8 Important Roles of Logistics in Supply Chain Systems

12^th
Nov

The success of any organization dealing with goods is closely centred around strong supply chain management. SCM plays an important role in maintaining and optimizing the budget of companies/organizations that produce goods or services. Just like supply chain systems are essential for the maintenance of an organization, logistics are pivotal to keeping the supply chain strong. It makes sure to meet the customer's needs and requirements by looking after the planning, implementing, and controlling of the flow and storage of goods and services. Therefore, it would not be wrong to state that Logistics and Supply Chain training is essential for the success of any business venture. 

It is an accepted fact by every successful organization that the improvement in their sales is credited to well-organized logistics. Good logistics management helps in overcoming supply chain problems and risks. For example, when the freight volume grows and transportation becomes more complicated, the need for good logistics management arises. 

With the emphasis on logistics and supply chain in the global market, the need for certified and experienced professionals has also witnessed significant growth. To establish a career in the field, it becomes essential to earn the credential that validates your knowledge and insight on the subject. The Logistics and Supply Chain Management courses in UAE are designed to offer a comprehensive insight into supply chain operations. Knowledge of these will make a professional proficient in the laws and regulations that govern the transportation of goods, manufacturing processes, compliance, and many more.

Difference Between Logistics and Supply Chain

Although both are the same parts of a system, logistics and supply chain have differences of their own. Logistics is a simple and narrowly focused concept that deals primarily with the globalization of resource management.;

Supply chain, on the other hand, is a much more complex term. It does not just deal with logistics but also works towards ensuring end-to-end optimization within the enterprise and with other counterparties as well.

Therefore, implementing logistics management means looking after the entire network structure of supply chain systems. The main outcome of logistics management is to achieve maximum competitiveness, increased productivity, and enhanced profit.;

8 Key Aspects of Logistics

It is clear that logistics training is essential for the effective management of a company’s operations. Logistics and Supply Chain Management courses in UAE familiarize professionals with some of the key aspects of logistics. These are:

➤ Production Logistics

Production logistics is all about controlling and streamlining the supply chain operations from start to end. This process looks into organizational concepts, layout planning, production planning, and control.

➤ Distribution Logistics

Distribution logistics looks after the delivery of the finished products to the customers. The important steps involved in this are order processing, warehousing, and transportation. Transportation can be carried by different means, such as air, rail, water, and truck transportation. Distribution logistics looks into other sub-factors as well. These are warehousing and storage, motor vehicle repair, and many more. 

➤ Disposal Logistics

Disposal logistics, or reverse logistics, is a term used for operations that look into the reuse of products and materials. This process is primarily concerned with reducing logistics costs, enhancing service, and saving natural resources.;

➤ Maintain a Competitive Edge

Successful logistics management is important to ensure customer satisfaction to maintain a competitive advantage over competitors in the market.;

➤ Customer Retention

Well-executed logistics management helps in strengthening relations with the customer. It promotes customer satisfaction and ultimately customer retention. Customer relation also helps in augmenting immediate monetary gain, contributing directly to long-term business growth.

➤ Finished Product

Logistics management has a direct hand to play in bringing in new raw materials for the manufacturing process. Storage of enough products ensures that there is enough supply available when unexpected demands or situations arise. 

➤ Good Visibility

Logistics management helps in creating good visibility for the organization's supply chain. It helps in documenting and analyzing historical data and keeps track of the real-time movement of goods into and out of a business.

The Main Functions of Logistics Within Supply Chain Systems

➤ The first function of logistics is to look after the warehouse design and management. Within this, logistics ensure the effective functioning of various other tasks. These include the design of storage facilities to match the requirements for the storage of products, implementing various automation solutions, and many more.

➤ The second role of logistics is to manage the formation of packages. The other sub-tasks involved in this are packaging, tracking, accounting, and controlling goods and services in accordance with the needs and demands of the customer.

➤ The main part of successful Supply Chain Management is the transportation of products. Therefore, logistics plays a vital role in providing cargo carriers and vehicles with faster transportation. Logistics management also looks after the planning of the best routes, calculating and managing fuel costs, and many more.

➤ While dealing with international deliveries, it becomes essential to deal with customs. Logistics ensures that all the regulations and requirements of the customs are met.

➤ Logistics also comes into play while working with intermediaries. Intermediaries include third-party, non-company resources that have a direct role in the implementation of supply chains. The main step involved in this is providing intermediaries with the best ratio of quality to cost of services to maintain a strong, long-term, and reliable relationship with them.

➤ “Reverse logistics” is the term used when professionals in the field come up with the best rules and routes to transport and dispose of returned or discarded goods.

➤ To sum up, the role of logistics is definitely a crucial one in supply chain management. Its importance is reflected in the rise of demands for professionals in the field. Attending the Logistics and Supply Chain Management courses in UAE will help you earn the credential that validates your proficient knowledge and expertise in the important concepts of the subject.

Message from the Author

If you’re looking to enrol for any Logistics & Supply Chain training in Dubai, get in touch with Learners Point Academy. To learn more, visit the website: https://learnerspoint.org/, give a call at +971 (04) 403 8000, or simply drop a message on WhatsApp.

Learners Point Academy is a KHDA and ISO 9001:2015 accredited training institute in Dubai.

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