The logistics department: What are its main functions?

Those directly involved with any form of commercial endeavors, specifically those geared towards e-commerce, are aware that without customer satisfaction, there is no business. The customer dictates the flow and distribution of any product or service. That is why a logistics department is imperative to any functioning business. Without it, customer satisfaction cannot be measured and the process in which a product reaches a customer would not be calculated correctly. These are only a small amount of things that the logistics department takes charge of within any business. With the focus being on calculations and keeping tabs on the supply chains, the logistics department has a very special job within any and all business.

What exactly is the Logistics Department?

As aforementioned, Logistics focuses on understanding the entire process overseen between the origin of an idea or product and the eventual distribution and use of said product or service. Take Amazon as an example. The logistics department would take charge to determine what kind of customer is purchasing what products, how those products reach the customer, and overall customer satisfaction in relation to the product purchased. Consider it the brain within the body, with the body being any business venture or sale of goods and services. As the goods and services are being manufactured, distributed, and even consumed, the logistics department is hard at work trying to understand exactly how it all happened. All of the ups and downs are taken into account, as they can help understand potential and future successes as well as failures. 

Management and Oversight: some of the functions of Logistics Departments

With many successful enterprises working with a productive flow within their supply chains, a good logistics department can help determine just how things are going in many different departments of operation. This means overseeing things like shipping and handling, project development, inventory management, and studies of supply and demand. Imagine any business that does not keep a consistent track of their growth, client base, or numerical value. That kind of business would not make it in the competitive world that it inhabits, thus making it quite ineffectual. As businesses begin to grow and the customer base does as well, the need for this kind of study could make or break the entire future of any business. 

Problems encountered within Logistics Departments 

If there were one specific example of the biggest issue faced by logistics departments worldwide it has to be the COVID-19 epidemic. With most of the world having faced a lengthy lockdown, that meant many workers not being able to show up, and thus many products not able to be manufactured. This affects supply chains all over and causes major holes in the supply chain overall. For instance, there was a recent shortage of baby formula with, as of May 19, 2022, “Retailers country wide [were] reporting that about 40% of baby formula [was] out of stock” (Howells, Forbes). There were many reasons for this, such as the aforementioned lack of workers but there were other logistical issues like product recalls and manufacturing plants no longer in operation. It is in moments like these where a successful logistics department must provide utmost feedback and solutions for future supply chains and other departments. 

Good Logistics = Great Business

The importance of a successful logistics department cannot be stressed enough. Without it, a lot of information about the distribution and consumption process is all but lost and most businesses would have millions of products improperly delivered or issued to the wrong benefactor. It plays probably the most important role in ensuring the rightful delivery of products and is essential to any modern enterprise. Listening to the logistics department can make the ultimate difference between a successful business and one that fumbles by not paying attention to the greater picture in the long run. 

We recommend that you keep updating yourself on the latest trends and acquire the right knowledge. If you want to know more about the functions of the Logistics Department, I invite you to look closely at the Máster en Logística, Transporte y Cadena de Suministro.