Competitive advantages of an integrated logistics management

Barcelona, June 1, 2021.- The company JCTrans has carried out an analysis on the strategic objectives of integrated logistics management. A different vision of such a complex situation.

Integrated logistics management is an important part of the core of supply chain management. The focus of integrated logistics management is to effectively control and optimize the three logistics factors of facility location, inventory and transportation. Integrated logistics management transforms static facility locations, inventory, and dynamic transportation into a logistics system with the greatest value-added capabilities. 

The strategic goals of enterprise integrated logistics management can be summarized into the following three aspects:

1. Shorten the logistics pipeline

Shortening the logistics pipeline means looking for ways to reduce turnaround time and inventory. Inventory includes intermediate inventory and final inventory. Intermediate inventory refers to the inventory of raw materials, parts, work-in-progress, and finished products. It serves as a buffer when demand fluctuates in the supply chain.

Using the advanced integrated logistics management information system, customers can notify suppliers more quickly and accurately, and even all suppliers can use integrated logistics management software to understand customer demand plans and adjust production plans accordingly. This will help suppliers improve the accuracy of demand forecasts, reduce inventory, and shorten the “stocking time gap.”

2. Increase pipeline transparency

The increase in the transparency of logistics pipelines has made the logistics information in the supply chain network more open so that each node can obtain information about the inventory location and inventory quantity at any time. Transparent logistics pipelines have changed the inaccuracy of traditional logistics information and eliminated bottlenecks and excessive inventory problems in the supply chain network.

3. Systematization of logistics operations

In the traditional logistics model, logistics is only a general functional activity of the enterprise, scattered in different functional departments, while the information in integrated logistics management is scattered in different functional departments of the supply chain.

The integrated supply chain management idea requires that the logistics activities from the supplier to the final consumer be managed as a whole, and each activity is grasped at the overall and overall level. The integrated supply chain management thought minimizes the inventory level of the entire supply chain and realizes the overall logistics optimization of the supply chain.

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