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three (3) Managerial Issues in Logistics





productivity

One of the managerial issues in logistics will be productivity. In logistics, the goods and products available are the most important considerations to set up the logistics. The amount of product and goods, the weight of product and goods, the types and space usage of the goods is always the element for the logistics to make the transport decision. However, when there is a higher demand, but low productivity will cause a shortage in supply or a delay in transit, this will totally influence the logistic decision. For example, if the productivity cannot produce enough product to be delivered, the logistic count not obtaining enough product and goods to be delivered one time, the transportation cost will receive impact and possible to be profit cannot cover the cost.




network complexity

Another managerial issue in logistics will be the network complexity. The complexity in logistics commonly refers to the network complexity. In the logistic network, it was not only a route straight from start to end, but usually, there would be many of the pauses between the start and end such as the warehouse and port. Each pause in the route will cause delay of the transit time, and if the product cannot reach the destination in time, it will totally influence the consumer trust. Based on the network complexity, the transit time, restock time and so on will be influenced. However an international trade company is unable to avoid a complex logistic network.




risk

Third will be the risk. For logistics, the requirement is to send the goods and product to reach the destination safely but how about if the product did not reach the destination safely and even nothing left to reach the destination. It means that the logistics need to consider the risk. For example, if the product is sent by shipment but the ship meets the pirate, how much is the possibility the ship is safe to pass the area, if the ship needs to hire the guard. All of the risk is one of the important factors and issues to be considered by the logistic management.



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