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Benefits of Logistics and Supply Chain Management

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Logistics and supply chain management is an essential function and component in business today. Without this, no manufacturing, market or any kind of project execution can be successful. Logistics support is a must for all important business operations.. Most companies incur 10 to 35 percent of their gross sales on Logistic expenses. However, the exact amount depends on the business type, geography and value/weight ratio.
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  • Added: August, 30th 2011
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  • Tags: logistics and supply chain management, world best software companies, advisory services, distributed agile development, outsourced software development
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Benefits of Logistics and Supply Chain Management
Logistics and supply chain management is an essential function and component in business today.
Without this, no manufacturing, market or any kind of project execution can be successful. Logistics
support is a must for all important business operations.. Most companies incur 10 to 35 percent of their
gross sales on Logistic expenses. However, the exact amount depends on the business type, geography
and value/weight ratio.
However, the term logistics and supply chain management is a new one, but the operation is not.
Logistics has been in use since the start of business operations. There were finished products and raw
materials that have to be transferred from one place to the other, even if it was on a small scale. The
entire process underwent a transformation, with the developments that took place in transportation.
There was also a shift in the population from the rural to the urban areas. Business centers came into
existence and flourished.
People did not reside close to the production centers, and neither did the production took place close to
residential areas. Hence, the territorial distance between the production and consumption point
became huge. As a result, the process of logistics and supply chain management became important.
However, today we find world best software companies, dealing R&D services providing innovation
solutions concerning logistics and SCM. The major focus areas that they specialize in are-
Shipping management
Warehouse inventory & distribution
Contract management
Procurement
Apart from logistics and SCM, the areas where they offer new age solutions include advisory services,
building solutions that incorporate legacy components and various other technologies. Some of the core
service areas include the following:-
Logistics frameworks for managing, analyzing and collecting, high-volume data associated with
commercial shipments and inventory & distribution
Web-based, n-tier distributed logistics enterprise software
Security solutions and cargo tracking for government entities


Multi-carrier shipping management systems that support complex, high-volume, multi-location
shipping
Mobile asset tracking and supply chain management applications
The way an organization's logistics and supply chain management works contributes to the success of
business operations. These solutions are well incorporated within the business and work flow that also
offers real time inventory management apart from other benefits.
Related Links: distributed agile development, outsourced software development


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