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Importance of logistics management in supply chain

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Importance of logistics management in supply chain is undeniable. However, focus on logistics were very minimal in the past compared to other functions like Marketing, Finance, etc. But, over a period of time we are witnessing a significant shift in this attitude and Logistics is being prioritized.

Importance of logistics management in supply chain
Before we get into the importance lets understand the key functions of logistics.
Key Functions of Logistics
Functions under Logistics under supply chain management are classified as follows: –
Order processing
Order processing is the process or work-flow associated with the picking, packing and delivery of the packed items to a shipping carrier and is a key element of order fulfillment under Logistics
Inventory control
Inventory control, also known as stock control, is regulating and maximizing your company’s warehouse inventory carried out under Logistics
Warehousing is a key component of logistics management and how businesses manage the transportation and storage of their inventories. Warehousing in simple terms is the action or process of storing goods in a warehouse.
Transportation comprises the processes and systems used to manage the needs and requirements specific to the physical transportation of goods and cargo as part of supply chain or logistics management.
Logistical packaging
This function under logistics is defined as the science, art and technology of enclosing or protecting products for distribution, storage, sale, and use.
Information. Logistics is basically an information-based activity of inventory movement across a supply chain. It plays a vital role in delivering a superior service to the customers.

Importance of Logistics in 2020
Importance of logistics management in supply chain is amplified due to various Reasons under the pandemic  Let’s understand them one by one.
Unexpected change in Customer demand
A sudden increase in demand for few products and downfall in other categories. In addition to this to this the goods were classified necessary good and delivery for them is a priority.
 The logistics were looked upon to figure out a solution for the problem of timely delivery and hence changes were made to logistic systems and importance increased than the past. Both individuals and businesses expect to get goods faster, more flexibly.
New Norm of social Distancing
Delivery of goods became rather challenging as the new norm of social distancing came in resulting a drastic reform to some areas of logistics function
Disruption in technology
Use of technology, from data analytics, to automation, to the ‘Physical Internet’. This promises lower costs, improved efficiency, and the opportunity to make genuine breakthroughs in the way the industry works during this pandemic
Logistics as a Competitive function
During this pandemic every company is in a race to out beat others in terms of customer acquisition and customer retention improved Logistics function can provide us a system or process to achieve better customer satisfaction than competitors. 
Customer needs can be fulfilled in a more efficient manner. Focusing on a better logistics is similar to focusing on an improved customer satisfaction.
Improved Consumer Relations
This is the time to strengthen customer relations. Logistics helps in offering goods to our customers in an efficient and timely manner in the situation of panics, thereby helping us to build good consumer relations and customer retention. Logistics is not only important for immediate receipt of payments, but also because good customer relations can mean more business.
Supportive function to production
Production function is linked to logistics as it helps in ensuring there are enough raw materials available to make finished products. Without timely availability of quality raw materials, a business cannot make quality products. Inventory holding expense can be reduced with improved logistics


Logistics forms the backbone of economy. As Logistics Sector is expected to be a major contributor to Gross Domestic Product in coming times. Logistics helps in providing efficient and effective flow of goods services on which another sector depends.  The logistics is growing rapidly due to the upcoming demands, it is the combination of Strategies, Infrastructure and Technology upgradation, which defines whether the logistic industry is able to help its customers during this wild time.

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