The Importance of Logistics Management in Transportation Operations
A growing body of scholarship confirms that efficient transportation operations are critical for connecting businesses and economies globally. The effectiveness of transportation operations, though, relies heavily on the integration of effective logistics management. Logistics management encompasses the coordination, planning, and execution of activities involved in the movement and storage of goods. The purpose of this paper is to provide a review of the relevant literature to evaluate the importance of logistics management in transportation operations by examining its respective roles in streamlining supply chains, reducing costs, and improving competitiveness to achieve the sustainable growth that is needed to compete in the 21st century globalized marketplace. Following this review, the paper provides a summary of the research and the key findings that emerged from the relevant literature. The insights gained from this research will contribute to the field of global transportation and logistics management and provide valuable guidance for logistics management practitioners and policymakers alike.
Review and Discussion
Logistics management plays a crucial role in streamlining supply chains by optimizing the flow of goods, information, and resources across various stages of the supply chain network (Rai et al., 2016). Further, logistics management also involves developing and administering effective inventory control, ensuring the right amount of inventory is available at the right time and place. In this regard, Johnson (2009) reports that, Use proactive strategies to minimize
Inventories. Because inventories are proportionate to lead time, many best practice strategies center on reducing lead times. These strategies are many and include just-in-time, vendor-managed inventory, demand and forecasting methodologies, supplier integration, reducing lead times and taking more risk, among others (p. 23).
Effective logistics management also involves optimizing warehouse and distribution networks by strategically...
…as geographic proximity to customers, transportation infrastructure, and labor availability to identify optimal warehouse locations. Implementing efficient warehouse layout and storage systems can also maximize space utilization and reduce operational costs (Melo et al., 2009).Conclusion
The research was consistent in showing that effective logistics management offers various opportunities to reduce costs within the supply chain network. Optimizing transportation routes, modes, and carriers can minimize transportation expenses through consolidated shipments and the selection of cost-effective options. Utilizing route optimization software can further reduce mileage and fuel costs. Strategically locating warehouses and distribution centers based on factors such as proximity to customers, transportation infrastructure, and labor availability can minimize storage and handling expenses. In addition, the implementation of efficient warehouse layout and storage systems can maximize space utilization and reduce operational costs. Finally, the research also showed that leveraging technology such as RFID and barcode scanning provides real-time visibility into supply chain…
References
Childress, V. W. (2015). Supply chain, logistics, and global economics. Technology & Engineering Teacher, 75(4), 22–27.
Faulin, J., Sarobe, P., & Simal, J. (2005). The DSS LOGDIS Optimizes Delivery Routes for FRILAC’s Frozen Products. Interfaces, 35(3), 202–214.
Johnson, B. (2009). Streamline the supply chain with eight best practices. Materials Management in Health Care, 18(4), 20–24.
Patel, R. (2023, May 18). Maximize Your Logistics Efficiency with Supply Chain Route Optimization Handbook. Upper Route Planner. Retrieved from https://www. upperinc.com/blog/supply-chain-route-optimization/.
Supply Chain There are several different attributes of supply chain management. Among them, some stand out as being more important than other. Key aspects of supply chain management include technology, communication/coordination, inventory control and bargaining power (EAUC, 2014). Bargaining power is important because it dictates the terms and conditions of the supply chain. If the buyer has more bargaining than the seller, then the terms will reflect more on the needs of
(Reza, 2009) This information is building off of the findings from Uthayakumar. This is illustrating how the two tier system can help to streamline operations. However, as time goes by these ideas will become obsolete. The reason why is because they are focusing on particular aspect of supply chain management (i.e. during emergencies and backlogs). Where is it is failing, is through understanding how this strategy could be used when
Supply chain management (SCM) is a method for alleviating the way one company finds the raw materials and other components that it requires to produce a product or service and provide it to its customers. The five basic components of Supply Chain Management are planning, source, making, delivering and return. If supply chain standards are applied then the supply chain management could benefit from it a great deal and it
Supply Chain Management at DIMCO The supply chain relates to the entire cycle and process through which raw materials are purchased, processed and developed in to goods and services which can be traded in the market. The management of such a process would involve creating improvements in the supply chain itself to make it more profitable and efficient for the company (Davis, 1993). Therefore the supply chain encompasses not only raw
Supply Chain Ann Supply Chain Management Annotated Bibliography Chopra, S., & Meindl, P. (2010). Supply chain management: Strategy, planning and operation (4th ed.).Upper Saddle River, NJ: Prentice Hall The text by Chopra & Meindl (2010) is an excellent starting point for this discussion, primarily because it serves as a rather exhaustive introductory reading on the subject. Providing academic explanation of the basic premise of supply chain management and an extensive investigation of the
Supply chain management in FMCG sector Fast Moving Consumer Goods (FMCG) Managing supply of FMCGs Demand and Supply Distribution Channel Traditional channel of FMCGs distribution National Vs Global Presence Products and Services Supply chain opportunities Usage of Supply Chain Management Business development Business performance Cost reduction Revenue Increase Inventory management Overall Business Performance Competitive advantage Future trends Issues in global supply chain management: FMCG sector Multi-channel Supply Chain Management Individual Tagging The FMCG sector is represented as manufacturers and distributors of packaged products. They are also coupled with mega retail brands
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now