Launch of new qualification – BCom in International Supply Chain Management
Six important tips for effective logistics management
What do you think about when you hear the word “logistics”? If you think it’s the transport of goods from point A to point B, you’re half way there.
Logistics is the detailed organisation and implementation of a complex operation. A supply chain comprises all the activities associated with the flow and transformation of goods, from the raw materials stage through to the final consumer. It’s a sequence of events intended to satisfy a customer or end user, and it’s made up of various core elements or processes, including manufacturing, distribution, transport, warehousing, inventory control, materials handling and procurement.
With so many elements and processes involved, logistics is a little bit like juggling… When the system’s working properly and you’re in a good rhythm, everything slots into place. But when one balls drops, the entire thing can come crashing down. The key to any effective supply chain is setting up systems that ensure a smooth process from manufacture to distribution.
The impact of the product lifecycle on business logistics
According to Jooste (2014), marketing is defined as “… the process by which organisations satisfy the needs of consumers by creating, communicating and delivering value for customers in the form of ideas, goods and services to facilitate satisfying exchange relationships, in ways that benefit both organisations and customers”.
Pienaar and Vogt (2012) state that business logistics is “…concerned with the inbound movement of materials and supplies and the outbound movement of finished products. The goal is the delivery of the finished products required by the marketing department to the point where they are needed and when they are needed in the most economic fashion.”
So, in terms of Pienaar and Vogt’s definition, logistics’ key function is to convey inputs into the organisation in the form of materials and components etcetera and then deliver the end-goods that were developed by means of the transformation process (operations) to consumers at the right time, the right place and price to the right person in the right condition and quantity. The relationship between the two functions is that of co-dependence; marketing cannot survive without logistics and logistics has no place in the economy without the need-satisfying offerings that are uncovered and designed under the umbrella of the marketing effort.
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