Efficient production output in a company is dependent on a number of factors. One of the most important factors that help businesses achieve business goals successfully is proper logistics management.
In general, logistics reiterates the movement of materials from point to point. But, as far as project management is concerned, there is much more to logistics than the seamless movement of goods. In large and complex projects, logistics could also include location of the facility, proper planning and forecasting, transportation route management, inventory management, warehousing, packaging, insurance, coordination and maintaining the flow of the transportation of goods.
Logistics for project management could include:
Transportation of goods via road, rail, sea or air
Planning and coordination of packaging and transportation
Activities to ensure effective storage and its supervision
Warehouse selection and plant supervision
Effective loading and discharge operations
Ensuring cargo insurance
Thus, logistics in project management means the process of managing the procurement, movement and storage of goods form end to end, in a holistic and systematic way. This could be within the company or within the marketing channels or even global movement of goods.
Effective logistics, or the lack of it, impact the bottom lines of businesses. Efficient logistics can ensure maximum profitability by fulfilling orders in a cost effective way. This is why logistics plays an important role in business today. Without proper support from logistics, none of the other functions of a business can success. Marketing, sales and project execution all depend on proper logistics.
Initially, logistics was a term used by the military. But, soon the term was used in a much bolder sense to cover businesses and other activities. Although the term logistics is relatively new, the movement of goods is nothing new. Nor are the activities undertaken to ensure the seamless movement of goods. However, as distances began to grow and as projects became more and more time sensitive, the importance of proper logistics began to increase. Add to this, the effect of globalization and the emerging free markets, there is so much competition between companies that more and more customers need the precise delivery of products at the right time, in the right place and at the right cost.
When you are selecting a logistics partner, it is important to remember that different companies offer different services. If your project depends on the timely delivery of products, then, choosing the right logistics partner includes getting someone who takes the right decisions for the movement and safe delivery of products. Thus, the company must be able to resolve any order-related problems. For maximum effectiveness, the solutions that the company provides must be tailor made to suit your particular requirements.