Most if not all business organizations rely on the use of logistics and related methods to help them run smoothly. As such, many look into different factors that can negatively affect the logistics in their organizations. They tend to examine the negativities that might hinder the effective flow of the supply chain management or other activities. Organisation also looks at some of the positive logistics attributes that an organization needs to rely on to ensure effective success. Below is a discussion of some of the positive and negative factors in logistics that leaders in an organization need to consider with the aim of ensuring lasting success in their firms.
Some of the important factors that lead to success in the logistics of any firm include the need to build an efficient logistics information system in the firm (Draskovic 2019). This enables the free flow of information both within and outside the firm for better success. Organizational leaders also need to work with a recognized world logistics provider as one key stakeholder and partner. This will help the firm bridge any existing gaps in its logistics and other managerial activities. Effective logistics also require the leaders in the firm to increase competitive advantage, the universality of their supply chain, and the level of quality of the goods and series they provide to their clients.
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Similarly, it is paramount that the leaders in the firm should also have effective transportation links and advanced logistics system to aid the firm in proper logistics management. The leaders should also aim at embracing effective logistics activities, rely on stability and profitability in all operations in the organizations. Moreover, they also need to ensure that they use effective sustainable development strategies in all the departments.
On the other hand, some of the negative factors that might affect the logistics in any organization include poor political relationships between companies that belong to the same market, industry on a nation (Draskovic, 2019). Studies have revealed that politics play an important role in the development of business activities. Poor political relationships a re not only harmful to the business but might also hinder the developments in their logistics. The other factor that can lead to negative effects in any logistics is the differences that exist in institutional development in the countries or regions in which the company operates. Organizations may also suffer huge sets back in their logistics based on the different rules of operation that exist in different countries. This factor mostly affects international firms working in foreign markets.
Similarly, laws of the various countries may also affect the logistics in any organization. This is because all nations have different laws that govern the operations of the firms in their countries. The leaders in the firm also need to rely on different statistical factors to help them evaluate and examine the different figures in the logistics activities (Draskovic, 2019). For example, they can use different statistical formulas for production in relation to the number reflected in client consumption, rates of returns, profits, and losses. These numbers or numerical values are important because they help the leaders to come up with a clear picture of how the logistics and related activities affect the success in the firm. Just like any other department in any organization, the department of logistics also needs effective communication and information systems. Failure to have such a system will lead to poor channels of communication which may hinder effective development in logistics and related activities. As such, it is important for the leaders in the firm to ensure that communication is key in their activities.
References
Draskovic, M. (2019). Perception of the Impact of Negative Externalities on the Logistics Development. Amfiteatru Economic, 21(50) , 228-239.
