Supply chain management, in turn, is a more complex category. Supply chain management includes logistics to ensure end-to-end optimization, i.e. not only within the enterprise, but also when working with counterparties. The goal of efficient logistics management is to achieve the maximum competitiveness and profitability of the company, as well as the entire network structure of the supply chain, including end users. In this regard, the integration and introduction of innovations in supply chain processes and logistics processes should aim to increase the overall productivity of all participants.
Tasks of logistics
Minimize operating costs. The main role of logistics in supply chain management is to increase the total value of each delivery, which is determined by customer satisfaction. This means that labor reduction and optimization must be linked to maintaining a certain level of quality of customer service. This problem is solved by reducing the total labor resources (mainly by eliminating unnecessary chains) and introducing automated solutions. Integrate the traffic flow. Transportation costs are one of the largest cost categories in logistics management. In general, transportation costs increase with distance, batch size and exposure to product damage. On the other hand, as the batches get larger with long-term use, the transport costs per unit weight will decrease. Therefore, maximizing the integration of the transport volume helps to reduce transport costs. Can be expanded by merging small batches into one large batch for extended use. Reduce actual losses and potential risks. Forwarding and shipping is important to understand the process of logistics.As you know, it is profitable if the value created by a company is greater than the costs associated with conducting the activity. To gain a competitive advantage, companies must perform these activities at a lower cost, or perform these activities in a way that leads to differentiation and price increases. To effectively solve this problem, the first thing to do is to reduce the loss caused by the return.