Logistics management and the supply chain
The integrated planning, organization, management, processing and control of the entire flow of materials and goods and the corresponding informationis referred to as logistics management. This is not a tangible work step, but rather countless process chains within a supply chain (value chain) – also known as supply chain management.
Logistics has become a highly complex field, and not just due to globalization and the possibilities of digitalization (see also the history of logistics). It encompasses the organization, control, provision and optimization of all processes relating to the flow of goods, information, energy, money and people along the value as well as the supply chain and is therefore not a separate economic category, but an indispensable factor for economic success. Logistics management is constantly faced with new (acute, medium and long-term) challenges in order to constantly find optimal solutions.
Logistics management and its sub-disciplines
An initial rough classification is made by distinguishing intralogistics, which describes the internal flow of materials, from transportation and goods traffic. Further classifications relate to specific specialist areas, from which the following sub-disciplines can be derived:
- Distribution logistics (see also Vogel’s approximation method)
- production logistics
- Procurement logistics
- Disposal logistics (see reverse logistics)
Logistics management as an interdisciplinary field
Logisticians must therefore be as familiar with production processes as they are with the goods and supply chains themselves. They form the interface between internal and external flows of goods and information. Interdisciplinary knowledge is required for the challenging task of ensuring that the right goods and information (intralogistics) are available in the right place at the right time in the right quality and quantity, including a high level of efficiency. These different and complementary subject areas include logistics areas such as warehouse and inventory management, supply chain management, production logistics, value-added processes, distribution logistics and procurement and purchasing controlling. In addition, business management fields also play an important role, such as micro and macroeconomics, accounting, project and quality management.
In times of digitalization, the technical and mathematical aspects are becoming increasingly important. The control of information flows, which go hand in hand with the flow of materials, is becoming more and more relevant and will continue to increase due to the Internet of Things, or IoT for short. This is why the relevant expertise in the following areas is just as important: information technology, material flow technology, control and measurement technology, statistics and business mathematics as well as technology management for logistics processes. As in all areas of management, strategy and organization are also central fields of action in logistics management.
Editor’s note: Accordingly, degree courses in logistics/logistics management can have very different focuses; either strongly interdisciplinary, very business-related or very technical.
Summary – Logistics Management
Logistics management encompasses numerous business and economic areas and generally has interdisciplinary content. Overall, the aim is to plan, organize, control, process and monitor the flow of materials and goods in all relevant aspects at all times. The associated information flows are therefore becoming increasingly important.
Further information on this topic can be found under ‘Optimization by means of process chain management‘ and under Perfect Order Fulfillment.
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