Logistics Management Hierarchy

Logistics in an organization is one of the most integral components responsible for the successful running of any business. It can be classified into inbound and outbound logistics which respectively represent the entry of raw materials and resources and exit of the finished products to the subsequent channel partners.

The logistics management hierarchy is concerned with the proper allocation of dedicated transport facilities for the entry and exit of goods. Things to be considered are essentially include cost, time and security. It is also involved in looking into maximizing the reach of the products and services which has a relaying effect on the sales and revenue of the products.

The logistics management hierarchy looks into the issues of proper distribution and selection of the right transportation system. This depends on the shipment size and the lead time. The logistics management system might be in-house or independent from any organization depending upon individual business strategies of cost management. The roles and responsibilities are delegated in line with a certain chain of command represented by certain hierarchical levels as follows:

Logistics Management Hierarchy

I. The Strategic/Top Level

This level is primarily concerned with strategizing the logistics system adopted in the best interest of businesses since logistics is an important part of the supply chain. For instance, decisions regarding the type of transportation; rail or road or air freight are taken in this level depending on the contents of the shipment, the order size and lead time. The job titles in this level are as follows:

  • Chairman/CEO
  • Non-Executive Directors
  • Sales Head
  • Project Director
  • Head, Finance
  • Market Analyst

II. The Mid/Managerial Level

This level forms the bridge between the strategic and the executive level. They coordinate the functionalities of the transport systems and also engage in partnering with other organizations for business. Hey also look into the functions of designing the routes to be taken by the vehicles to ensure that deadlines are met in a cost effective manner, the profiles being:

  • Sales Manager
  • Branch Manager
  • In-Charge Engineering Department
  • HR manager
  • Manager, Admin
  • Marketing Manager

III. The Executive Level

This logistics management hierarchy deals with the implementation of the strategies by arranging for the number of vehicles or ships or aircrafts required for proper transportation. This also involves deciding upon the type, make and capacity of the above and the warehouse facilities for inventorying to ensure the safety of the products to be transported and stored. The job titles include:

  • Warehouse In-Charge
  • Transport Manager
  • In-House Logistics Executive
  • Material Handling Executive
  • Associate, Tech Support
  • IT Executive

It is very important on part of the logistics management hierarchy to ensure proper coordination between all the levels for greater operational efficiency.

The logistics management hierarchy involves overseeing the right choice of transport facilities and determining the right distribution network for safe and timely transportation of the products.