Latest Trend in Logistics

For  every  business,  logistics  is  the  path  of  success  because  the  entire  path  for  movement  of goods, services and information from one place to another place (from point of origin to point of consumption).

Logistics not only deals with movement of information but also maintain the huge amount  of  relevant  data  electronically,  maintain  adequate  level  of  inventory,  electronically updating of order when the level of order reaches at ordering point.

Logistics means the art of managing the flow of raw material and finished goods from the source to user. Logistics to get goods from where they arise to the right place in the right form, at the right time, at the right cost. “Logistics is an integral part of marketing process”.

Logistics successful deals with follow of 7 R’s

•   Right price

•   Right product

•   Right quantity

•   Right place

•   Right condition

•   Right customer

•   Right condition

But according to my view, above all these criteria, right decision also influence the success of logistics. If  amount,  time  and place decision  are  not taken proper,  then  it  adversely  affect the operation  of  business.  If  the  order  amount  will  not  decide  appropriate  then  it  leads  to  create under stock or over stock.

Logistics management is defined as a process of planning, implementation and controlling the movement of raw material, products, services, and data from the stage of production to consumer end user.

Logistics  management  is  the  element  of  supply  chain  management  and it is used to implement and control the   efficient,   effective   forward,   reverse   slow   or   storage   of   goods,   services   and information.   The   complexity   of   logistics   can   be   reduced   by   simulation   software.   The minimization of the use of resources is a common motivation in logistics field.

Increase   in   e-commerce   gives   birth   to   the   e-commerce   logistics   which   leads   to   order electronically, updating of stock electronically and payment electronically all these factor reduce the cost and resources of logistics. There are apps for trucking miles driven, freight sent, inbound orders and customer service interaction all are managed through applications.

MAJOR TECHNOLOGY CHANGE THE FUTURE OF LOGISTICS INDUSTRY

•   Shipment tracking system 

•  Internet of things

•   Radio frequency identification

•   Enhanced GPS accuracy

•   Social media

•   Automatic information technology

•   Warehouse robotics

•   Mobile apps

•   Electronic data interchange

•   Enterprise resource planning

1. Shipment tracking system: Today, internet and software advances allow the customer or supplier both to track the ship due to use of tracker system 24x7. It allows the customer to manage and monitor the ship.

2. Internet of things: Shipment tracking system only tracks the ship but IOT open various opportunities for supply chain.  Sensors  are  built  into  cabs,  cargo  ship,  train  etc  and connect  to  an  alarm  system  that  is  monitoring  and  tracking.   This sensor process information to supplier.

3.   Radio frequency identification: RFID technology is a labor saving way companies can track their inventory. A tag is placed on the product and radio waves are sent out. Many companies are using RFID tags in their distribution warehouse to monitor the containers.

4. Enhanced GPS accuracy: Now everyone uses GPS, it increase productivity and satisfied customer by tracking trucks location and improving hauls to access traffic.

5. Social media: 59% of Americans who have a social account agree that customer service        via social media has made it easier to get customer feedback.

6. Automatic  information  technology:  Auto  ID  is  the  term  used  to  illustrate  the  straight entry  of  data  and  information  in  the  computer  system  and  microprocessor  controlled device.

7. Warehouse robotics:   AGVs are portable robots used on the warehouse floor. They are controlled by computers and maintain stock without the need of board operator.

8.   Enterprise resource planning: ERP software is used to maintain the appropriate level of resources  and  share  a  common  data  and  data  model,  deep  operational  end  to  end

processes.

MAJOR  ACTIVITIES OF LOGISTICS 

•     Transportation: transportation department analyze the expenses of the logistics firm and also faster delivery of the products. Proper packaging of product ensures safety of goods and also determines the best route for delivery.

•    Warehousing:  goods  are  stored  in  warehouse  according  to  appropriate  temperature  so that off season products are also available all the time. Warehouse should be located at that place through which the transportation cost will be minimized.

•     Order processing: order processing deals with the fulfillment of customer order. It start when  the  customer  place  an  order  and  end  with  completion  of  order  with  customer satisfaction.

•   Inventory management: inventory management deals with maintain of appropriate level of inventory so that the business not face the problem of over and under stocking. Now, the  business  not  needs  to  maintain  huge  amount  of  stock  due  to  availability  of  faster source of transportation available in the market.

•     Purchasing: it deals with the procurement of goods and services at that right time, right amount and right price at that point where carrying or ordering cost will be minimize and at the same point in which total cost also is minimize.

•     Packaging:  packaging  of  product  is  done  in  a  manner  which  increases  the  safety  of product through the movement of goods and services from one place to another place.

•     Provide  information:  business  cannot  make  sufficient  profit  up  to  the  information  of product  was  not  spread  at  all  the  targeted  area  and  this  became  possible  through advertisement.

At last, we can conclude that logistic is one of the growing industry in the economy.

Technology updating in logistics is growing day by day which reduce the time for order processing.

Author:

Tara Rani

Student BBA 3RD Year Management Dept. Geeta Engineering College