Ferdinand Risco on Efficient Logistics Management
Ferdinand Risco said Supply chain management includes logistics in order to maximize not only the company but also the work of business partners. Logistics is a more focused concept than narrow-minded SCM, i.e. Globalization and resource management of local units instead of entire networks of production sites. Logistics is, in a business sense, the management of the flow of goods from the place of origin to the place of consumption to satisfy the needs of customers and companies.
The purpose of efficient logistics management is to ensure maximum competitiveness and profitability for the entire network and supply chain of the company, including end-users. Various aspects of supply chain optimization include linking with suppliers, eliminating bottlenecks between sources, striking a balance between lower material costs and transportation, implementing timely techniques to improve production processes, maintaining the right mix of sites (e.g. Factories and warehouses) to serve customers and markets, and using location assignments, vehicle route analysis, dynamic programming, and traditional logistics optimization to maximize distribution efficiency.