What are the goal of logistics system?

Any organization needs to improve and develop its distribution network and logistics processes. Measuring delivery performance is very important for managers to make a decision about the balance between cost reduction and maintaining good service.

Following are the goals of an effective logistics system:

• Increased efficiency: To increase the efficiency of the supply chain, a company should promote low-cost transportation rates while minimizing overhead, total inventory, and overall cost-order processing. Another way to improve efficiency is to consider vendor performance of value-added services such as packaging, marking and quality inspection.
• Improved customer service: Lifestyle and leisure markets are now very competitive and companies need to be able to provide the online or in-store experience that consumers now expect. In direct marketing, customer service must be balanced with costs.
• Increased sales: Inbound and outbound logistics and transportation facilitate retail sales; there are many opportunities to improve the service and use them for marketing purposes. Free shipping has proven to increase sales and average order size.
• Building relationships: A good connection with the carrier representative is very important. The authoritative two-way alliance between retailer and carrier is crucial to the success of logistics execution. The measure of success is the total cost, travel time, and responsiveness of the carrier representative.