| Efficient production output in a company is | | | | bottom lines of businesses. Efficient logistics can |
| dependent on a number of factors. One of the most | | | | ensure maximum profitability by fulfilling orders in a |
| important factors that help businesses achieve | | | | cost effective way. This is why logistics plays an |
| business goals successfully is proper logistics | | | | important role in business today. Without proper |
| management. | | | | support from logistics, none of the other functions of |
| In general, logistics refers to the movement of | | | | a business can success. Marketing, sales and project |
| materials from point to point. But, as far as project | | | | execution all depend on proper logistics. |
| management is concerned, there is much more to | | | | Initially, logistics was a term used by the military. But, |
| logistics than the seamless movement of goods. In | | | | soon the term was used in a much broader sense to |
| large and complex projects, logistics could also include | | | | cover businesses and other activities. Although the |
| location of the facility, proper planning and | | | | term logistics is relatively new, the movement of |
| forecasting, transportation route management, | | | | goods is nothing new. Nor are the activities |
| inventory management, warehousing, packaging, | | | | undertaken to ensure the seamless movement of |
| insurance, coordination and maintaining the flow of | | | | goods. However, as distances began to grow and as |
| the transportation of goods. | | | | projects became more and more time sensitive, the |
| Logistics for project management could include: | | | | importance of proper logistics began to increase. Add |
| Transportation of goods via road, rail, sea or air | | | | to this, the effect of globalization and the emerging |
| Planning and coordination of packaging and | | | | free markets, there is so much competition between |
| transportation | | | | companies that more and more customers need the |
| Activities to ensure effective storage and its | | | | precise delivery of products at the right time, in the |
| supervision | | | | right place and at the right cost. |
| Turnkey services | | | | When you are selecting a logistics partner, it is |
| Warehouse selection and plant supervision | | | | important to remember that different companies |
| Effective loading and discharge operations | | | | offer different services. If your project depends on |
| Clearing customs | | | | the timely delivery of products, then, choosing the |
| Ensuring cargo insurance | | | | right logistics partner includes getting someone who |
| Thus, logistics in project management means the | | | | takes the right decisions for the movement and safe |
| process of managing the procurement, movement | | | | delivery of products. Thus, the company must be |
| and storage of goods form end to end, in a holistic | | | | able to resolve any order-related problems. For |
| and systematic way. This could be within the | | | | maximum effectiveness, the solutions that the |
| company or within the marketing channels or even | | | | company provides must be tailor made to suit your |
| global movement of goods. | | | | particular requirements. |
| Effective logistics, or the lack of it, impact the | | | | |