Technology

Logistics Management – A Determining Factor for Business Agility and Sustainability    

It Isn’t Easy!

Managing supply chain and logistics is not an easy task. Your workers make mistakes, machinery breaks, shipments delay and so on. Above all, the peer pressure of reduced costs without sacrificing the quality of the products. Isn’t it like living in a pressure cooker? It is indeed, especially if you are a discrete manufacturer because you also need to focus on production management. So, all these challenges need reliable manufacturing management software solutions to overcome them. It’s the combined efforts of all teams from the point of material procurement to the point of production and logistics.  

Among all the influential factors, leaving a strong impact on your business growth, agility and sustainability, logistics management is also vital.     

Ease your business growth with logistics management software.

With thousands of commodity businesses starting up annually all over the world under multiple sectors, it’s important to gain momentum, garner competitive advantage and avoid business mortality through best practices. If you don’t want anxiety and restlessness in your business regime, you have to do everything possible that helps you keep your business running – with resilience and sustainable growth in the long run.       

If you want your business to go beyond the expectations, you need to embrace the fact that logistics management is one of the determining factors that you cannot overlook at any cost. You need simplified and streamlined supply chain and logistic processes. So, as a business owner, you have to make a well-informed decision of using best ERP software with a logistics management component. It will help you ease your business growth and ensure sustainability because the entire process will be automated and real-time data will provide you better insights into weaknesses and strengths related to your logistics department.

It is an open secret that the companies which properly manage their business operations by implementing the best suitable management practices and solutions successfully achieve their goals. It is important for your company’s profitable success to master and manage their logistic plans and processes with full efficiency and accuracy.

Logistics management plays a defining role in taking your business to the next level.      

As a major component of the supply chain process, logistics management is all about planning, implementing, and effectively controlling the goods storage and all related services and information. 

Here are the key reasons that make logistics management vital for your business growth and sustainability.

  • Increase in profit margins:

Business success is calculated through its powerful standing in the target market and return on investment. It’s your market shares that define your growth and theirs withstanding in the stock exchange even during the time of crises like economic fluctuations or downfall. It pertains to the fact that you need to keep increasing your profits and for this logistics management needs your utmost attention.

With logistics management help managers and other concerned personnel to have quick and reliable access to all business activities happening from the point of product’s origin and consumption. Logistics planning and execution make it easy for those responsible to manage the inventory and customer demand.

Considering logistics, the increase in company’s profit depends on two primary factors.

First is to forecast the future demand, all while having complete and accurate information about the products that are currently in high demand and hence have a higher inventory turnover and then those that could be the best-selling products in the next few months. Now, as you will be having enough information on producing the most needed products, you can easily manage the process of ordering and logistics. Second is to have a clear picture of products with lower market demand and hence, reduced inventory turnover. This all could be better managed and monitored with the help of a flexible ERP system.  

For increased profits you need to manage your logistics and for this, you must control the inventory more effectively – knowing what products are moving in and moving out, and in what quantity.  

  • Controlled transportation costs:  

Let’s say you are a discrete manufacturer or distributor and then you must know the importance of decreased overhead costs – be it related to procurement, production or supply chain.

Normally, companies try to cut down the transportation costs to make the most of their capital. And, for this they need to figure out the most practical ways and enact them. Here’s how you can do it.

  1. Logistics automation
  2. Consolidated shipments
  3. Different transportation modes
  4. Timely planning and scheduling
  5. Real-time visibility of supply chain   
  6. Cost-effective warehousing services

All this could be greatly done with ERP system implementation across your organization, covering all aspects of your business by connecting all departments and streamlining all of your business operations, including supply chain and logistics. Moreover, the centralized database helps you forecast the external factors such as rising fuel cost, and currency exchange rate, etc., that will eventually help you plan your logistics and transportation schedules accordingly and effectively.     

Logistics costs are usually higher if you always need to move something from one point to another and that’s usually supplying the finished goods to the customer and during material procurement if you are relying on suppliers.

With logistics management you can reduce the transportation costs on the ground of having real-time data and predictive analytics. Both are facilitated by an ERP solution’s supply chain and logistics module. It enables you to have accurate information that gives you a precise understanding of purchase and sales orders and when and in what quantity you need to supply the customer-required products. It allows you not to fall victim of unbought items. It helps you avoid the possibilities of overstocking or dead stock sitting on the shelves. You will produce and supply as per customer demand and this will, eventually, allow you to have reduced transportation costs.      

  1. Restructured operating cost:

When you become pro at logistics management, you can easily make changes to your company’s operating cost’s structure. For the reason that it makes it possible for you to have all information about the inflow and outflow of the current inventory. As the manual intervention is reduced with the ERP deployment across the organization, you can have a big picture of everything moving and everyone working. It will also help to systemize all workflows from sales order generation to shop floor, assembly line and supply chain. Moreover, you can have a more stabilized workforce with improved efficiency. With this much significance of having your business data at your fingertips, you will be in a better position to upgrade or render the initially implemented company’s operating structures that are turning useless in the present-day digital transformation.

Using logistics data as part of restructuring your business operations opens the door to more valuable and data-led discussions with concerned personnel. It will also help you focus on the issues related to your logistics department that are holding your company back from garnering the competitive advantage.

Once you reorganize and streamline your business operations, it will not only promote efficiency and effectiveness at all verticals, but also help control the operating costs. For instance, material waste is quite common while moving raw materials or finished goods from one point to another. Logistics management is essential to control this waste and thereby reduce the time and resource wastage as well since all are interlinked.    

Last but not the least is improving your customer services through well-managed logistics. It will enable you to have the right amount of stock based on customer needs and deliver them the items they need in the right quantity, at the right time.  

Bottom Line:
Logistics management is essential for manufacturers, wholesalers and distributors who desire to increase profits, reduce overheads and control the inventory capacity – mandatory for business growth, agility and sustainability. This kind of management and monitoring of your supply chain and logistics is best facilitated by the modern ERP solutions like MIE Trak Pro.     

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