The key factors underlying the recognition of the importance of logistics management are increases in logistics cost, restructuring of international market boundaries, and rapid development of computer and information technology worldwide. It is noted...
The key factors underlying the recognition of the importance of logistics management are increases in logistics cost, restructuring of international market boundaries, and rapid development of computer and information technology worldwide. It is noted that the adoption of the systems approach and total cost analysis concept and the recognition of logistics paradigm can help create a firm's competitive advantage in the marketplace. As such, companies view logistics as an offensive marketing weapon and are likely to make it an integral part of their business strategy. Full implementation of integrated logistics management should be based on the total cost analysis and the multidimensional logistics objectives.
There has been a notable absence, however, of research efforts based on the identification and assessment of complex challenges the local manufacturers face when employing an integrated logistics management system.
This article reviews the definition of logistics, its role in each function, and how to measure its effectiveness and presents directions of how to enhance logistics management effectiveness within the firm based on an empirical field survey findings in Kumi area, Kyongbuk province.
The factors contributing to the effective logistics management systems can be summarized as (1) well-defined policies and practices adopted by the top management; (2) selection of fully skilled and competent employees who can carry out their respective job responsibilities within the integrated system; (3) integrated transportation system; (4) standardization of interrelated unitload system such as transportation, warehousing, and information; and (5) utilization of the logistics information system.