Logistics care encompasses a wide range of activities that can be found in a retail store, warehouse or any other type of commercial establishment. Supply chain management is a term that is often used to describe logistics, but it has nothing to do with supply management. Logistics can be divided into three main categories: asset control, process control and operations management. This article will be covering logistics in the order management category.
Assets. Assets are the physical items, which are bought and sold. Items are bought and sold via transportation, storage, dispatch, freight forwarding, retail sales and returns. The logistics of this activity requires the ability to buy and sell and also to track inventory in accordance with the customers’ requests. All this is very important in today’s world.
Process. Process management is the discipline of keeping track of processes. When the chain of events is broken down in a way that can be easily understood and controlled, that is when the process becomes a part of logistics.
Operations. Operations can be divided into many different operations, such as marketing, procurement, customer support, retail sales, freight, inventory control, bulk handling, product disposition, work in process, return and stock control and documentation. In each of these divisions, there are a number of specific processes that have to be managed.
Logistics care is the process of taking these various processes and working out how they can be aligned to work in harmony for the purpose of reducing costs and increasing customer satisfaction. Companies that cannot manage their processes will find that the costs of running the business increase, while the ability to provide good service to the customers will suffer. This is because a company cannot compete if it cannot keep its processes under control.
Logisticians have the task of developing a system that will allow companies to take account of all these processes in an easy to use manner. It is for this reason that when companies make acquisitions they should look for consultants who specialize in logistics care.
Customer requirements. Every day, a customer calls up a company with a problem and needs some solution. This problem can be quite complex in nature and therefore a consultant needs to have a complete picture of what the customer wants, in a methodical way.
Good quality delivery. Customers expect to receive the product or service that they have requested in a timely manner. If the delivery of a product or service is delayed, the customer will become angry and the company will lose out on a large profit margin.
Product performance. A company will not prosper if it produces a product or service that does not satisfy its customers. Logistics care has to include tracking of the performance of the product or service so that any issues can be dealt with quickly and efficiently.
Customer satisfaction. Customer satisfaction is very important for any business and is achieved when customers are able to return to the company again for any further assistance that they require.
Tracking the use of products and services. Logistics care needs to involve tracking inventory in terms of quantities sold, amounts of goods in storage, price of the product and any returns. Any misplacement of the product needs to be rectified as soon as possible to prevent the company from losing out on profit.
Estimating future expenses. Logistics care needs to involve estimating the future costs of production and is a very important factor in the profitability of any business. The money available from sales will be required to be reinvested to guarantee continuous customer satisfaction.