What is logistics management?

   

By Mauro Libi.-   Business management it is conformed by diverse areas. All of them are important, they need to work together to achieve a great balance. Probably, these areas are built by other subareas.

     Okay, something is for sure and is that all the areas have something in common: Logistic management. But wait, what is logistics management? What do they mean when they say it? What it could be?

     Well, we understand by logistics management an action made by an organization which their main reasons are to get, to accede and to use the resources required to develop the company work. In other words, is an corporative strategy to make a responsible use of the resources, always doing productivity, profitability and efficiency as a goal. In addition, they have to reduce the costs and focus on the product increment.

     A good logistics management has to be made but it is necessary to define the management indicators. These are called KIPs. They are values, quantitative or qualitative. They are factors which allow the planned objectives compliance checking.

     These indicators give information about the level success of it.

     The most used are: KIPs of production, KIPs of storage and inventory, KIPs of supply of purchase and KIPs of transport and distribution.

     In conclusion, the logistics management should care about all the processes, the end of duplicity of tasks, bureaucracy and empty areas of production.

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