The importance of logistics management in your organization

By Mauro Libi.- Logistic management it means any action taken by an organization with the purpose of capturing, accessing or using the resources required to carry out the work of the company. Also, business management it corporate strategies to optimize and to make the best use of resources with productivity, profitability and performance as a goal.

The logistics of any company need to respond to strategic planning at increasing the competitiveness of the organization. Managing resources in the right way, results in efficiency and effectiveness eliminating obstacles in the institution's production. Likewise, logistics management has to aim at cost reduction to be able to have a better use of resources. In the same way, the adequate logistics leads to the quality levels improvement of the product that the organization elaborates. Due to the correct use of resources, processes improvement and obstacles’ elimination work should be focused on the product and / or service optimization that has been achieved and its quality increased.

Logistic management, as we have just mentioned, must ensure the processes’ efficiency, the processes’ improvement, the end of tasks’ duplicity, bureaucracy and empty production zones. To achieve an ideal logistics management in the organization, the management indicators need to be defined.

These indicators are called KIPs, they are values, quantitative or qualitative, which provide information on the success level of logistics management processes. The most used are: production KIPs, storage and inventory KIPs, purchase supply KIPs, transportation and distribution KIPs. Every particular case determines the indicators to use, which can be of several different groups.

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