Tuesday, 26 August 2014

What are the Activities in Logistical Channel? – Part Two

Continuing on from yesterday we’re looking at some of the most common activities that take place in the systems and total cost approaches in logistics.

Demand Forecasting
Demand forecasting is all about estimate the demand that there will be for products in a set future time period. Supply chain partners now play an important role in this process and collaborations are required to reduce the inventory levels found in the supply chain.

Industrial Packaging
Marketing and logistics have to consider packaging. The industrial packaging relates to logistics and it need to be protective to protect the products while being transported.

Materials Management
This is where the materials are transported in the warehouse or plant. These movements add costs onto the logistics systems. Logistics managers need to find the most cost efficient methods of managing the materials handling and reduce the number of movements to save on costs.

Parts and Service Support
After sales support takes the form of emergency services, spare part deliveries, scheduled services and repairs. It’s important to consider these costs as they are important for the distribution of industrial goods.

Procurement
Procurement is the process of acquiring raw materials, supplies and parts from outside suppliers in order to fulfil the operations of the company.

Salvage and Scrap Disposal
Salvage and scrap is part of the reverse logistics activities. Salvage is when the equipment could have value in the sum of its parts but isn’t any use as it currently stands. Scrap is when there are no parts that could be salvaged and it could only be recycled.

Warehouse Management
Inventory is stored in the warehouses for different periods of times. Warehousing has a role in both long and short term supply chains and logistics.

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