Understanding Logistics Management (Logistics Management) – Logistics Management is one of the important components in Supply Chain Management that is used to meet customer demand through planning, implementing and controlling the efficiency and effectiveness of the flow and storage of goods, services (services) and related information from the starting point to the destination point.
Logistics Management can help companies reduce costs and improve services to customers.
This Logistics Management aims to obtain and distribute materials and products at the right place and time with the right amount and at the most cost as possible. Management that involves order processing, warehousing, material / product handling, packaging, and transportation is also a sector that is developing very rapidly in the business world today.
Without the support of good logistics management, production and marketing activities will be very difficult to carry out.
Please to also read definition of marketing distribution channels.
Logistics basically starts with concepts and activities related to the military and defense. The military or the Department of Defense makes use of detailed and extensive planning to gather supplies and people and other equipment to various military locations and bases, this military activity that we now know as the term “Logistics”.
The success of a military action depends very much on the ability to gather information, analyze, adjust or assimilate and take appropriate logistical steps to support their ongoing military action.
This is very similar to a business organization whose operations are highly dependent on the visibility and control of the logistics process that it manages. Therefore, these business-oriented companies also adopt the same principles in maintaining the effectiveness and efficiency of the storage, control, and movement of their merchandise.
Many assume that Logistics is the same as Warehouse. But basically, these two things are two different things. The warehouse is a place to store goods and is one form of logistics activities, while logistics has a broad meaning and process, not just warehousing but also involves the acquisition of goods, handling, controlling, and shipping.
One of the most important parts of Logistics Management is information technology. The development of technology now allows a company to find the product it wants at any time, whether day or night and in any location throughout the world.
Understanding Logistics according to Experts
To be more clear about this Logistics Management, we need to understand what is actually called Logistics itself. The following are definitions of Logistics according to experts:
- Understanding Logistics according to Lukas Dwiantara and Rumsari HS (2004), Logistics are all things or objects that are tangible and can be treated physically (tangible), whether used to carry out main activities or supporting activities (administration).
- Understanding Logistics according to Sondang P Siagian (2003), Logistics is the entire material, goods, tools, and facilities needed and used by an organization in order to achieve its goals and various targets.
- Understanding Logistics according to Yolanda M. Siagian (2005), Logistics is part of the supply chain process that functions to plan, implement, control effectively, efficiently the process of procurement, management, storage of goods, services and information starting from the starting point (point of origin) to the point of consumption (destination point) with the aim of meeting consumer needs.
- Understanding Logistics according to Donald J. Powerox (1995) , Logistics is a strategic management process for the transfer and storage of goods, spare parts, and finished goods from suppliers, between company facilities and to customers.
Understanding Logistics Management according to Experts
Below are some definitions of Logistics Management according to experts.
- Understanding Logistics Management according to Lukas Dwiantara and Rumsari Hadi (2004) , Logistics management is a series of planning, organizing, and controlling activities in the activities of procurement of records, distribution, storage, maintenance and elimination of logistics to support effectiveness and efficiency in efforts to achieve organizational goals.
- Understanding Logistics Management according to Private (1990: 322), Logistics Management is a responsibility to create and regulate the system in order to overcome the flow of raw materials and finished goods.
- Understanding Logistics Management according to Donald J. Bowersox (1995), logistics management is a company activity related to location, facilities, transportation, inventory, communication, administration, and storage.
- Understanding Logistics Management according to Subagya (1994), Logistics Management are activities that aim to achieve optimal efficiency in utilizing goods and services.