Logistics Management.docx - 3.0 Definition Of Logistics...

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3.0Definition OfLogistics ManagementLogistics management is a supply chain management component that is used tomeet customer demands through the planning, control and implementation of theeffective movement and storage of related information, goods and services fromorigin to destination. Logistics management helps companies reduce expenses andenhance customer service.The logistics management process begins with rawmaterial accumulation to the final stage of delivering goods to the destination.Byadhering to customer needs and industry standards, logistics management facilitatesprocess strategy, planning and implementation.Logistics management involvesnumerous elements, including:i.Selecting appropriate vendors with the ability to provide transportation facilitiesii.Choosing the most effective routes for transportationiii.Discovering the most competent delivery methodiv.Using software and IT resources to proficiently handle related processesIn logistics management, unwise decisions create multiple issues. For example,deliveries that fail or are delayed lead to buyer dissatisfaction. Damage of goods dueto careless transportation is another potential issue. Poor logistics planning graduallyincreases expenses, and issues may arise from the implementation of ineffectivelogistics software. Most of these problems occur due to improper decisions related tooutsourcing, such as selecting the wrong vendor or carrying out delivery taskswithout sufficient resources.To resolve these issues, organizations should implementbest logistic management practices. Companies should focus on collaboration ratherthan competition. Good collaboration among transportation providers, buyers andvendors helps reduce expenses. An efficient and safe transportation provider is alsovital to business success.4.0Definition Of Transportation Management5
Atransportation management system (TMS)is a subset ofsupply chainmanagementconcerningtransportationoperations and may be part of anenterpriseresource planningsystem.A TMS usually "sits" between an ERP or legacy order processing andwarehouse/distribution module. A typical scenario would include both inbound(procurement) and outbound (shipping) orders to be evaluated by the TMS PlanningModule offering the user various suggested routing solutions. These solutions areevaluated by the user for reasonableness and are passed along to the transportationprovider analysis module to select the best mode and least cost provider. Once thebest provider is selected, the solution typically generates electronic load tenderingand track/trace to execute the optimized shipment with the selected carrier, and laterto support freight audit and payment (settlement process). Links back to ERPsystems (after orders turned into optimal shipments), and sometimes secondarily toWMS programs also linked to ERP are also common.Transportation managementsystems manage four key processes of transportation management:I.Planning and decision making-D

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Term
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sradawabggung

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