Activities Involved in Logistics Management 

Logistics and supply chain management work side-by-side and are complementary to each other. The SCM and logistical management comprise of complicated network of processes to approach the target customers and serve their needs. Logistical management is much more than just delivering and distributing products and goods, rather it comprises various functions and operations. Today, we’ll discuss the activities involved in logistics management; various functions, and components of logistical management.

8 Activities Involved in Logistics Management 

Let’s discuss the 8 activities involved in logistics management, and they’re as follows;

Demand Forecasting

Demand planning or demand forecasting is the method of predicting the customer demand for a particular product in the future. It comprises predicting the customer’s needs and demands; it helps the company to determine the quantity of products to manufacture and how much resources they would require. However, a mistake in the demand forecasting process would cause the company operational losses and jeopardize profitability; stock out of products that customers demand.

Inventory Management

Inventory management plays a key role and it directly impacts the result of purchase and sale. It allows you to maintain a balance between the procurement of new suppliers and demand relevant to the items available in the stock. However, increasing carrying cost is significant to the company’s operations and it would directly impact the company’s profitability. It is necessary to be aware of customer demand in the increasingly competitive market; having such key insights would offer you a competitive edge.

Warehouse Management

Warehousing is relevant to the storage of products and goods in the warehouse; warehousing space, and managing necessary tools and equipment for moving goods in the warehouse. We can say that warehouse management is much more than just the storage of goods. In fact, companies carefully select the location of the warehouse and make sure of its proximity to the source of raw materials and end consumers. It would decrease the transportation distance and help the company to quickly satisfy the needs and wishes of customers.

Material Handling

The movement and flow of materials and raw supplies cause the transformation of material; it comprises stages between the production of raw materials and finished goods. We can say that material handling is the sub-category of logistical management that deals with storage, packaging, and movement of goods. However, companies employ the following tools and equipment for material handling and management;

  • Conveyor systems
  • Retrieval machines
  • Lift trucks
  • Forklift

The material flow means that it moves through the logistical network and suppliers and approaches the end consumers. The objective of material handling is to move material in such a way that would reduce cost; it would decrease wastage and lead time.

Order Processing

Order process or fulfilling customer order comprises various activities and processes in the order cycle and they’re as follows;

  • Order preparation
  • Transmission
  • Receipt
  • Order dispatch
  • Status reporting

Performing various processes quickly and speedily shows productivity, and the order processing team has to follow it. Efficient order processing would help you to avoid the need for rework. However, it is one of the key areas of logistical operations and carries a vast portion of logistical costs. Companies have to successfully perform various order processing stages in order to deliver the customer package and satisfy the needs and wishes of customers.


The right packaging of goods is highly significant in the transportation and logistical processes. It makes sure that the product would safely reach the destination of end consumers without causing any damage or loss to the product. However, it is significant to employ the right packaging boxes relevant to the product traits and characteristics and ensure product safety by using bubble wrap. It allows you to prevent the package that being too tight to avoid the loss.


Transportation comprises various activities and processes that focus on transporting goods from production to consumption. The focus of companies is to rightly and safely deliver the products in the same conditions. However, it comprises one to two-thirds of the logistical cost. Production, distribution, and marketing won’t work properly without transportation.

An expert would employ the right transportation and logistical channels to decrease the cost and amplify the competitiveness of companies. It comprises choosing the carrier based on the payment scheduling and route planning for managing transport to avoid accidents. They also have to manage the reverse logistical functions and operations to deal with the returned products and items.

Customer Service

Customer service is the area where the company focuses on satisfying the needs and wishes of customers. It focuses on efficiently performing the logistical activities and processes to deliver the products safely. You have to be in control of all the processes from the moment customers place orders and take steps to deliver their packages.

Conclusion: 8 Activities Involved in Logistics Management 

After an in-depth study of the activities involved in logistics management; we have realized that logistical management plays a key role for companies. If you are learning about the functions of logistics management; then you should keep in mind the abovementioned activities and processes.

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