1. Ensure best service quality:
Every logistics management team needs to ensure best service quality to the customer. When right quantity of goods are delivered to the right person at right place then it is said that customers are being offered best services. But delivery of defective goods or delivery to the wrong person or at the wrong place is certain indicators that need immediate attention.
2. Developing rapid customer response capability:
The logistics manager is in a continuous search of improved services to the customers and to develop a supply chain which is prompt in its approach and execution. The success of logistic manager lies in how quickly a customer’s demands are met. It happens only when all the activities and components are supervised and monitored properly. Faster you deliver the product, better are the chances of getting business and establish a competitive advantage over your competitors.
3. Minimum variance:
The difference between promised delivery and actual delivery is called variance. If a firm is not instant in its order execution then it must try and establish itself as a dependable supplier. Being dependable means what is the percentage that the goods will be delivered on time, in right quantity and quality. Logistics manager has to make serious efforts to minimize the variance as much as possible.
4. Ensure minimum cost:
There are many instances that certain cost cannot be reduced by the organization itself from its manufacturing operations. But such organizations have to meet competitor’s price and remain in business as well. In that case they depend on their supply chain partners such as suppliers, transporters, warehousing agencies and distributors to collectively make effort to reduce cost by performing their work more efficiently.
5. Ensure flexibility in operations:
Flexibility in logistics means ability to meet unforeseen exigencies in a proactive, reactive manner. It is the duty of the logistics manager to keep thinking and visualize different kind of problems in logistics operations that may impact business. While doing so, he prepares himself and the organization to develop strategies to counter balance them in the minimum possible time. He is to ensure that such emergency situations are handled in a way that they cause minimum losses in terms of time and costs.
6. Minimizing the capital employed:
It is the duty of the logistics manager to reduce the capital employed in business as much as possible. The capital employed in the business can be minimized by reducing the amount invested in inventory.