Posted by According to many experts, logistics is the operating word for business in the future. But, what exactly are logistics and how do they affect project management?
According to many, logistics is just the movement of goods. But this is a narrow view. The physical handling of the goods is the logistics. Generally, this may involve the transportation of goods by sea, air or rail.
But there is more to it than this. In a broader sense, logistics includes physical planning, plant location, procurement, and even waste disposal. Effective logistics includes proper management and planning, accurate forecasting, inventory management, transportation, loading and unloading supervision, customs clearance, cargo insurance, stowage and warehousing supervision. In short, logistics is the delivery of items accurately, efficiently and within a specified time frame to the place and person to whom they are supposed to be sent.
Since many projects these days depend on just-in-time inventory delivery, proper logistical support is an important necessity. In any case, companies allocate approximately 10-35% of their total revenue on logistics. This in itself is evidence of the importance of logistical support in project management. Globalization, free market and high competition have made it necessary for businesses to deliver and receive with exacting accuracy on time.
Any project is a time bound task. Delays caused by faulty logistics not only result in lost revenue, but also loss of reputation and customer satisfaction. These are invaluable assets, and it is almost impossible to replace them once they are lost. This is why experts say proper planning is key to great logistics.
for reputable companies, Project logistics It involves managing and handling large shipments on a global basis. These shipments will include heavy equipment, bulky cargo, and cargo that is either completely time sensitive or requires a very high degree of security. To offer a complete project logistics, companies often conduct feasibility studies and come up with tailored and tailored solutions. This is the mark of a great logistics expert.
Some projects have challenging requirements. It is up to the logistics team to organize even the most complex supply chains. To be a successful and viable logistics partner, he must bring with him several qualities:
– It must be competitive in its prices while providing integrated solutions required by the project
– Optimization of the track should be a priority
Complete planning and comprehensive solutions should be delivered smoothly
Individual points of contact for all services must be provided through strategically located hubs.