Logistics information plays an important role in the achievement of the goals of the organization, regardless of its size. Logistics can be referred to as an enterprise planning network used for the purpose of information, material management and capital flows. In the words of a layman, it can be described as delivering products and/or services at the right time, for the right price, and in the right condition. When seen in the modern day competitive business scenario, it includes complex information along with importance to the control and communication systems of the organization.
Logistics has evolved in the present very competitive business environment and is primarily concerned with the efficient and effective management of the project life cycles of the organization and its resultant efficiencies. It can be described as a process that involves the total supply chain management to enable achievement of the business objectives of the organization.
The role of a logistics manager has changed significantly, and they are now entrusted with the task of not only ensuring delivery of products and services, internally or externally in the organization’s premises, but also to ensure the development of logistics systems for optimal utilization of the available resources of the organization beside the achievement of business goals.
Logistics does not refer to a single activity performed for delivery of goods, it extends to delivery of goods at the right time, at the right place, in the right condition and at the right price. The logistics manager ensures that no fraud is committed during the logistics process and the logistics systems run in accordance with the predefined plans and policies of the organization. An effective and efficient logistics system ensures the smooth functioning of the organization and it is rightly considered as an integral part of the plans of the organization.
The plan must be clearly defined so that there is no confusion in the minds of the logistics team. This logistics information, provided with clarity, can help to accomplish the desired objectives of the organization. Its aim must be to accomplish the normal functions of logistics under strict deadlines and in conformity with business goals.
The logistics team works under predefined objectives to ensure that the product is delivered as and when needed, for an economical price and in the right condition. It may use the services of various modes of transportation such as trucks, buses, trolleys, courier companies, flights, boats or outsource the task to third-party logistics (3PLs).
3PLs are organizations which specialize in outsourced logistics services with expertise in pick-up and delivery of shipments on the behalf of their clients. They also make sure that any consignment is sent on the most economical and optimal route keeping in view the time and cost factors. Third party logistics are also beneficial in providing economies of scale as they can combine several orders from various customers into a sole shipment. They can also decide on various alternate routes available in cases of delay at the receiving locations of the consignment.
Thus, logistics do play an important role in the execution of normal tasks associated with an organization. The organization must make necessary plans and guidelines to ensure that their logistics information system is functioning smoothly at all times.