How Logistics Management Is Key to Driving Business Forward

Technological innovation and advancements have undoubtedly optimised logistics management. From new innovations to changing consumer behaviour, the landscape is ever evolving. Speaking from an Indian context, the freight and logistics sector is on the brink of significant expansion. Recently a report presented at LogiMAT India 2024 suggested a substantial increase in market size, reaching USD 317.26 billion by 2024, and an expected compound annual growth rate (CAGR) of 8.83%. The surge is anticipated to propel the market to USD 484.43 billion by 2029.

Over the coming years, the logistics industry will undergo extensive changes to align itself with the dynamic needs of business. Logistics trends are inextricably tied to social and corporate developments and companies are now seeking to automate as much as possible to make their processes more sustainable.

Strategic Importance of Logistics Management in Supply Chains

Logistics management is built on collaboration, coordination, and cooperation. between manufacturers, suppliers, distributors, and retailers, and more. As one of the key functions of a company, the most important targets for logistics can be divided into cost and performance based. Logistics management is touted as one of the most pivotal parts of the supply chain. It takes into consideration the execution, effective forward and reverse flow and storage of goods, services, and associated information between the origin point and the consumption point to meet customer and legal requirements.

Efficient logistics management plays a critical role in the success of businesses operating in today’s fast-paced and competitive business environment. In contrast, inefficient management of logistics can significantly impact a business’s profitability. It may result in delayed deliveries, higher transportation costs, and decreased customer satisfaction, which can lead to lost sales and a damaged reputation.

Another key advantage of efficient logistics management is its ability to help businesses reduce transportation costs. Transportation expenses can be a major financial burden for businesses, particularly those heavily reliant on product shipping. Efficient logistics management enables businesses to optimize their transportation routes and select the most cost-effective carriers, ultimately leading to cost savings and increased profitability.

Here are some of the benefits of seamless logistics management

• Enhanced customer relationships and service.
• Improved delivery systems for products and services.
• Prompt demand services
• Increased corporate operations and productivity.
• Reduced transportation and warehouse costs.
• Controlled indirect and direct costs.

Digitalisation – Data-Driven Logistics

In today’s logistics market, a data-centric approach is not only preferable but necessary for success. Seamless collaboration among stakeholders is critical to company continuity. Standardising data-gathering methods and formats is critical for improving information transmission within the supply chain network, maximising efficiency and comprehension.

The combination of human expertise and AI skills, known as Augmented Intelligence, is transforming logistics planning. By harnessing AI-powered forecasting technologies, logistics operations can leverage use diverse data sources to accurately predict demand, optimise transportation requirements, and increase capacity utilisation. Additionally, the advent of Smart logistics is transforming the business landscape by utilising next-generation technologies to improve efficiency and decision-making processes. Data analytics, real-time tracking, and time-definite offers all play important roles in achieving great operational performance. This cohesive integration of data-driven technology enhances agility, cost-effectiveness, and facilitates informed decision-making across logistics operations.

In this context, the integration of technology has transformed workforce dynamics in the logistics sector. With the acceleration of automation, the role of human workers has evolved to higher-level jobs including supervising and managing automated systems, problem-solving, and customer support.

Advancements in technology and the growth of e-commerce are forcing businesses to invest in more sophisticated logistics and supply chain management systems, which has led to an increase in the demand for trained logistics managers. The UPES School of Business offers a BBA and MBA in Logistics Supply Chain Management. The BBA course is specially formulated to offer a thorough understanding of the complexities involved in effectively managing logistics and supply chain activities across a wide range of businesses. The programme combines business administration fundamentals with a specialised understanding of logistics, transportation, inventory control, and supply chain optimisation.

MBA Logistics Management by UPES School is designed to equip students with the skills and knowledge necessary for mid and senior management roles in a variety of industries, both within India and on a global scale. The Logistics Planning/Supply Chain concentration is a distinguishing aspect of the MBA in Logistics & Supply Chain Management programme, providing students with in-depth knowledge and practical abilities in areas like as demand planning and forecasting. The programme covers a variety of demand forecasting methods, both qualitative and quantitative, as well as demand planning tactics and procedures.

To learn more about our courses and offerings, please visit https://www.upes.ac.in/school-of-business.

The writer is Dr. Saurabh Tiwari, Senior Associate Professor, Energy & Transportation, UPES School of Business