Logistics Administration


What is Logistics Administration?

Logistics administration is the set of operations and strategies that a company must implement. This, to take your goods efficiently to the end customer.

That is, through this type of administration, those resources that are necessary for the company to develop its economic activity are managed.

The logistics administration covers the identification of the product in each phase of its transport, the storage of goods, among others.

The correct logistic administration assumes, therefore, that a firm is able to provide its clients to the extent of their demand. In turn, you must ensure that the business generates an economic benefit.

Then, logistics management requires the coordination of tasks of storage, transformation and distribution of productive elements to the final consumer. Thus, the lowest possible associated cost is sought.

Through an optimal logistics administration, it's possible to control more efficiently a chain of processes and supply control that ultimately affects the economic health and profits of the company. All this design is detailed in the strategic plan of the organization.

Basis of logistics administration

An appropriate logistics administration should be based on speed. In other words, the firm must be able to face its operations by reducing as much as possible the average response time in each of its phases of the distribution chain.

Additionally, there must be a very strict control in terms of quantities and locations in each part of the production process. That way, savings and resource optimization are sought.

In response to the evolution of the markets and their characteristics, different concepts in economics and marketing have appeared that pose a guide for logistics management, such as cross docking. In simple, this is a model that seeks to avoid prolonged storage of goods.

Elements that hinder a good logistics administration

Any situation that may go against or slow down the efficiency or effectiveness of the supply chain makes logistics management difficult, such as:

- Repetition or duplication of processes.
- Problems arising from poor or low inventory turnover.
- Waste of resources or error in the identification and estimation of the cost of the input or merchandise.
- Excessive number of legal, fiscal or bureaucratic obstacles.

Read more articles in our blog.

Share on Facebook Share on Twitter Share on LinkedIn
Back to top

Home | Privacy Policy | Terms of Use | Cookie Policy

Copyright 2011 - 2022 - All Rights Reserved