The Importance of Logistics in Project Management......

[Ryan Heatherson]

Hi Every Body,
How is life? According to several experts, logistics is the operational word for businesses in the future. But, what exactly is logistics and how does it affect project management?

According to many, logistics is just the movement of goods. But this is a narrow view. The physical handling of goods is logistics. In general, this would include transportation of goods via sea, air or rail.

But there is more to it than this. In a much wider sense, logistics involves the physical layout, plant location, purchasing and even waste disposal. Effective logistics involves proper management and planning, accurate forecasting, inventory management, transporting, supervising of loading and unloading, customs clearing, cargo insurance, stowage supervision and warehousing. In short, logistics is the delivery of items accurately, efficiently and in a time bound manner to the place and person it is meant to be sent.

Since many projects these days are dependent on the timely delivery of inventory, proper logistics support is an important necessity. In any case, companies shell out approximately 10-35% of their total revenue on logistics. That is in itself evidence of the importance of logistics support in project management. Globalization, free market and high competition has made it imperative that companies deliver and receive with clockwork precision and on time.

Any project is a time bound assignment. Delays caused by faulty logistics cause not just loss of revenue but also lead to the loss of reputation and customer satisfaction. These are priceless assets, which are almost impossible to recoup once lost. That is why experts say that proper planning is the key to great logistics.

For reputed companies, project logistics involves the management and handling of large shipments on a global basis. These shipments would involve heavy equipment, oversized cargo and cargo that is completely time sensitive or requires a very high degree of security. To offer complete project logistics, companies often undertake feasibility studies and come up with customized, tailored solutions. This is the mark of a great logistics expert.

Some projects involve tricky requirements. It is up to the logistics team to orchestrate even the most complicated supply chains. To be viable and successful, a good logistics partner must bring with them several qualities:

- They must be competitive in their price while offering turnkey solutions that the project requires

- Route optimization must be a priority

- Complete planning and end to end solutions must be provided seamlessly

- Must provide single points of contact for all services through strategically positioned hubs.

Best Regards....

[khushi]

hello


A lot of companies all around the world have put up logistics measures. These companies have found that these indicators can actually ensure faster and timelier service. Why is it so important to companies? These procedures are quite important to any company, particularly in the retail business. The manufacture and the sale of goods all depend on timely execution of all aspects of the whole process. If one part bogs down, then the whole sale process fails as well. These procedures that companies put up in their respective logistic department are there to ensure a smooth transition of operations.

What is logistics anyway? Logistics simple pertains to the variety of procedures involved in a supply chain. The supply chain can either be private or public. For instance, in any military body, its logistical support usually equates to success or failure. Now, with any military body, failure is not an option. Just like the military, businesses can either benefit from a good supply chain or this can lead to its demise. That is why companies have installed these procedures and policies to help them achieve success.

These measures are in the form of key performance indicators. These indicators grade certain aspects of the whole supply chain. It is usually just a selection between pass and fail, absolutely nothing in between. The failing grades will help managers locate which part of the whole chain needs further work and improvement. Usually, the aspects involved include the following: warehouse site selection, interplant movements, order processing, inventory, forecasting, packaging, and a whole lot more. Each of these aspects will be graded differently. However, time will always be an unchanging factor.

You have to realize that the support logistics of one line of business will be entirely different from other lines of businesses. No logistical department is quite the same. The fact holds true even for businesses of the same nature. The fact is that the indicators that you will put in place must be tailor-made to fit your logistical department. Is it difficult to create these policies and measures?

In reality, they are not difficult to make. They are just quite tedious. Just imagine creating metrics for the whole supply chain. However, there are companies that make them for you for a fee. There are even some readymade procedures that can be bought off the internet. All you need to do is look for the right one for your institution or business.

The point of all these policies and metrics is to satisfy the end user. This usually means the customer. If you can deliver a product on a timely and orderly manner, then that means your support supply chain is working perfectly. It will also give an added bonus to the prestige of your company since your customers are satisfied with the deliveries. These ending scenarios are also the objectives of many non-business related organizations, like the military. Logistics measures can really help ensure the success and productivity of your organization as a whole.

Thanks

[safetyforreal]

Okay, it sounds allright to me !

[alcglobalpartners]

I agree that there really is an art to successful logistics and supply chain management. After helping untangle supply chain issues for several startups that grew too big for their disorganized system, I can say that it is essential to put some thought into how scalable each element of your chain is.

For example, I am currently working with a ballet shoe company to help source their leathers in China. When they first started the company they simply went to the leather markets and bought enough leather of whatever the store had on-hand to make 200-300 pairs of shoes. The problem was that after all these shoes had sold out, the same color leather was no longer avaliable in that store and they were left without a way to replace it. When I came into the picture, one of the first things I did was to find actual leather factories to produce each color and keep it on file for every re-order.
In short, always planning for the step will keep your company from having growing pains and from being a victim of your own success!

[garryburks]

It is true that management of logistics involves a lot of planning, forecasting, supervision, clearance, and warehousing. Project management is a crucial part of any logistics. Ours is a consulting firm working in the cargo. We've tried doing this manually..... and it has taken us ages. Its Microsoft Project Professional that we use these days. Do you know of any reputed shipment company who're using web techniques for their management tasks.

[cellphoneguy]

Good advice. I know for my start-up, the cost-benefit is not there to invest thousands of $$'s based on our predicted low-volume. However we are expecting volume to grow over the first 12-24 months and have already started the selection process on some small-business inventory tracking/logistics systems/software that are compatible with Quickbooks. Fishbowl is one of them!

[hodgeemory]

Logistics is the management of the flow of goods between the point of origin and .... availability, maintainability and other requirements as defined for the project.

[john hipster]

Effective logistics management requires that the actual status of goods and services.