Logistics management focuses on the efficiency and effective management of daily activities concerning the production of the company’s finished goods and services. This type of management forms part of supply chain management and plans, implements and controls the efficient, effective forward, and reverse flow and storage of goods. The main aim of logistics management is to allocate the right amount of a resource or input at the right time.

Logistics management is also crucial for creating visibility into any company’s supply chain. As historical data is analyzed and the movement of goods is tracked real-time by advanced transportation management systems (TMS), logistics uses this information for process optimization and the avoidance of potential disruptions.

Additionally, supply chain visibility creates ground for major cost savings in operations. Proper logistics management procedures increase revenue and give businesses control over inbound freight; allow for the organization of the reverse flow of goods; keep inventory at optimal levels; and utilize freight moves on the proper transportation modes. These factors all contribute to cutting costs.