What is Logistics and Transportation Management and Why Is It Important?

Logistics and Transportation - levels, system, manager, definition, type,  business, system

The need for robust logistics and transport management is increasing because of the increase in freight volume.  There are current industry challenges in the business sector that have demanded well-planned logistics and transportation services.

The upward trend in digital marketing has likewise increased the need to meet customer demand making logistics and transport management solutions a primary factor in the success of any company’s operations.

What is Logistics and Transport Management?

Logistics and transportation management are two closely related business units.  They have a common objective to effectively and efficiently transport inventory throughout a company’s supply chain.

It is also referred to as transportation logistics management and is an integral part of delivering goods from suppliers to customers.  Everything and everyone involved in the delivery of the products is encompassed by supply chain management, including transportation logistics management.  

Let’s analyze how these two processes function independently and symbiotically:

  • Logistics refers to the receipt, production, and distribution of goods and materials in the customer-requested amounts to its final destination.  Logistics management deals with the control and supervision of the movement of goods.  It involves a multitude of different factors including:
  • Transportation management
  • Freight and inventory management
  • Materials handling
  • Order fulfillment

Proper logistics management makes sure that the processes are optimized to maximize revenues, cut manual labor, make informed decisions, and exceed customer expectations.

  • Transportation is focused on managing the physical delivery of products.  It is the literal movement of goods from one location to another and is considered a sub-unit of logistics.

The main means by which products are transported or delivered is by land, air, or sea.  Freight trains, trucks, ships, and planes move goods every day.  

In the context of commerce, it is sometimes referred to as transport logistics which includes the knowledge of rules, regulations, benefits, and costs, associated with the different modes of transport.  

The three significant areas of transportation in which a business must engage include:

  • Operations Management
  • Vehicle and Fleet Organization
  • Infrastructure Administration

How Do Logistics and Transportation Work Together?

Effective and efficient logistics management requires a foundation network that will respond to the needs of a business.  Both are areas that impact the service process.  They allow a business to respond to unanticipated issues and improve customer service with zero downtime.

In short, transportation is one element of the process while logistics provides for inventory planning, goods storage, and demand forecasting in addition to delivery.  These processes in the supply chain performance should work together to meet the needs of customers at the lowest cost possible.

The Importance of Logistics and Transport Management

The goals of transportation and logistics solutions should always include these four aspects to measure the effectiveness of the process:

  • Increase revenue
  • Improve operating cost structure
  • Reduce overall transportation costs
  • Improve customer service

When these goals are met, you will have achieved the best benefits of shipping and logistics management that is effective and efficient.

In a more detailed explanation, here are other reasons why it’s important to have a successful logistic and transport management system for your business:

  1.  Optimized Inventory Flows

When your transportation and logistics are effectively managed, your supply chain will run seamlessly because you are able to improve your warehouse’s operational efficiencies, reduce lead times, and save on storage expenses.  With successful logistics and transportation techniques, you can keep your inventory lean.

  1.  Environmental Sustainability

You can reduce your carbon footprint and your environmental impact with a streamlined approach in logistics and an optimized transportation process.  Customers want to work with logistics and transportation companies that consider their environmental goals at heart.

  1.  A Preferred Shipper

Be the gold standard among customer service in the freight industry that tells customers how well you are managing your logistics and transportation processes very well.  Expand your future capacity to avoid the pitfall of having longer lead times because of fewer trucks.

Executing a Rock-Solid Strategy on Logistics and Transportation Management

Partner with Sure Logix a logistics and transport management company in Louisiana to make sure that you will be able to provide the time and attention to grow your bottom line and satisfy your customers.

With fulfilled work for both logistics and transportation management, you will get optimal results that will increase customer satisfaction and keep your company’s supply chain moving more efficiently while gaining operational insight.  You can also significantly cut costs because proper transport and logistics management allows shippers to tap into hidden opportunities for savings.

Melissa M. Taylor

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