What is logistics controlling?
Logistics controlling: How to ensure logistics management goals are met
The terms procurement management and logistics controlling are closely linked, as the latter is part of the overall management task. The goal is to continuously monitor the achievement of planned values and, if necessary, to Adjust production depths, lead times or the scope of the parts spectrum to enable efficient processes. Logistics controlling is also a superordinate area that aims at planning, controlling and coordinating all sub-areas of operational logistics.
Definition logistics controlling
How efficiently or economically does a company operate with regard to logistics? Logistics controlling provides answers to these questions, as it involves the permanent monitoring of the economic efficiency of individual processes and the identification of potential savings (including rationalization). At its core, logistics controlling is based on cost and activity accounting, based on a canon of key figures that vary from company to company.
Note: Logistics controlling primarily assumes the role of an early warning system by focusing on the key figures that can be used to identify changes at the smallest level and thus map cause-and-effect chains. Which key figures are selected, how they are defined in each case and how their function or significance is assessed depends on the relevance of logistics processes for the company itself or the degree of organization in general.
Logistics controlling reveals need for action
There are various instruments that can be used to set up and implement logistics controlling. Often, however, these are not used singularly, but are part of a toolbox that includes, among other things, an ABC analysis, break-even analyses or value analyses. The guiding principle in setting up logistics controlling is always that specific costs are assigned to each individual work step. This applies not only to the subareas of logistics themselves, but also explicitly to interfaces between these areas - processes in subarea A thus have an influence on efficiency in subarea B, which in turn can affect aspects of subarea C.
The task of logistics controlling is therefore to monitor the functional areas of operational logistics holistically in order to identify irregularities or deviations from standards, to present processes transparently and to be able to take measures to rectify problems or increase efficiency.
By assigning a cost value to each aspect, this also provides a better understanding of the relevance of lead times, inventory levels or overall delivery readiness.