Global Issues & Challenges in Logistics Management

PRESENTED BY

ABHISHEK ANAND E.V

What is Logistics Management ?

Logistics Management is the process of planning, execution, and controlling of the movement of goods or people and related supporting activities all within a system designed to achieve specific objective.

It is also concerned with managing and controlling the flow or supply of goods, information, personal utilities and other resources from one location to destination to meet the demands of the customers or the requirement of one department or the section of the organization.

Benefits of Logistics Management

1. It helps in making the right quantity of right quality products at the right place and at the right time in right condition.

2. It aims in customer satisfaction by reducing the operation cost and passing on the benefits to the customers.

3. It helps in penetrating new market by increasing market share and increasing profits.

4. It helps in globalization and internationalization.

Challenges to the Logistics and Supply Chain

The challenges to the Logistics and Supply Chain operations in concerned with “THE FIVE V’s”

1) VALUE

2) VELOCITY

3) VARIABILITY

4) VISIBILITY

5) VULNERABILITY

Top 10 logistics challenges for 2012 by Clifford F. Lynch

The economy may be on the mend, but the logistics/supply chain community will still face challenges throughout the year. Here's what to watch for.

1) The Economy

2) The Price of Fuel.

3) Rising Truck Rates

4) Capacity

5) Infrastructure

6) Ocean shipping

7) Security

8) The green movement

9) Increased truck weight limits

10) The election

Conclusion

In order to be an effective and an efficient Logistics manager, he/she must keep in mind the challenges and issues to the Logistics and Supply Chain operations.

He/she must have the ability to balance the problem in order to have clear perspective of consumers, firms, government and the public.

While the principles of supply chain logistics still apply in a global environment, the challenges are significantly magnified and the risks are increased. As many firms attempt to take advantage of global sourcing and marketing, there is a growing need for awareness regarding the challenges and infrastructure changes.

Finally…..

While the principles of supply chain logistics still apply in a global environment, the challenges are significantly magnified and the risks are increased. As many firms attempt to take advantage of global sourcing and marketing, there is a growing need for awareness regarding the challenges and infrastructure changes.