Just by reading the topic of this blog, some of you might assume that it is boring but hold on...Logistics is definitely NOT boring. Have you ever wondered if the logistics chain was not there then how would you receive all sorts of products at your doorstep? Logistics is everywhere, we have e-commerce logistics, hyperlocal logistics, logistics in agriculture, seafood logistics, petroleum logistics, etc. Logistics is vital to the economy, it is one of the fastest-growing career fields in the world.

Logistics in layman’s terms

Let’s understand logistics with an example. Consider you placed an order online for any item, after 3-4 days or depending upon the company's delivery time you receive the order. But have you ever wondered what happens behind the scenes to fulfill your order?

The chain given below describes the movement of your product i.e from the supplier to the end consumer.

Inventory management → warehousing → packaging → labeling → billing → Shipping → payment collection → return → exchange

By looking at the chain, we can say that managing logistics is indeed a complex operation. Logistics is a process of managing how the resources are obtained, stored, and transported to the final destination.

Is Logistics and Supply chain management (SCM) the same thing?

Some people say that there is no difference between the two terms. To clear this doubt, logistics is all about the 7 R's i.e Getting the right product, in the right quantity, in the right condition, at the right place, at the right time, delivering it to the right customer, at the right price. Whereas supply chain management is the planning and management of 4 activities :

• Procurement - arranging raw materials for production
• Sourcing - selecting the right suppliers of the raw materials that we need for production
• Conversion - converting raw materials into finished goods
• Logistics management - management of inventory + warehousing + packaging +labelling + billing + shipping + payment + return + exchange

By understanding SCM and logistics, we can conclude that SCM is a broader domain and logistics is a part of this domain. Another key difference is that SCM focuses on competitive advantage whereas logistics focuses on customer satisfaction.

With logistics being a complex chain, it often faces certain challenges. Let’s understand one of the major challenges in logistics management.

How is the lack of end-to-end visibility affecting the chain?

Visibility refers to the ability to track and trace different products in transit, giving a clear view of the inventory and activity. Challenges that arise due to lack of end-to-end visibility include poor planning and execution, inefficiencies in organizing, processing, and managing data, inability to predict and prepare for risks, and inconsistencies in the flow of data between stakeholders. Planning delivery routes and assigning tasks to delivery executives without having visibility of performance history results in financial losses.

Benefits of attaining end-to-end visibility

• Reduced risks - if we know where potential disruptions can arise, the chances of them causing problems can be reduced.
• Increased efficiency - when it comes to making data-backed decisions, you don’t have to think twice or wait for your next move. This increases operations efficiency and speed.
• Fulfilling customer demands - Predicting future demands based on historical data becomes easy, thus meeting the customer demands.

To conclude, logistics is an important element of the supply chain that contributes to reducing costs and improving efficiency. At the same time, it provides customer satisfaction.