Logistic: Details and Curiosity

LOGISTICAL DETAILS AND CURIOSITIES

fulfillment and supply chain activities become increasingly complicated based on the size of client companies and their volumes, the type of goods, their characteristics, delivery methods and countless additional variants.

Warehouse management activities do not only concern the administration of incoming (inbound) and outgoing ( Outbound ) flows of goods, but include the constant monitoring and supervision of all internal and external logistics operations involved in the distribution chain.

Below are some important factors for having an excellent logistics, supply chain and fulfillment activity:

Logistics: as defined by Wikipedia , and as per the definition that we report below thanks to this site, it is the fundamental part of operational activities:

“Logistics is the part of supply chain management that deals with the efficient inbound and outbound flow of goods, services and related information from the point of origin to the point of consumption based on customer needs. Logistics management is a component that holds the Supply Chain together in Italy and around the world. Resources managed in logistics can include tangible goods such as materials, equipment and supplies, as well as food and other consumables.

Logistics activities can be divided into three main areas: order processing, inventory management and freight transportation. Traditionally, order processing was a time-consuming activity that could take up to 70% of the order cycle time. However, with new technologies such as barcode scanning, computers and network connection, customer orders can quickly reach the seller in no time and stock availability can be checked in real time. The purpose of having an inventory is to reduce the overall logistics cost while improving customer service. Having a stock of finished products in advance can reduce the frequency of transportation to and from customers and accommodate the randomness of customer requests. However, maintaining an inventory requires capital investments in finished products and maintaining a warehouse. Storage and order picking account for the majority of warehouse maintenance costs. Freight transport forms a vital part of logistics and provides access to larger markets as goods can be transported hundreds or thousands of kilometers away. Freight represents two-thirds of logistics costs and has a significant impact on customer service. Transportation policies and warehouse management are closely intertwined.

The increase in business transactions through the Internet gives rise to the need for “e-logistics”. Compared to traditional logistics, e- logistics handles low-value parcels for customers spread across various destinations around the world. In e-logistics, customer requests come in waves compared to traditional logistics, where demand is constant.

Inbound logistics is one of the primary logistics processes that focuses on purchasing and arranging for the inbound movement of materials, parts, or unfinished inventory from suppliers to manufacturing or assembly plants, warehouses, or retail stores. detail.

Outbound logistics is the process relating to the storage and movement of the final product. The relevant information flows from the end of the production line to the end user.

Considering the services performed by logisticians, the main logistics sectors can be divided as follows:

Purchasing logistics
Distribution logistics
After-sales logistics
Disposal logistics
Reverse logistics
Green logistics
Global logistics
Domestic logistics
Concierge service
Reliability, availability and maintainability
Asset control logistics
Logistics of point of sale materials
Emergency logistics
Production logistics
Construction logistics
Capital project logistics
Digital logistics
Humanitarian logistics

Procurement logistics consists of market research , requirements planning, make-or- buy decisions , supplier management, ordering, and order control. The objectives in procurement logistics could be contradictory: maximize efficiency by focusing on core competencies, outsource while maintaining the company’s autonomy, or minimize procurement costs by maximizing security within the supply process.

Advanced logistics consists of the activities necessary to set up or establish a plan for carrying out logistics activities.

Global logistics is technically the process of managing the “flow” of goods through a supply chain from the place of production to other parts of the world. This often requires an intermodal transportation system by sea, air, rail and truck. The effectiveness of global logistics is measured in the Logistics Performance Index .

Distribution logistics has as its main task the delivery of finished products to the customer. It consists of order processing, warehousing and transportation. Distribution logistics is necessary because the time, place and quantity of production differ with the time, place and quantity of consumption.

Disposal logistics has the main function of reducing logistics costs and improving services relating to the disposal of waste produced during a company’s activity.

Reverse logistics denotes all those operations of reuse of products and materials. The reverse logistics process includes the management and sale of surpluses, as well as products returned to sellers by buyers. It is “the process of planning, implementing, and controlling the efficient and cost-effective flow of raw materials, work-in-process inventory, finished goods, and related information from the point of consumption to the point of origin to recover value or properly dispose of.” ^[12]More precisely, reverse logistics moves goods from their typical final destination to gain value or for proper disposal. The opposite of reverse logistics is forward logistics.

Green logistics describes all attempts to measure and minimize the ecological impact of logistics activities, including all forward and reverse flow activities. This can be achieved through intermodal freight , route optimization, vehicle saturation and city logistics .

Documentation management: the documents used for the management of the warehouse and e-commerce logistics services, e-commerce logistics services, B2B logistics services, fulfillment services , must be managed and compiled precisely, both at a fiscal and administrative level, looking for to limit the use of paper documents but increasingly using IT and automated tools, better considering the use of AI (Artificial Intelligence in Logistics).

Logistics staff management: to ensure that logistics and operational activities are carried out according to KPIs and SLAs and with a continuous search for logistics excellence, the assigned staff must be pre- selected, qualified and appropriately trained for the specific activities.

Safety in logistics structures: it is essential that the logistics structure follows all current regulations and that the working environment is clean and safe, both to guarantee the protection of its operators and for its activities.

In fact, accidents also have a negative impact on the corporate economy.

More and more companies are choosing to entrust warehouse management to 3PL companies, specialized in providing complete outsourced warehouse management services .

There are various types of outsourcing of warehouse activities :

Assignment of outsourced logistical operational activities.
Entrusting of operational activities within its own warehouse structures: in this case the 3PL will be able to undertake to hire warehouse staff, install adequate IT systems, implement automatic warehouse systems.
A logistics outsourcing allows the company to contain certain operating costs and to make use of the specific skills of the logistics operator , such as flexibility and sharing of some capex and opex with other customers of the 3PL itself.

Order management

The preparation of B2C, D2C and B2B orders takes place using innovative IT systems and the use of AI or automatic scanners and tools.
Operational order management activities are part of that set of processes called logistics.

It is an activity that must be managed with maximum accuracy and which is part of the economy of a company.

The management of B2C, D2C and B2B orders must be managed and controlled by WMS systems, i.e. specific software that monitors and supervises all warehouse activities in a quick, optimized, high-performance and efficient way.
These are IT operating systems capable of integrating fundamental management aspects such as: master data management (customers and suppliers), products, references (SKU) and price lists.

These IT systems also help manage orders, transport documents, invoices, warehouse loading and unloading documents. It will thus be possible to have an updated and real-time situation of the order status, allowing you to maintain control over warehouse stocks and fulfillment and shipping priorities.

ESL also deals with the preparation of personalized orders such as gift packages, gift packages, Christmas packages, providing specific services ( kitting , silk paper, sample insertion, and many other value-added logistics services ).

Goods storage (Goods storage)

The logistics warehouse is that logistics structure capable of receiving goods, storing them (put-a-way) and making them available for picking, packing, shipping and delivery.
www.eshoplogistic.com deals with the management of goods storage, incoming and outgoing quantitative and qualitative controls.

The goods are deposited immediately after receipt. The goods can be located on pallet spaces, eCommerce shelves, structures for hanging garments or automated structures and in any case in the most suitable parts of the warehouse indicated by the IT systems.

An important index to always consider is the inventory turnover rate, which indicates how long it takes to consume a stock and replenish it again. There may be high rotation items (which are therefore sold and repurchased more frequently) and low rotation items (which have fewer movements and fewer sales). Knowing the turnover rate is fundamental for managing the logistics structure and for the success of a company.

In logistics operations for the storage of goods, both in the picking and shipping phases, barcode technology or RFID readers help to automate and simplify operational management.

E-commerce warehouse management

The e-commerce industry is constantly developing and changing and more and more companies are deciding to focus on online sales.

The advantages of ecommerce are countless, but it is important to consider using an ecommerce logistics operator that is an absolute guarantee, such as www.eshoplogistic.com .

Customer satisfaction is fundamental for the success of an e-commerce project which must be supported by quality, speed and economic and environmental sustainability: these are fundamental characteristics in both B2B and B2C.

Logistics outsourcing is increasingly being considered by companies, who can choose whether to outsource all of the activities (full out-sourcing or green field solution ) or just a part.

Shipments all over the world

ESL deals with shipping services e-commerce , ecommerce shipping , b2b shipping , worldwide and other tailor-made logistics solutions managed directly or via an international network.
www.eshoplogistic.com offers national and international express shipping solutions, taking care of the necessary customs procedures.

National and international transport can be managed with postal, semi-postal or express services, with tracking of goods and use of TMS online monitoring systems.

TAGS: E-commerce logistics , Logistics for e-commerce , Logistics for e-commerce sites , logistics services with e-commerce , development of e-commerce sites and logistics

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