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Organization’s logistical system

Organization’s Logistical System

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Organization’s Logistical System

Logistics involves the control of flow of goods and services, information, human resources from one point to the other. It also encompasses planning and managing transportation, material handling, packaging and inventory of the products. There is no organization involved with manufacturing or marketing that lacks this department in their organizational structure. This is because no activity involving marketing or manufacturing will succeed in the absence of a well running logistical department. The logistical department tasked with the responsibility of making sure the process logistics is maintained in line with the set objectives of the organization. Therefore, an organization can explore various ways discuss here to improve their logistical system.

For the logistical department to raise the standard of their customer service and keep abbey the costs incurred, the organization ought to focus on the integration of all the logistical functions and the distribution function. The set organizational strategic objectives should always be the driving force behind all the organization’s logistics responsibilities. This will enable the organization achieve the predetermined standard of service at the best price. This sets out what the organization is involved in producing, and the target market for the organization’s services of products. However, most organizations lack well-structured objectives. Therefore, the very first step is to set up a forecasting function that will work closely with the marketing, sales and manufacturing, distribution and senior management departments. When the listed departments work closely, then the customers will be satisfied, and the organization will have cut down the cost. Therefore, the key to improving the logistical system of any organization is the integration of all the logistics function. Failure to do this, the organization should prepare to run a very expensive process, which in the end will not satisfy their customers.

In addition, the organization must take a keen interest in the distribution function, which includes order management, inventory management, and transportation and warehouse operations. Order management involve ensuring that the order is accepted, validated, priced, reserved, invoiced and measured. Inventory management must forecast on the network design, inventory stimulation, forecast analysis, system parameter maintenance and performance measurement. The transportation must ensure correct carrier selection, carrier scheduling, freight payment and dispatching. Finally, the warehouse operations must take into account order picking, labor scheduling, cycle accounting, order receiving and inventory control. When these functions are keenly implemented, then the business tools and processes will always function smoothly and achieve customer satisfaction with minimum cost.

Improving the logistical department will also consider the improvement in “technology while at the same time ensuring the costs are at the minimal always” (John, 2013, p.2). Regular assessment of the customer requirements will help the organization identify their outstanding logistical responsibilities and service requirements. The organization must closely monitor their competitor’s logistics organization profile to be able to stay up to date with the current trends. The organization ought also to consider having an internal regular logistics assessment to know whether they are in line with the organization’s objectives or not. This will only be effective when an outside expert is invited to conduct the assessment. Finally, the organization must put the new logistical process in operation. This might take a one-phase process or various phases. Either way, most critical is the need to immediately integrate the logistics function and closely monitor the outcome to meet the objectives and service needs at the lowest cost.

Reference

John, B. J. (2013). Quick response Solutions. Berlin: Springer-Verlag Berlin and Heidelberg GmbH & Co. KG.

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