Order Size Analysis

Inbound logistics today is highly inefficient. Most retailers use multiple systems to manage the process and so suffer from fragmented visibility. Prioritisation and scheduling of orders are done on an ad hoc basis, with little consideration of current demand and inventory, while scarce resources, such as dock door and yard capacity, are often poorly utilised.

Over the past few decades, logistics activities have gained increasing strategic importance for almost every company all over the world. Fixed costs of production have increased, consumer demands have become more complex and are harder to predict, both in time and place. Technology is rapidly changing around the world every new day there is a new and advance technology and product life cycles have shortened while product range has increased. Now more than ever, companies are faced with the challenge of producing an increasingly large variety of products in a responsive manner while keeping materials and inventory to a minimum to fulfill the customer demand

-The totes and gaylods are going out to the supplier very light weight wise multiplying the truck loads to the supplier but unfortunately the average weight per truck load is only approx.. 6,000 pounds. This is for supplier, that is paying the freight cost, has a negative impact. As the truck loads going out to the supplier very light weight wise the number of truck loads per months are increasing overwhelming them, as a real evidence the turned around of empty the trailers is getting slower delaying out operations process.

By modifying the transportation route, the trucks were able to get the product inventory to intended destinations somewhat faster which was another factor in the stores stabilizing product inventory on location.

The second reason for supporting truckload delivery is the value density. It can be calculated as follows

Less than truck Loading (LTL) – Means loads or goods that take up less or just a portion of the freight truck. It costs less than FTL but it can take time to deliver since the freight truck passes to many destination points of other clients’ goods that hired that freight truck service. For example, a mycofarm business of San Diego that produced numerous shitake mushrooms decided to send its produce to nearby state of Nevada. It selected LTL to reduce

With that being said, knowing the routes products take in getting from point A to point B requires a planning process with the ability to create practical shipment arrangements by consolidating orders to optimal shipping volumes by also taking into consideration the variety of trucks, the number of stops in routes, and the potential for outside restrictions according to the Supply Chain Digest (Web, 2014). With most companies that process shipping trucks, drivers spend valuable time waiting for the trucks to be loaded and unloaded with product shipment, causing a loss in revenue gained through quicker delivery times customer. With proper planning and implementation of a network wide system throughout PepsiCo’s supply chain, the delivery

In management of costs for any particular business, any method that deems to cut down on costs is highly endorsed. This is in harmony with maximization of profits, which is the core purpose for any company or business. In operations department, one of the ways in which a company or a business can cut down on costs is by applying the hub-and-spoke distribution network. A hub-and-spoke distribution network is a consolidated and fused logistics system to lower distribution costs, (Hudson, 2003). This type of system not only moderates freight costs, but also ameliorates cycle times and moderates inventory as well.

Transportation and logistics coordinate the movement of goods and people. The transportation and logistics industry is the catalyst that propels the American economy. However, it works both ways. Economic pressures on the national, regional, and local levels affect decisions and policies made by logistics managers. This paper will explore the intricate relationship between the United States economy and Transportation and Logistics management.

The advancement in technology and imaginative techniques, the procedures and systems of how cargo is moved and handled is streamlined. Prior to containerization, moving freight from one location to another across the globe was a tedious practice and often took an extended amount of time. Manufacturers would use various configurations with dissimilar sizes and weights which led to additional time at each location being required to handle the different sized cargo. The use of intermodal containers has changed the shipping industry allowing for multiple modes of transportation to rapidly cross load the containers and mover the containers to the next destination. Implementing the use intermodal

Cooper, M. C., D. M. Lambert, and J. D. Pagh. 1997. “Supply Chain Management: More than a New Name for Logistics.” The International Journal of Logistics Management 8 (1): 1–14.

For the greater good of the environment, is upgrading of companies fleets from older combustive trucks to environmentally friendly vehicles. Also, reducing the return trip back with empty trailers, box cars, and ships, companies will work with other parts of the world and other companies to coordinate transportation with third party logistics. Designing a pack that will utilize such items are cardboard boxes, shredded paper or recyclable paper for support, and minimum marking on the packaging to make a better recyclable and environmental safe product. Diversion of hub-and-spoke logistics network structured through a source allocated that will give a diverse method and points to most paths and defining routing system that

Edward Frazelle. (2001) claims that distribution warehouses and distribution centers accumulate and consolidate products from various points of manufacture within a single firm, or from several firms, for combined shipment to common customers. Such as warehouse may be located central to either the production locations or the customer base. Product movement may be typified by full pallets or cases or broken case quantities out. The facility is typically responding to regular weekly or monthly orders. Warehouse also receive, pick, and ship small orders for individual consumers. As a fulfillment warehouse and fulfillment centers.

Logistics encompasses all the activities between the point of origin and the point of consumption, involved in the forward and reverse flow and storage of goods, services
and related information.

Logistics is the organization of the flood of things between the reason for starting and the motivation behind use with a particular finished objective to meet necessities of customers or associations. The advantages administered in logistics can fuse physical things, for instance, sustenance, materials, animals, equipment and liquids, and moreover extraordinary things, for instance, manage time, information, transport unit Pricing and Quantity , particles, and essentialness. The logistics of physical things generally incorporates the joining of information stream, which ismaterial dealing with, creation, packaging, stock, transportation, warehousing, and every now and again security. The versatile nature of logistics can be illustrated, bankrupt down, envisioned, and redesigned by dedicated diversion programming. The minimization of the usage of benefits is a commonplace motivation in logistics for import and passage.