Scope of Logistics
The growth of the world logistics market is directly associated with the event of international trade flow and also the current economic surroundings. The Asia Pacific and North America seem to be the foremost attractive markets for supplying, significantly once it involves contract service like third-party logistics. Intra-regional trade rising markets are turning into very important, significantly within the Asia Pacific, and this, combined with high GDP rates.
It is true that earning a logistics degree will make you approach your business professionally and additional tactfully. Moreover, there are a few additional factors that show the scope of logistics course in your business:
- Smooth Processing
Logistics ensure the economical process of the product as well as manufacturing, storage, transportation, etc. Logistics assists you to keep this flow throughout the process. So every department can know about their duties and track of their business. Through this, you’ll gain a competitive advantage within the industry.
Your business might need a correct storage facility to stockpile raw materials and finished merchandise. The information about stock should be filed and it is mandatory at the time of stock retrieval. When the client places an order for a product, you can deliver the product only after receiving payment. So, you have got to think about your supervisor until you offer the product. Storage and retrieval of the stock are easily conducted with Logistics.
- Customer retention
Sensible supply management can alter a business to retain customers and thereby increase sales. If a business is in a position to perform an impeccable transport of its product to vendors, distributors, and customers at large, the business is assured to learn from it. A well-followed supply strategy makes positive that your product is available for trade once a customer seeks for it.
Objectives of Logistics:
- Cost Reduction and Profit Maximization
Logistics management results in cost reduction and profit maximization, primarily due to:
- Improved material handling
- Safe, speedy and economical transportation
- Optimum number and convenient location of warehouses etc.
- Efficient Flow of Manufacturing Operations
Inbound logistics helps in the efficient flow of manufacturing operations, due to on-time delivery of materials, proper utilization of materials and semi-finished goods in the production process and so on.
- Competitive Edge
Logistics provide, maintain and sharpen the competitive edge of an enterprise by:
- Increasing sales through providing better customer service
- Arranging for rapid and reliable delivery
- Avoiding errors in order processing; and so on.
- Effective Communication System
An efficient information system is a must for sound logistics management. As such, logistics management helps in developing effective communication system for continuous interface with suppliers and rapid response to customer enquiries.
- Sound Inventory Management
Sound inventory management is a by-product of logistics management. A major headache of production management, financial management etc. is how to ensure sound inventory management; which headache is cured by logistics management.