What is Role of Logistics in Supply Chain Management?

1. what is role of logistics in supply chain management? https://zenxl.in/services/supply-chain-management/

2. What is Supply chain Management? Supply Chain Management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantages. A supply chain transforms raw materials and components into a finished product that’s delivered to a customer. It is made up of a complex network of organizations and activities, such as raw materials suppliers, manufacturers, distributors, retailers and the customer. The concept of Supply Chain Management (SCM) is based on two core ideas: • The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. • The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains. https://zenxl.in/services/supply-chain-management/

3. What is Logistics? Logistics is most important to all the industries who deal in products. It is specially relevant in the world of supply chain management. Logistics refers to the process and coordination of products, raw materials and services across the supply chain. From manufacturing and production to distribution, fulfillment, and final delivery to customers and end users, logistics is a critical and essential component of a successful supply chain. Below are the logistics components: • Inbound transportation • Outbound transportation • Fleet management • Warehousing • Materials handling • Order fulfillment • Inventory management • Demand planning https://zenxl.in/services/supply-chain-management/

4. Functions of Logistics within Supply Chain Management • Warehouse design and management -This role of logistics in supply chain management covers several tasks at once: from the design of storage facilities to the requirements for storage of products and ending with the introduction of various automation solutions. • The formation of packages -Packaging, tracking and accounting – all of these tasks allow for end-to-end control of goods on the way to the customer/distributor. • Transportation of products -This includes work with cargo carriers and vehicles listed in the company’s fleet: planning their routes, calculating fuel costs, etc. • Working with customs -When an enterprise plans international delivery of goods, it is very important that during their transportation the goods fully comply with customs requirements and contain all the necessary documentation. https://zenxl.in/services/supply-chain-management/

5. Continue…………….. • Working with intermediaries -Intermediaries in logistics are all third-party, non-company resources that are directly involved in the implementation of supply chains. In turn, finding intermediaries with the most acceptable ratio of quality to cost of services, as well as establishing long-term, reliable relations with them are also included in the list of tasks for efficient logistics management. • Working with written off and returned goods -There is also such a thing as “reverse logistics”, which establishes the rules and routes for transporting the returned/discarded goods, as well as ways to dispose of them. https://zenxl.in/services/supply-chain-management/

6. Challenges Logistics in Supply Chain • Minimization of enterprise expenses • Consolidation of traffic volumes • Improving the quality of service • Reduction of actual losses and reduction of possible risks • Minimization of the need for intermediary services • Supporting goods with the necessary documentation • Timely response to changing market demands https://zenxl.in/services/supply-chain-management/

7. Values Logistics in Supply Chain • ensuring the smooth operation of all parts of the supply chain • release of labor resources • coverage of a new target audience • net cost reduction https://zenxl.in/services/supply-chain-management/

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