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1. Transportation management: Transportation enables the means of transfer of inventory given the location & network framework developed earlier. This involves the selecting the modes of transportation like Air, Water, Rail, Road & the decisions relating to o tso rcing this activities to other agencies. !election of the modes of transportation depends on the following factors:
!peed & reliability loss& damage "nventories #reight rate $arket competitiveness %ompany policy & c stomer infl ence &'ternal market infl ences.
The aspects of transportation management is an essential factor #acility (ocation Transportation cost consistency. ). Inventory management: "nventory management concerns with the decision regarding the amo nt of type & material stored at vario s facility location. These decisions will be affected by the decision made nder the f nction of facility location & transportation e.g.: the location of wareho se & retail o tlets.& modes of transport whether fast or slow will affect the * antity type of material to be stored at facilities location. +. Warehousing management: Wareho sing provide the ade* ate space for the inventory at the right location, npack aging, sorting, & consolidation of material & modification of material elements if re* ired .the role of wareho se provide the economic & service benefit to the logistical system. &conomic benefits: , movement consolidation, break b lk, cross-dock, processing .postpone movement & stock piling. !ervice benefits are spot stocking, assortments, mi'ing & prod ction s pports.
/. Material Handling system: $aterial handling activities are re* ired while nloading, moving & loading material at facilities. These incl de the variety of mechanical e* ipment like %onveyors, #orklift, Tr ck, and %rane. 0ne of the considerations of effective material handling is the minimi1ation of prod ct damage d ring handling. 2. Packaging: "t helps in achieving the ob3ective of maintaining the material in the right condition thro gh the logistics process. 4ackaging decision is impacted by re* irement of other activities like protection & facilitation d ring transportation, material handing & storage as so ltimately c stomer re* irements.
How Logistics
% stomer !ervice is a core f nction of marketing management b t the deliverables of % stomer !ervice are e'ec ted in (ogistics. Where the marketing team have sec red an order from a c stomer, that order m st be picked in wareho ses and loaded on o tbo nd tr cks for delivery to the intended c stomer5 th s if delivery is delayed and or wrong picking was made, then c stomers feedback will be not good. "n fact, logistics cooks the fish and marketing only go and harvest the fish.
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4roblems in s pply of materials, ! dden labo r strikes, (oss d e to fail re of power s pply, etc.
"n s ch cases, the difference between planned prod ction and act al prod ction can be bridged by inventories held in stock.
maintaining the right amo nt of stocks of materials, components, etc. 0ver stocking is avoided. Therefore, the working capital will not be blocked in e'cess inventory.