Logistics Management Systems: Main Modules and Integration

The process of reverse logistics begins at the point of sale and lasts until final disposal. Fortunately, logistics management software helps businesses make the very best routing and shipping decisions, contain costs, protect investments and track the movement of goods. There is little doubt now that the most rapidly growing cost of doing business in the foreseeable future will be that of energy.

The duties include the storage of manufactured inventory, the transportation of manufactured goods to the point of sale, and sometimes, the shipping and handling involved to get certain products to the end user. The most well known type is sales logistics that moves products from the producer to the consumer. The logistics management takes into consideration every facility that has an impact on cost. It plays an important role in making the product conform to customer requirements. Also it involves efficient integration of suppliers, manufacturers, warehouses and stores and encompasses the firms’ activities at many levels, from the strategic level through the tactical to the operational level. Transportation and logistics are central to your company’s success as it is the physical manifestation of transactions and without transactions there is no business.


For instance, peacetime consumption of ammunition and fuel will be considerably lower than wartime consumption of these items, whereas other classes of supply such as subsistence and clothing have a relatively consistent consumption rate regardless of war or peace. Militaries have a significant need for logistics solutions and so have developed advanced implementations. Integrated logistics support is a discipline used in military industries to ensure an easily supportable system with a robust customer service concept at the lowest cost and in line with reliability, availability, maintainability, and other requirements, as defined for the project.

Meanwhile, it reduces the risk of ordering excess by estimating product demand. An integrated OMS is connected to your CRM and inventory database to complement the sales funnel and provide information for accounting and marketing departments. Additional features include connectivity to popular marketplaces, vendors’ inventories, and multi-currency options. In line with twin goals of eradicating extreme poverty and increasing shared prosperity, experts in the World Bank Group work with developing country policymakers and private sector leaders to increase connectivity and facilitate trade. Developing countries — especially those that are landlocked — face considerable challenges when it comes to tackling trade facilitation issues.

11.2 Logistics

Green logistics describes all attempts to measure and minimize the ecological impact of logistics activities. This can be achieved through intermodal freight transport, path optimization, vehicle saturation and city logistics. Inbound logistics is one of the primary processes of logistics concentrating on purchasing and arranging the inbound movement of materials, parts, or unfinished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores. This increasing complexity has serious implications for the world’s poor, who often are disproportionately disconnected from global, regional – or even local – markets. Poverty is often concentrated in geographic areas that are poorly connected to active economic centers, within and between countries.

These pockets of poverty may be close to dynamic, urban markets, for example, but economically isolated from them. They often lack good connections to financial, economic, information, and infrastructure networks, too. Firms and communities in these areas miss opportunities to develop skilled, competitive workforces; they are not integrated in global production chains and are less able to diversify their products and skills. From warehousing and distribution to expediting critical service parts, we keep supply chains moving. Going back to the auto manufacturer example, the parties involved with the outbound logistics of that supply chain would be the wholesalers and dealers. The factory operations would be in charge of assuring that the right amount of ordered inventory arrives at the dealer at a given time.

Strategic transport planning

It also involves managing warehouse infrastructure and processes — for example, in a fulfillment center, where orders for goods are received, processed and fulfilled . Most companies use warehouse management system software to manage the flow and storage of goods and track inventory. Most vendors of enterprise resource planning software offer TMS and WMS modules, as well as more specialized components for inventory management and other logistics functions.

Business and Management Logistics Explained

Supporting multiple languages and currencies, the system calculates value-added taxes, cross-border fees, and freight forwarding charges. In addition, LMS manages necessary shipping papers, ensuring compliance with both in-country and cross-border regulatory programs. Activities are at the heart of world trade, but they also have unintended consequences on the environment due to the use of land, energy, and other types of natural resources. The significant energy usage by the more traditional means of transportation results in emissions, one of the most prominent of all negative externalities, that in turn causes air pollution affecting human health. One way to reduce such externalities is the (re-)design of the overall network on which logistics activities take place, giving rise to green network design problems, where the minimization of emissions is an integral and explicit part of the objective. This chapter will cover this evolution along with a history of transportation systems.

Given the increasing number of logistical choices available to competing companies, opportunities for the development of more extensive programs for differentiated product distribution present themselves. As an illustration, several years ago a major farm equipment manufacturer, confronted with a growing line of replacement parts and with deteriorating service to its dealers and customers, revamped its parts distribution strategy. Of course, this philosophy has to be applied selectively, depending on the characteristics of a particular product line. 集運 , for example, call for a high level of service regardless of sales volume because they are critical in the repair of idle equipment.

Tags: No tags

Add a Comment

Your email address will not be published. Required fields are marked *