There is always a need to have a laid down plan and procedure for every system in an organization to operate. Directors and managers come together and determine how the physical materials and the information system of the organization will be done in order to enhance productivity and achieve the organization’s goal. Logistics may be simply defined as the organization and execution of the organization’s operation. The effectiveness of an organizations logistics goes a long way in determining the success the organization will achieve.
The process of putting together this logistics and managing them is not usually an easy task as it require some steps. Steps of making an efficient logistics includes:
Planning: this is the first step in creating an efficient logistics. The process of planning helps the organization to bring together all the needed resources and predict what the market will hold in the nearest future. It is said that the man with vision rules, with proper planning, the organization will always have a competitive advantage over her competitors.
Management: the management of the said rules, procedures and the human resource is very important to create an efficient logistics because if the plan is excellent but it is not managed properly, the whole aim of the planning will be defeated. To ensure quality management of logistics, the organization selects leaders for each section.
Execution: the logistics efficiency of an organization is seen in its execution. The execution is that point where you need nothing to go run because if it does, it have ruined all the other processes. During the execution process, all facet needs to be double checked and capable hands assigned to specialized functions.
The importance of logistics efficiency in industrial manufacturing
- The need for efficient logistics cannot be over emphasized. Its importance includes:
- -Eliminating processes and practices that induce extra cost.
- -Ensuring smooth transaction of business
- -Enhancing competitive advantage over competitors
- -Promoting internal functioning of the organization
When the logistics are put in place and managed effectively in order to gain and maintain competitive advantage over competitors, then the logistics is efficient. Every manufacturing industry and company is looking for a competitive advantage over their competitors because that is what defines a company’s success. Nike for example has made a run-away success over Adidas because they saw a competitive advantage in adding some technology to sportswear and made an efficient logistics by being flexible to the dynamic market of sports wares. However, it is advised that before an industry modifies an existing logistics there is a need to analyse the properties of the current logistics, and compare it with that of their competitors.