Managing Logistics: Areas, Objectives, and Costs for Efficient Logistics Management

Logistics coordinates the flow of materials along the Supply Chain through organizational, managerial, and strategic activities. It is divided into three areas: inbound logistics (procurement and warehousing), internal logistics (production flows and processes), and outbound logistics (storage, preparation, and distribution of finished products).

Logistics KPIs measure performance to ensure effective and efficient service, balancing speed, accuracy, and costs. They are based on three key factors: warehousing, transportation, and service level. These indicators support decision-making and evaluate flows, resource utilization, and the quality of internal and external service.

Logistics costs significantly impact company revenue and comprise various components. Due to their complexity, it is crucial to constantly monitor them using appropriate tools to ensure control and support effective decisions.

To optimize logistics, it is essential to question costs, technologies, and decision-making criteria. This awareness guides more effective management of the entire chain, from inbound to outbound. Makeitalia proposes a structured three-phase approach to improve processes with a view to continuous optimization.