In this short report I will be discussing ways in which information technology and information systems have been used to enhance the business of logistics. I will be looking into detail on how information technology and systems can create a sustainable advantage for a business. The three main areas I will be looking at are forecasting demand, warehouse management and distribution.
What is logistics?
Logistics and supply chain management is the process of making sure materials are collected, tuned into products and then distributed so that they can reach the user. Logistics is the full process of the gap between the materials being raw and collected to the delivery of the finished product in the users hands. “As such logistics includes;
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Sortation centres are perfect for online orders as they are tailored to finding particular deliveries for particular customers, for example if a customer was to take an order from ASOS this would be sorted in the warehouse and then shipped out to the desired delivery area (Gray , Karmarkar, et al 1992). A bonus of this is that it’s a quick and easy process and also results in a lot of available jobs, as both sorting are distribution take place in the same centre. Over the last few years’ warehouses have changed drastically, going from a large places that houses unused stock to an organised factory that works to meet customer demand. Also these days warehouses will be responsible for returns, this will often include repairs which will in turn be sent back to the consumer. (Gray, Karmarkar, et al 1992). When a warehouse has too much stock that is unwanted it can result in an online sale, this will then in turn be shipped out leaving room for new stock. Goods that are returned are often sold on to make sure that profit margins are kept up, companies try to get the best possible price for the value of the product. The production costs and demand patterns are easily combated now due to technological advances (Dicken, 2011) Due to advances in technology a lot of time has been saved in the manufacturing
4. Logistics is a critical part of a supply chain that is an integration of the logistics systems in all the organizations
Logistics is planning and executing of the movement and support of forces. When examining logistics I have to draw from my most
International trade is defined by shipping commodities and finished goods between countries, including both exporting commodities and goods from the U.S. as well as importing commodities and goods from around the world. Logistics is the process of planning, implementing, and controlling the efficient flow of goods and services through the supply chain from producer to consumer. Distribution comprises all freight carriers (water, air, trucking, and intermodal) and warehousing. Until recently, most manufacturing organizations took responsibility for the warehousing
All warehouse and logistic company strives to improve its operational efficiency to ensure all transaction runs smoothly. Technology and materials handling revolution have become significant catalysts in the evolution of smarter and efficient warehouses. Yamato Transport needs to leverage technology that can give them access to actionable information that can be used in real-time. Identify whether workers needs to have access to mobile technology such as smartphones or other technology. In addition, software solutions also can give warehouse administrators a outlook of customers, orders and inventory, as well as computerize warehouse processes effectively. (Dragan,
Coyle, J. J., Bardi, E. J. & Langley, C. J. (2003).Management of business logistics: a supply chain p
Logistics. Managing nonstop supply of right items, at perfect time from various elements is the test of overseeing supply chain. Information innovation apparatuses has helped retailers in enormously lessening process durations and achieving effectiveness.
Logistics is a process by which an item is moved from its point of creation or production to the point at which it is used as planned by a company, a government or similar institutions. The items moved within a network could be Dangerous Goods, foodstuffs, ammunition, electronics, building cranes and whole host of other products. Time and financial considerations are considered when making these plans as are government regulations that guide the movement of items within a network.
During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics
During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers ' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics management is and what supply chain management is, weather or not that they are the same meaning in operations. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is a important strategy to manufacturing or service companies.
Logistics management is defined according to The Council of Supply Chain Management Professionals (August, 2013) as “Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of
Logistics functions about the moving materials or goods from one place to another place the following area of logistics management contribute to integrated approach to logistics within supply chain management.
The logistics is the activity which has for object to manage the physical flows of an organization, with the aim of giving the resources corresponding to needs.
For some countries like Vietnam, the definition of supply chain management is still not that well-known enough to apply. Some administrators have just been familiar with the term “logistics” and applied them for all the goods flows. However, supply chain system includes product development, manufacturing, purchasing, inventory, goods distribution and logistics activities. In other words, logistics is just a component of the supply chain. Ganeshan and Harrison (1995) defined that a process from purchasing raw materials, converting them to finished goods and distributing them customers. It is used in both service and manufacturing organizations. For example, a customer goes to Citymart to buy G7 3-in-1 coffee. The supply chain will start from the demand of this customer. Since Citymart has stored a certain amount of this type of coffee to supply, which may be provided from another merchant or directly from
Managing your logistics supply chain can become very expensive, if not controlled effectively. For example, holding stock or inventory for insurance purposes can be very expensive and the stock could be of value but loses its value when it does not sell or becomes obsolete. Operating and running warehouses and distribution centers are expensive considering the building, operation, and maintenance costs involved. A company’s distribution network can be expensive in terms of capital and running costs. It is pertinent that your logistics strategy is well thought out and aligns with the company’s goals and current demands of the market. A company’s logistics strategy must be carried out allocating resources effectively and efficiently to be competitive and successful.
Transportation is a key element in the logistic chain. It joins together those components that are considered to be separated. In order for transportation and logistics to work together successfully there must be good management between them. It plays a major role in connecting it all together. Supply chain management is defined as a continuously evolving management philosophy that seeks to unify the collective productive competencies and resources of the business functions found both within the enterprise and outside in the firm’s allied business partners located along intersecting supply channels into highly competitive, customer-enriching supply system focused on developing innovative solutions and synchronizing the flow of marketplace products, services, and information to create unique, individualized sources of customer value (Ross, 1998).