For example, fleet operators can manage asset distribution and maintenance based on information, such as work orders and parts inventory, pulled from ERP systems and feed that data back into the information flow as tasks are completed. Similarly, inventory control and supply chain insights can be automatically routed to reports, such as ledgers and the balance sheet, purchasing reports and automated ordering, and fleet and employee scheduling. By using inventory management techniques to plan ahead for increased demand in seasonal or trending products, companies can keep profits higher and make inventory turns faster, meaning the ratio of how many times you sell and replace inventory in a set period. Conversely, by noting slowing inventory turns on other products, a company can better determine when to offer discount pricing or other incentives to free capital to reinvest in goods that are in higher demand.
The most prized intellectual properties of logistics companies are their customer base, their routes, their pricing. 集運 of the industry is making money by withholding information. And even ignoring that, the logistics companies are suffering from incomplete information and severe underutilization of their assets. This approval further promoted the development of the domestic logistics park. It mentions that “China’s modern logistics is in its infancy” and expresses the belief that modern logistics will become an important tertiary industry and a new economic growth focus. From these data, we can see the trend of the vigorous development of China’s logistics park construction.
Procurement Logistics: Procuring Raw Materials and Parts
If some of that product is also damaged, the retailer’s logistics manager would transport it to a disposal site. In a second retail scenario, some or all of the goods are sent to an order-fulfillment center, where they are processed and shipped to the end customer, who likely made the purchase online. In the second example, a boutique clothing store orders stock from designers and manufacturers.
Logistics activities and fields
Global logistics is technically the process of managing the “flow” of goods through what is called a supply chain, from its place of production to other parts of the world. This often requires an intermodal transport system, transport via ocean, air, rail, and truck. The effectiveness of global logistics is measured in the Logistics Performance Index. This feature identifies a delivery type that eliminates the need to store the products in the warehouse, as they are shipped straight from manufacturer to customer. So, handling cross-docking effectively requires robust inventory control processes.
It links suppliers with customers and it integrates functional entities across a company. With the ever-growing competition in today’s market place it becomes necessary for a firm to use its resources to focus on strategic opportunities. This includes several internal factors like management style, culture, human resources, facilities and several external factors like technology, globalization and competition. This is where the concept of logistics plays a major role, i.e. it helps to leverage certain advantages the firm has in the marketplace.
Automakers practice postponement by operating market-oriented distribution centers at which relatively light manufacturing takes place. As an example, one of the world’s largest chemical manufacturers recently had to replace its ships. The ships carried materials in bulk from plants in the Caribbean to Gulf and East Coast ports for subsequent transfer to barges and rail cars for delivery to terminals at which customers’ orders were packed into containers for final delivery by rail and truck.
A warehouse management system consists of tools that streamline the workflow of managing goods from arrival at the warehouse through storage and tracking within the location to order management and dispatching further. SAP analyst Matthew York says that “warehouse management software can give a huge break with fulfillment and stock tracking.” Matt adds that in the case of 3PL companies, they also provide a massive storage area for an organization’s products. The modern era of international trade is one of increasingly complex interactions between people, firms, and organizations.