Leveraging Logistics Management to Meet Customers’ Expectations: A Quantzig Case Study on the Manufacturing Industry

Nov 6, 2018

Manufacturing Industry Overview

Manufacturing industry accounts for 12% of U.S. GDP, making it one of the most significant sectors in the U.S. Over the five years to 2018, the manufacturing industry was forced to contend with sustained international competition. Some of the largest consumers of this industry’s products, including industries involved in nonresidential construction and manufacturing, had strong performance during the five-year period. While import penetration remains to negatively impact the industry, powerful performance from downstream industries will mitigate some of the effects of increasing imports.

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Importance of Logistics Management

Logistics management is a part of supply chain management; it plans, implements and handles the flow and storage of goods and services in order to satisfy customers’ demands. The functions of logistics management include meeting customer demand, providing superior services and is essential for building visibility into a company’s supply chain. As better logistics makes your products more accessible to an increasing group of people, it a very important tool in creating value for customers. Logistics management is important for companies to understand their key metrics, main processes and long-term goals for their supply chain, so they can start shipping the right products to the right place at the right time.

Functions of Logistics Management

The importance of logistics management lies in satisfying the customer demands. There are 6 key functions of logistics management. The functions of logistics management include:

  • Inventory Planning and Management – Inventory planning involves creating forecasts to decide how much inventory should be on hand to meet consumer demand.
  • Warehousing – Under this function goods are stored after manufacturing till the time they are required for consumption.
  • Packaging and Storage – To maximize the storage capacity of a warehouse, the company should develop their packaging so that the items can be stored easily on pallets.
  • Transportation – Goods need to be transported from supplier location to factory and thereafter from factory to customer. 

Why Quantzig?

Quantzig, with over 15 years of expertise has assisted the clients across the globe with end-to-end data modeling capabilities to leverage analytics for sound decision making. We believe that the strength to tackle the actionable data is what drives a company towards success.

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