Challenges In Logistics Management

863 Words4 Pages
Another way would be to perform logistics activities in a connected supply chain. To avoid costs of inefficient supply chain arrangements, the company has to create informational and operational processes necessary to carry out orders, receipts, payments and shipments. The system in place in relation to logistics should keep records and be able to meet the demands of a constantly changing business environment. Through this integration of supply chain with logistics goods and services of the company are able to be moved efficiently. The business should be able to monitor the supply chain data through dashboards and visibility tools. Rules of business are significant for more accurate assessments when monitoring activities and inventory ensuring…show more content…
Among the challenges is that of flexibility. Supply chain operators are forced to be flexible since most companies, especially global companies such as Coca-Cola, manage multiple supply chains and expect these operations to deliver goods on time and to respond to divergent supplier and customer expectations in relation to pricing and packages. To ensure flexibility, supply chain operators need to be able to personalize offerings for multiple customer and market segments. Logistics management need to ensure and increase velocity of supply chains. David J. Closs puts the problem in better words,” while firms are trying to increase product velocity in the supply chain to lower cost by reducing product storage time and damage, the transit times and exposures in-transit increase the product risk for intentional or unintentional damage as well as reducing velocity and ultimate flexibility.” (Bowersox & David,…show more content…
But it turns out the most overwhelming challenge they face is internal collaboration between all these areas. Supply chain operators face agility of customers as another challenge since there is no way of telling what customers will want next. Customers are ever demanding and being offered a wider range of choice options on how their products and services are delivered. This presents new challenges to supply chain operators on how to manage outbound logistics and maintain supply chain resilience (Wieland & Wallenburg, 2013). Logistics providers are faced with a crowded and complex global market and need to form strategies that ensure they stand out from their competitors. Therefore there is a need for such companies to decentralize to deal more effectively with a diverse range of

More about Challenges In Logistics Management

Open Document