or the section of the organization.
3.
Benefits of LogisticsManagement
1. It helps in making the right quantity of right quality products at the
right place and at the right time in right condition.
2. It aims in customer satisfaction by reducing the operation cost
and passing on the benefits to the customers.
3. It helps in penetrating new market by increasing market share
and increasing profits.
4. It helps in globalization and internationalization.
4.
Challenges to theLogistics and Supply
Chain
The challenges to the Logistics and Supply Chain operations in concerned
with “THE FIVE V’s”
1)
VALUE
2)
VELOCITY
3)
VARIABILITY
4)
VISIBILITY
5)
VULNERABILITY
5.
Top 10 logisticschallenges for 2012
by Clifford F. Lynch
The economy may be on the mend, but the logistics/supply chain community will
still face challenges throughout the year. Here's what to watch for.
1)
The Economy
2)
The Price of Fuel.
3)
Rising Truck Rates
4)
Capacity
5)
Infrastructure
6)
Ocean shipping
7)
Security
8)
The green movement
9)
Increased truck weight limits
10)
The election
6.
Conclusion
In order tobe an effective and an efficient Logistics manager, he/she must
keep in mind the challenges and issues to the Logistics and Supply Chain
operations.
He/she must have the ability to balance the problem in order to have clear
perspective of consumers, firms, government and the public.
While the principles of supply chain logistics still apply in a global
environment, the challenges are significantly magnified and the risks are
increased. As many firms attempt to take advantage of global sourcing and
marketing, there is a growing need for awareness regarding the challenges
and infrastructure changes.
7.
Finally…..
While the principlesof supply chain logistics still apply in a global
environment, the challenges are significantly magnified and the risks are
increased. As many firms attempt to take advantage of global sourcing and
marketing, there is a growing need for awareness regarding the challenges
and infrastructure changes.