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If your business is operating in logistics and shipping, knowing that you are meeting and exceeding operational expectations is vital. When you consistently meet and exceed your logistics goals, you can enjoy the benefits of increased client trust, ongoing business, and scalability.
To achieve their goals and build revenue through logistics, internal logistics management metrics must be set within a company. Without these metrics, logistics have no standard by which to judge their effectiveness. Logistics management can help give both guidance for how your logistics should function, as well as the tools necessary to get there.
Logistics management should be developed to meet several keystone business objectives, including:
- Increased Logistics Efficiency
- Rapid Response to Changing Environments
- Reduction in Adverse Events
- A Consistent Minimum Inventory
- Overall Reduction in Transportation & Shipping Costs
- Enterprise-Wide Quality Improvement
With these goals in mind, you can best develop a logistics management system that will increase your overall effectiveness and efficiency - saving you time, money, and clients.
What is the Difference Between Logistics and Supply Chain?
One confusion that often arises with logistics management is the term “logistics” with “supply chain.” While both can often refer to similar aspects in the transportation and shipping industry, there are important differences between the two and the goal of each:
- Supply Chain Management: How businesses use and optimize their processes within and across companies. The ultimate goal of a supply chain is to build a company’s competitive advantage.
- Logistics Management: The management of the storage, flow, and delivery of goods in and out of an organization. The goal of logistics is to meet and exceed customer expectations.
While the differences are important, it’s key that you know that logistics and supply chain management exist codependently. When both are refined and optimized, your company can enjoy the benefits of smooth operations and effectiveness.
What are the Types of Logistics Management Systems?
To help companies meet the needs of logistics management, several types of systems have emerged to help handle all aspects and functions of the process. Each uniquely handles specific types of logistics, depending on the type of logistics occurring:
- Inbound Logistics: transportation, storage, and receiving the incoming resources (such as raw material or other goods) that you require to manufacture a product
- Outbound Logistics: the process of delivering the product to the customer on the committed time.
- Reverse Logistics: the process of transporting product from the end customer to the seller
- Third-Party Logistics (3PL): the transportation of products from one end to another end and nothing else
How SAP Helps You Connect the Dots with SAP Logistics Management
Logistics management systems can be incredibly beneficial in helping companies handle all aspects of their logistics management. One of the most popular logistics management systems is SAP, an all-inclusive logistics software that centralized logistics data management into one system. This can help a company bring together all aspects of logistics management into one system that all departments can access in real-time SAP Logistics Management.
With constantly updated information across all logistic management systems and functions, SAP has become a leading innovator in how transportation managers optimize their processes.
What Are the Functions of SAP Logistics Management?
SAP logistics management is often used to refer to the umbrella of management systems that guide supply goods and services through a company. In reality, various functions within the SAP logistics management space that boost effectiveness and efficiency across the enterprise. Here is a short breakdown of the most critical functions that an SAP logistics management system offers:
- Materials Management (MM): The management of all material goods and inventory purchased and moved within the company
- Sales and Distribution (SD): All processes regarding the sale and distribution of the materials, including ordering, delivery information, and shipping costs
- Quality Management (QM): All functions related to ensuring that materials are of top-quality and moved properly
- Plant Maintenance (PM): Any functions that handle the tracking of various equipment that is used within a production process
- Production Planning (PP): The overall production functions that focus on production scheduling, material needs, and finished product tracking
- Customer Service (CS): A system for tracking all customer service needs, such as warranties, repairs, and replacement
- Warehouse Management (WM): A function for handling all inventory within warehouses to optimize storage
With so many data points and systems to track, a high-functioning SAP logistics management system is essential. With the right system, you can automate the numerous data points and see overarching trends within each. This can help you better plan and prepare for the present and the future.
Optimize SAP with ShipERP Core
Want to discover how SAP can help you fulfill your unique SAP logistics management requirements? ShipERP has developed a Core logistics software system that seamlessly integrates into your SAP system, providing real-time multi-carrier and multi-modal shipping connection for small parcel and Less-Than-Truckload (LTL) carriers.
ShipERP Core provides a single, fully configurable platform that utilizes SAP’s native programming language - meaning that you can integrate ShipERP core with any SAP systems seamlessly without the hassle of middleware.
Want to learn more? Discover how ShipERP can boost your SAP logistics management, and sign up for a free demo of the ShipERP Core today! Our team of skilled logistics management experts can help you learn more about how SAP logistics management software can take your logistics to the next level.
