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:
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