Logistic process

Logistics is essentially the process of delivering things (raw materials or finished products) from one location to another. So, warehousing and transportation serve as the two main purposes of logistics. The activities involve organizing, carrying out, and maintaining the movement and storage of commodities, as well as the provision of services and the transmission of information about the starting point and the destination.

Types of Logistics

Inbound Logistics

Inbound logistics is the process by which a corporation moves, stores, and receives goods. The procurement of high-quality goods, the reduction of overhead expenses, the avoidance of material waste, the increase of sales, and the shortening of manufacturing times may all be facilitated by effective inbound logistics. The cornerstone of inbound logistics is the connection between businesses and their suppliers.

Outbound Logistics

Outbound logistics refers to the movement of finished goods from a warehouse or distribution center to customers. The steps of outbound logistics are distribution, transportation, last-mile delivery, and warehousing and storage. It is a crucial component of a supplier's overall customer relationship management plan. Outbound logistics describes the process through which companies send their goods to their final clients.

Reverse Logistics

Transporting goods from the end user to the seller is known as reverse logistics. It comprises the gathering, reviewing, classifying, and reconditioning of android distribution. You have definitely experienced this situation at least once when you have ordered a product online that does not meet your needs. After that, you submit a request for a replacement or refund of the merchandise. The business comes to your house and picks up that item. In other words, reverse logistics is the process of getting the product from your side to the company.

Importance of Logistics Whether you're a manufacturer or a reseller, you'll reach to your customers by promoting techniques or by word of mouth. But your product will reach them by a correct distribution network. It depends on the vendor whether or not they wish to manage the delivery system by themselves or source the provision to a reliable company to handle their offer chain management. Many distributors, dealers and retailers rely upon provision for the delivery of merchandise they need. the main responsibility of any provision is to deliver the correct product within the right amount to the correct client at the correct time. Logistics Performance Measures logistics management is such an important activity that focuses on the efficiency and effectiveness of daily operations.

Whether it is logistics or any other service, efficiency is critical. The following are some of the key logistics efficiency metrics

• Shipping Time
• Order Accuracy
• On-Time Delivery
• Transportation Cost
• Damaged Products
• Inventory Turnover Ratio

Shipping TimeWhen a customer places an order with you, it is critical that you ship the order as soon as possible and acknowledge the customer. The speed of your response has a positive impact on the customer and demonstrates the agility of your service.

Order Accuracy is simple to calculate and maintain warehouse stocks. However, it takes extra effort and focus to keep the products accurate. Any incorrect products delivered to a customer will be returned, and please send the correct ones. As a result, the logistician will suffer a loss.

On-time final delivery sometimes referred to as on-time delivery (OTD), is the proportion of goods delivered to clients on time relative to the total amount of goods dispatched. The KPI gauges the effectiveness of the supply chain and delivery activities. The units shipped on time cover the entire order and are not piecemeal.

transportation cost Main logistics makes an error in calculating the correct transportation cost. To improve the efficiency of your logistic service, take the shortest route possible to save money on fuel.

Damaged Products Due to a variety of factors, products may occasionally arrive at the customer in a damaged state. As a result, you should always define your terms and conditions for customers. Always specify who will bear the loss if a product is damaged in some way and the customer receives it in that condition.

Inventory turnover ratio is a ratio that indicates how many times inventory was sold in a given time period.

References

• Lambert, D., Stock, J.R., & Ellram, L.M., (1998), Fundamentals of logistics management

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Author: Billa Nalini