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Impact of Effective Logistic Management on Organizational Performance

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  • Kamran Azeem

    (Lecturer KASB Institute of Technology)

Abstract

Through this research it will be identified that how firm gets added value in its organizational growth in terms of effective cost and operational efficiency. The overall goal of the research is to introduce model regarding logistic management effected by various factors. Effective logistic management does not require the specified size of organization to perform but to ensure efforts to be cost efficient and appropriate processes in order to avoid wastage of material, time and energy. Therefore, it is an important factor for any organization to keenly focus their logistics management area for both inbound and outbound activities. Designing and implementation of performance measures criteria is continuous process towards taking the best decision in favor of firm for future growth and development. Studies thought that performance management has a relationship with suppliers, delivery of finished goods, inventory management cost and customer satisfaction. Performance management process as a part of logistic management system linked with customer satisfaction. Effective logistics activities and capabilities of organizations lead towards firm success. However, it is also argued that logistics pledge flow of raw materials in organized pattern in a way which reduces the operational cost and enhance process effectiveness to meet customer and market expectations. Competitive advantage in respect of customer satisfaction and fulfillment of market needs may be achieved by the organization through effective logistics and supply chain management. Competitive advantage include two major types of advantages i.e. cost advantage and value advantage. Where cost advantage provides benefit of low cost on production and transportation whereas, value advantage creates positive perception and reputation of organization in market.

Suggested Citation

  • Kamran Azeem, 2018. "Impact of Effective Logistic Management on Organizational Performance," KASBIT Business Journals (KBJ), Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 11(1), pages 95-109, December.
    • Handle: RePEc:ksb:journl:v:11:y:2018:i:1:p:95-109
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    File URL: http://kbj.kasbit.edu.pk/Volumes/Vol11/P5%20Vol.11.pdf
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    References listed on IDEAS

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