Monday, 25 August 2014

What are the Activities in Logistical Channel? – Part One

There are lots of activities that are part of the systems and total cost approaches in Logistics. Over the next two days we’re going to take a look at these activities.

Customer Service
Customer services focuses on the happiness of the customers. This means logistics needs to make sure they get the products they ordered at the right time and at the right place.

Facility Location Decisions
Three factors go in to the success of retailers, location, location and location. Logistic systems will also be successful based upon the locations of the production areas and the warehousing. The decisions around these locations have impacts on the business and are therefore important to consider.

Inventory Management
The inventory is the stock that needs to be maintains to sell to the consumers or to be used in manufacturing and assembly. There are three costs to consider, holding, ordering and being out of stock.

Order Management
Order management relates to all the activities that happen between the time of when a customer places an order and when that order is received by the purchaser. These processes need to be clearly visible with the customer.

Production Scheduling
This is the activity that determines how much a company needs to produce and the time when it must be produced by. This is where production and logistics need to work together.

Returned Products
Returns happen for a number of reasons such as damages, wrong orders, dissatisfied customers etc. There has to be logistical services and systems in place to cope with these movements of products.

Transport Management
The transportation management relates to the different transportation activities that take place within the company. It’s a costly part of the logistics activities so efficiency is key.

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