Understanding the Basics of Logistics Management: A Comprehensive Guide




The logistics and supply chain operations have numerous layers, from gathering raw materials to creating finished products to delivering the products to end consumers. Many online shoppers nowadays expect quicker and more secure deliveries. A study by Statista has indicated that around 41% of consumers hoped to receive products within 24 hours. To ensure speedy operation at all stages of product delivery, it is important for businesses to have an effective logistics management system in place.


What is logistics management?

Logistics management means the supply chain process that deals with the movement of goods between two locations and their storage. It aims to ensure efficient transportation of goods at lesser cost and enhanced client satisfaction.


Logistics management types


The different types of logistics management include the following:


1) Supply management: This involves planning, ordering, and receiving products or raw materials within a specific period.

2) Production management involves combining different components or materials to create the end product.

3) Distribution management involves transporting goods to grocery or retail stores' storage units. It involves processes like loading, unloading, and transportation.

4) Product returns and reverse logistics: This deals with unused products returned by clients or extra resources that may need to be reclaimed after the completion of production processes.


Logistics management functions


The different functions of logistics management include the following:


Order processing


This entails the different processes involved in processing a client order as soon as a business receives it. This includes checking the terms of delivery, initiating payment, checking stock levels, and confirming the order. Efficient order processing is a great way to ensure client loyalty.


Inventory management


This involves always maintaining the optimal stock levels to enable businesses to fulfill client demands. Keeping too little or too much stock can cause financial losses to a company. Proper inventory management is necessary for making a business profitable.


Storage and material handling


Material handling determines the way in which raw materials or finished products move in the supply chain. Inefficient operations like delivery delays or product damage can affect profitability. Similarly, inadequate storage can lead to space wastage in warehouses or storage units. Efficient logistics management will ensure maximum space and resource utilization.



Storage of goods before delivery is referred to as warehousing. Appropriate warehousing will help reduce labor costs and offer businesses better inventory control.




This component of logistics management involves choosing the right packaging materials to limit product damage during transit. Packaging can also help a company to further its marketing goals through careful branding.



Transportation in logistics management deals with moving goods from the vendor to the consumer. According to studies, transportation costs are one-third of the total logistics costs. This involves multimodal transportation like rail, road, water, and air.



Businesses should always keep track of logistics processes like inventory stocking, warehousing, and transportation. They should also be able to track delivery vehicles, delivery routes, order requirements, and driver schedules. Monitoring can help them improve business efficiency.



Logistics and logistics management are complex processes. Efficient logistics management is necessary for ensuring the success of a business. Mojro, an AI-powered logistics optimization solution, can help businesses optimize their logistics processes to achieve effective logistics management and boost client satisfaction.


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