Importance of Process Improvement in Logistics Case Study

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An effective logistics strategy is crucial for an organization that operates in the business of providing a range of products and services. The logistics strategy is important for such organizations because of its role in the company's health in relation to maintaining service levels at the highest levels at all times. The strategy is also vital for bigger companies with complex organizational and operational structures in order to ensure an effective and efficient supply chain management system. In this case, logistics is a term that refers to the network of systems or processes that control the flow of resources from one company to another through a supply chain or production process. As the increased competition has become a characteristic of modern business world, companies have been forced to change their approaches towards supplying products and services to customers. This change of focus has made logistics personnel and departments to look towards process improvement in attempts to standardize processes and ensure best practices in logistics network.

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Process improvement is a means of enhancing the reliability of business procedures and practices in the logistics department or the entire business. It acts as a tool through which business processes and practices can be harmonized in order to work solidly and reliably. In essence, process improvement helps in ensuring that a business' or company's functional segments work together seamlessly to constantly provide outcome-centered service. Process improvement needs that logistics department and personnel to be flexible to an extent that they look beyond the operations of logistics and supply chain (Biondo, 2013). This is primarily because process improvement helps in understanding the internal workings or functioning of the organization's whole operational processes and practices. Through a broad focus on the logistics network and entire organization, the personnel can deal with any challenges effectively while still providing enhanced customer service.

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