What is logistics management?
Logistics management is the process of delivering goods, services and information to the customer. It involves management of the supply chain, taking the goods from their place of origin all the way to the end user. Everything from sourcing the goods to delivering it to paying customers is included within the supply chain, and good logistics management can save businesses money and improve customer satisfaction.
There are some key considerations within logistics management:
- Sourcing the right quantity of goods
- Sourcing the right quality of goods
- Making the goods available to the customer at the right time
- Pricing the good appropriately for the customer
- Delivering the goods to the customer
The role of a logistician
A logistician, or logistics manager, is a job role which involves organising and managing a business’s logistics. The logistician’s salary is justified by the savings they make for the business by streamlining logistical processes. There are a number of responsibilities that a logistician has:
- Risk management
A good logistician needs to be aware of the risks involved within their logistical processes and manage them appropriately. If there is a way to transport goods cheaper, but the goods will move slower, does that risk the business’s ability to then sell those goods? These are the types of risks a logistician needs to consider when making logistical decisions.
- Understanding customers
The logistician needs to know what the customer wants, when they want it and what price they are willing to pay for it. If products are purchased at too high a price at the top of the supply chain, they might not be profitable by the team they reach the customer. Knowing how the customer’s mind works is an important part of the job.
- Developing relationships
Developing strong relationships with suppliers, goods transportation companies and even those in charge of border control etc. will be important for securing the right deal and maintaining business long into the future.
- Movement of goods
Obviously, a big part of the job is actually ensuring that the goods are delivered from A to B. A strong understanding of logistics and all transportation types from freights to the route delivery lorries will take is needed to plan effectively.
- Improving processes
Of course, the main role is to take all of these other points into consideration and somehow improve the logistical process. How can the goods be transported faster, cheaper and more reliably than before? Whether it’s optimising warehouse management or evaluating operating procedures, savings need to be made.
Ordnance Survey, alongside our partners, has been helping logisticians to make their processes more efficient for many years. Using our in depth address data, our partners are able to create software which speeds up the delivery process and reduces failed deliveries.