Coordinative function of logistics

Coordinative function of logistics
See also
Material stream Distribution logistics subsystem Supply logistics subsystem Production logistics subsystem Procurement logistics Added value (logistics) Principles of Supply Chain Management Distribution cost Optimization of transport

An important condition for the integration of the company's activities in pursuit of meeting the needs of customers is the coordination of these actions. Coordination means combining of only those elements (people performing specific activities, and other resources with specific functions) that are necessary to ensure success, These elements contribute to the success of the whole (assembly, or any part) - and thus managers should use them in the right quality, amount and at the right time.

Coordination of activities carried out under the various functions of the company to provide customers products that meet their needs depends therefore on obtaining timely and appropriate information to enable decision related to the commitment of necessary resources. The fulfillment of such a condition is substantially simplified by the logistics information system formed respectively.

Coordination tasks in logistics

Coordinative tasks within logistics involve coordinating and managing the various activities and resources necessary to ensure the efficient and effective flow of goods and services from suppliers to customers. These tasks include:

• Planning and forecasting: Determining the appropriate level of inventory, production, and delivery schedules based on customer demand and supplier capabilities.
• Scheduling and dispatching: Coordinating the movement of goods and services from suppliers to customers, including scheduling transportation and assigning carriers.
• Inventory management: Ensuring that the right level of inventory is maintained to meet customer demand, including monitoring inventory levels, reordering products, and managing stockouts.
• Distribution: Coordinating the movement of goods and services from suppliers to customers, including scheduling transportation and assigning carriers.
• Supply chain management: Coordinating and managing the flow of goods and services between suppliers, manufacturers, distributors, and customers.
• Collaboration and communication: Maintaining effective communication and collaboration with suppliers, customers, and other logistics partners to ensure timely and efficient delivery of goods and services.
• Logistics control and monitoring: Monitoring and controlling logistics activities, such as tracking deliveries, managing transportation costs, and ensuring compliance with regulations and policies.

Information as a coordinator

Information supporting the coordination should be used primarily on such areas of responsibility as planning of needs of the individual units involved in the supply, production, distribution and scheduling. Taking into account the types of information at the operational level, system should provide data on settlement of deliveries, inventory allocation, and shipping of final and supplementary deliveries. Information adds significant value to whole logistic process of the company and between companies.

See also:

• Sources of information in logistics

Summary

In summary, coordination of a company's activities is crucial for meeting customer needs and requires timely and appropriate information to make informed decisions about allocating resources. An effective logistics information system can simplify this process by providing data on deliveries, inventory allocation, and shipping, which can greatly enhance the overall logistic process both within the company and between companies.

Examples of Coordinative function of logistics

1. Order Fulfillment: This is the process of tracking, packing and shipping goods ordered by customers. It requires coordination between departments such as receiving, inventory, sales, and customer service.
2. Inventory Management: This involves tracking the movement of goods and materials in the warehouse and ensuring that the right amount of stock is always available. It requires coordination between departments such as purchasing, shipping, and quality control.
3. Transportation Management: This involves planning and coordinating the movement of goods from one place to another. It requires coordination between departments such as dispatch and customer service.
4. Warehouse Management: This involves managing the storage of goods and materials in a warehouse. It requires coordination between departments such as inventory, receiving, and shipping.

Advantages of Coordinative function of logistics

The coordination of logistics activities is an important factor in achieving success in meeting customer needs. The following are the advantages of coordinating logistics activities:

• Improved efficiency - Coordination facilitates the efficient use of resources, helping to ensure that only the necessary resources are used, in the right quality, amount and at the right time. This reduces waste and increases the efficiency of the overall process.
• Improved customer satisfaction - Coordinating logistics activities helps to ensure that customer needs are met in a timely and satisfactory manner. This increases customer loyalty and satisfaction and can lead to repeat business.
• Increased profitability - Coordinating logistics activities helps to reduce costs, which can lead to increased profitability. By reducing unnecessary expenses, companies can maximize their profits.
• Reduced risk - Coordination helps to reduce risk by ensuring that all resources and processes are used effectively and efficiently. By avoiding unnecessary risks, companies can reduce the chance of costly mistakes that may have a negative impact on their operations.

Limitations of Coordinative function of logistics

The coordinative function of logistics has several limitations, including:

• Limited resources: Coordination relies on having the right resources at the right time, but resources can be limited, meaning that coordination can be difficult to achieve.
• Unpredictable demand: Demand can be unpredictable, making it difficult to coordinate the activities of the company to meet customer needs.
• Lack of communication: Without effective communication, coordination can be limited and errors can occur.
• Poor planning: Poor planning can lead to delays in coordination and disruption to the supply chain.
• Complexity: Complex supply chains can be difficult to coordinate, as there are many elements that must be considered.

Other approaches related to Coordinative function of logistics

The following are other approaches related to the Coordinative function of logistics:

• Strategic Management: Strategic management involves aligning the organization's goals and objectives with its resources to achieve success. It involves the creation of a plan that provides the framework for decision making and resource allocation.
• Supply Chain Management: Supply chain management is the management of the flow of goods and services from suppliers to customers. The focus is on maximizing the efficiency and effectiveness of the flow of goods and services in order to reduce costs and increase customer satisfaction.
• Logistics Network Design: Logistics network design is the process of designing a logistics network that will efficiently and effectively meet the needs of the customer. This process involves determining the most efficient routes, selecting the most cost-effective transportation methods, and ensuring the appropriate locations are utilized.
• Warehouse and Inventory Management: Warehouse and inventory management is the process of managing the storage, retrieval, and distribution of inventory. This includes optimizing the inventory levels, managing the storage of goods, and ensuring the timely delivery of goods to customers.
• Logistics Performance Measurement: Logistics performance measurement is the process of measuring the performance of the logistics activities. This includes measuring the effectiveness and efficiency of the logistics operations.

In conclusion, coordinative function of logistics includes strategic management, supply chain management, logistics network design, warehouse and inventory management, and logistics performance measurement. By using these approaches, businesses can ensure that their logistics operations are optimized for maximum efficiency and effectiveness.

References

• Yi, W., & Özdamar, L. (2007). A dynamic logistics coordination model for evacuation and support in disaster response activities. European Journal of Operational Research, 179(3), 1177-1193.