logistics service management is outsourcing logistics operations to a third party. Companies, or clients, utilize these third parties, known as logistics service providers (LSPs), for logistics services. An LSP can manage logistics services for one or several clients at a time.
Logistics management activities generally involve transportation management, both inbound and outbound, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, demand/supply planning, and managing third-party logistics providers. In contrast, today’s logistics management software offers solutions for on-demand deliveries and scheduled services, using an integrated resource pool. Effective logistics management allows the adoption of robust strategies, which helps deliver services that satisfy customers’ needs and increase sales volumes.
How does a good logistic management work?
Good logistics customer service management depends on superior communications as well as prompt, uninjured deliveries. Excellent logistics and transportation services require an interplay of efficient use of resources, transportation management, technology, environmental sustainability, organizational structures, and the coordination of physical flows as well as information. Increasingly, companies are turning to third-party logistics service providers and supply chain management companies to address logistics and supply chain challenges, helping them improve customer satisfaction and achieve competitive advantage.
Similar to logistics management, businesses can either manage their supply chains using in-house processes or partner with an external firm. Among retailers and wholesalers, logistics considerations go beyond managing inventories and transporting goods and involve one of the more crucial factors for a company’s success: its location relative to markets or sources of supply. Supply Chain Services Management – commonly called SCSM or Supply Chain As A Service (SCAAS) – is simply the way that supply chain teams handle processes occurring outside the system of transactions and logistics.