Report on Logistic Management

Running Head: LOGISTICS MANAGEMENT 1
Supply Chain Management
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LOGISTICS MANAGEMENT 2
Logistics Management
1 (a) Logistics Management Activities
Logistics involves physical management of the delivery of commodities to various
consumers including manufacturing firms and final product consumers (Carter & Liane, 2011).
It majorly involves the movement of goods and services to the end user. However, logistics
should not be taken to mean transportation since it is a complex process with various other
activities. Order processing is one of the core logistics activities. This means receiving and
accepting client orders and ensuring payments and delivery is done duly. It entails the systems
that are used by an organization to receive customer orders, check status of commodities being
brought to stock as well as those that are already in stock and communicating to clients of their
existence in stock (advertising). The ordering stage also encompasses involving, customer credit
verification process, checking inventory status and recording accounts receivable. For this
reason, Order processing can be defined as a complex area that requires to be highly automated
to simplify operations. This is also related to material handling at the warehouse and during
transportation.
Material handling specifically takes place in a storage area, also called warehouses.
Majority of material handling usually takes place at the warehouse and during transportation.
However, transporters are advised to reduce instances of material handling during transit to
eliminate and reduce the likelihood of changing the form of the items due to breakage, pilferage
and wastage. In addition, material handling inside the warehouse and during transit is
emphasized upon because the process is rarely a value-addition undertaking. Any losses during
this activity is unnecessary cost. It is therefore to minimize material handling where possible. A
careful analysis of material management processes and keeping track of material flow can be

LOGISTICS MANAGEMENT 3
used as a money saving strategy. The warehousing activity provides room for holding items
before they are delivered to their destination. It is imperative to have the right equipment
installed at a warehouse to improve handling. Inventory control ensures there is no wastage,
especially during production and warehousing. This trickles down to the transportation
management function. Transportation is a major activity as it facilitates the physical delivery of
goods from the company to the end user. It connects all channels of distribution. Transportation
cost can be reduced through better inventory management. Packaging helps avoid breakages and
spoilage so that they can be transported easily. Packaging can also be done for items going to the
warehouse. Inventory management encompasses the overall objective of inventory management.
It entails the tradeoff between the level of inventory in stock and the level of inventory that is
required to satisfy customer needs. Inventory management is related to the control of costs that
are related to stock movement such as holding cost, storage cost and the risk of items become
obsolete while in stock. In essence, these costs account for at least 15 to 50% of the total
inventory on a yearly basis. Either much of the merchandize becoming obsolete in the recent
times especially technologically affiliated commodities such as phones or computers becoming
rapidly obsolete many organizations globally are giving inventory management the priority.
The activities of Logistics management are closely knit as each plays a crucial supporting
role on the other for the success of the logistics process. Essentially, the process begins with
receiving and accepting orders. Where orders are accepted, the items on the order have to be
sorted and packaged for delivery to the client. Packaging takes place at the warehouse where
other activities such as inventory control take place. Inventory control is important as it ensures
that there is enough stock to satisfy all customers where possible. Packaged good then have to be
transported using a select channel of transportation that also allows best practices in material