Logistics management refers to the comprehensive administration of a company’s resources (products) from the initial construction phase of the product until the moment it arrives at the customer’s door.
With an optimized logistics management process, companies can dramatically reduce expenses, increase customer satisfaction, and improve relationships with suppliers and distributors. Here you will find how.
In this article, we want to give you some keys to logistics management and what its importance is in organizations. So, if the International Logistics Production Administration catches your attention, we invite you to continue reading…
What is logistics management?
Simply put, logistics is the process of moving materials (whether raw materials or final products) from one place to another, whose final destination is the customer or end user. Therefore, logistics management is the process of planning and coordinating the storage and movement of these products between different points in the supply chain.
Logistics management requires careful coordination to ensure that everyone involved in a product’s life cycle is in the right place, at the right time, and to ensure that the final product always reaches the right destination quickly.
In short, we must understand that logistics management is all those activities and processes that are carried out in a company and that integrate planning, organization, and control in the production, distribution, and supply departments.
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What is logistics management for?
Logistics management is essential to obtain the productivity of an organization, guaranteeing customer satisfaction, optimizing, and making a company’s logistics processes more efficient.
According to what was expressed by the business and entrepreneurship magazine, to achieve a good functioning of logistics, it is necessary to take into account five aspects to ensure that an organization functions efficiently.
5 keys to logistics management
- Suppliers must deliver the appropriate raw materials for the production of products or for the provision of services.
- Establishing the correct quantities allows you to guarantee better use of resources and minimize the loss of materials.
- You have to get things just in time where they need to be. “Just In Time” methodology is based on this principle and has been the key to the success of various Japanese companies.
- It is vital that your business model targets the “ideal” customer segment so that you can put your product in the hands of the right customer, at the right time and in the right place.
- You should choose those solutions that provide greater cost advantages, but without compromising the quality and conditions of the product.
Globalization is impacting the development of logistics and more and more companies perceive the importance of measuring, monitoring, and controlling logistical failures, deficiencies, and contingencies, which is why today more than ever there is a need to train human talent that studies the management of International Logistics Production and specializes in logistics operations that adapt to new digital purchasing and selling trends.
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Supply chain and logistics, what is the relationship?
Logistics and supply chain management were once well-known terms in the military to describe the processes involved in transporting essential equipment and supplies to troops on the front lines. Today, these terms do not have a military association but are linked to the complexities and extensions of warehouses such as those of Amazon.
Since logistics specifically refers to the movement and storage of goods, it can be considered as an activity within the broader network that is the supply chain. On the other hand, supply chain management refers to the strategy and execution of the entire system involved in the production and delivery of a product or service, from the initial phase of the acquisition of raw materials to the final delivery of the product.
While logistics focuses primarily on meeting customer needs and expectations (on time and with good quality), supply chain management emphasizes optimizing all the various processes involved in the creation and delivery of goods in order to obtain a competitive advantage.
Main objectives
In addition to the objectives that can guide a company’s strategies and practices, the main goals of logistics management are related to reducing costs, increasing sales, and improving customer satisfaction with regard to the movement of goods. Goods
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Benefits of logistics management
- If your company optimizes its logistics processes, you can see the following benefits.
- Increased customer satisfaction and sales in general, as well as a decrease in company expenses, since 52% of customers admit that they would pay more for a product if they were guaranteed good service.
- If a consumer orders a product that arrives on time and in good condition, your customer will most likely recommend your company to their professional and personal circle, increasing both Customer Lifetime Value (CLV) and conversion rates.
- The results of this positive experience naturally create a broader clientele due to the value your company brings to the customer, along with the growing reputation that your company offers a reliable and stress-free customer experience.
These benefits come together to provide a greater return on investment, giving your company a competitive advantage over competitors.
What types of logistics management?
There are four main types of logistics management: inbound, production, outbound, and reverse.
- Inbound logistics
management
Inbound logistics focuses primarily on moving resources from suppliers to a company’s warehouse, and from there to production facilities. This process includes the transportation of raw materials, construction tools, essential parts, and in some cases even office equipment and supplies. Managing inbound logistics is critical, as supply disruptions can cause production delays that impact the rest of the supply chain.
- Production logistics management
Production logistics consists of all activities related to the different phases of the manufacturing process. It may include planning and coordinating the different materials from various suppliers that are needed during production, as well as the transportation of goods from factories or production centers to warehouses.
- Outbound logistics management
On the other hand, outbound logistics management is the process of safely and efficiently transporting the final product from warehouses to its distributors, who perform last-mile delivery, so that the product reaches its final and correct destination… Examples of this type of logistics activities include loading, unloading, and tracking (often repeated) of materials and/or finished products, as well as inventory management.
- Reverse logistics
Finally, reverse logistics is the process of returning goods from the customer to the distribution center. The reverse logistics process includes the management of returns and refunds, but also the recycling or reuse of materials that were not used during production. Often, this material is included back into stock or inventory and placed in the company’s warehouses or returned to its suppliers.
In addition to these four main categories, there are other types including, but not limited to, third-party (3PL), fourth-party (4PL), and green logistics. This, of course, varies by sector and depends on each company and its practices.
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What is an MBA in Logistics?
An MBA in Logistics is a postgraduate degree focused on combining business management skills with specialized knowledge in logistics and supply chain. This type of training is relevant for professionals seeking to lead and improve logistics processes within an organization, improving operational efficiency and strategic decision-making.
What are the objectives of MBA in logistics?
MBA program in logistics will generally have the following academic and professional objectives:
- Understand and apply methodologies to identify areas of improvement in operational efficiency, reducing time and costs in the supply chain.
- Develop skills to effectively coordinate all phases of the supply chain, from the acquisition of raw materials to final delivery to the customer.
- Evaluate different logistics approaches, such as shipment consolidation, route optimization, and warehouse management, to maximize efficiency in product distribution.
- Improve the ability to make data-based decisions in highly complex logistics situations, considering factors such as costs, delivery times, and service quality.
- Explore and implement technological solutions, such as information systems, automation, and data analysis, to modernize and optimize logistics processes.
- Apply advanced techniques to manage inventories efficiently, minimizing storage costs while guaranteeing product availability.
- Analyze transportation options, evaluate costs and performance, and develop strategies to improve the effectiveness of the transportation logistics system.
- Identify opportunities to reduce costs throughout the supply chain through process optimization, negotiation with suppliers, and efficient resource management.
- Develop skills to identify, evaluate, and mitigate risks in the supply chain, ensuring operational continuity in adverse situations.
- Use analytical tools to examine operational data and make decisions based on accurate information, improving visibility and control in logistics management.
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Who is the target audience of this MBA?
- Any professional in the logistics sector who wants to boost their professional career. They include directors, consultants, engineers, analysts, managers, and other profiles in the field of logistics.
- Graduates in Business Administration, Economics, Finance, International Trade, Marketing, International Relations, and other related areas who wish to develop a managerial profile in the world of logistics.
- Industrial Engineers interested in logistics management.
- IT professionals focused on logistics management systems.
- Entrepreneurs seeking to develop businesses related to logistics.
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Job opportunities for MBA in logistics
In general terms, an MBA with a specialty in logistics grants the following professional opportunities:
- Logistics director
- Warehouse manager
- Production manager
- Director of operations
- Business manager in organizations in the logistics field
- Purchasing and supply director
- Production planner
- Logistics consultant
- Supply chain manager
- Inventory analyst
- Transportation Specialist
What is better for me, a traditional MBA or an MBA in Logistics?
The choice between a traditional MBA and one specialized in Logistics will depend mainly on your professional objectives.
A conventional MBA offers extensive business knowledge and multidisciplinary training adaptable to various sectors.
Instead, the MBA in Logistics focuses specifically on developing management skills, with a focus on supply chain and logistics.
Opting for an MBA specialized in Logistics is recommended if you are clear that your interest is focused on this specific field. This approach will give you specialized knowledge and prepare you for managerial roles in logistics management.
However, if you are still unsure of your sector preference, a traditional MBA might be more suitable, as it offers generalist training that adapts to various industries.
Study an MBA in Logistics 100% Online
The MBA with an emphasis in Logistics from VERN and IBAS had been designed with the objective of providing students with a deep understanding of the fundamentals of business management.
This program focuses on the competitive analysis of the environment for the formulation of successful strategies. Its main focus is the training of logistics managers, deepening the knowledge of tools and systems to professionally manage key aspects such as the supply chain, stock management, warehouses, purchasing, and transportation, among others.
In addition, it seeks to enhance the financial, commercial, and economic knowledge necessary to carry out effective analyses that support critical decisions.
This MBA is taught completely online, offering students the flexibility to undertake their academic responsibilities from anywhere and at any time of the day.
At VERN and IBAS we have complete training on this matter in which we detail in total depth how you should approach this preparation, its content, the time you should dedicate to it, etc.
If you are interested, join us
Contact with IBAS: +201000498154