Logistic Management System
Logistics defines the management of the flow of goods and services in between the point of origin and the point of use in order to meet the requirements of customers or organizations. Logistics comprises the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. Logistics is a supply chain pathway adding value of time and place utility. Today the complexity of production logistics can be modeled, analyzed, visualized and optimized by plant simulation software, but is constantly changing. This can involve anything from consumer goods such as food, to IT materials, to aerospace and defense equipment.
Logistics is one of the main functions within a company. The main targets of logistics can be divided into performance related and cost related. They are high due date reliability, short delivery times, low inventory level and high capacity utilization. But when decisions need to be made, there is always a tradeoff between these targets. This is what makes being a logistician challenging and interesting.
Inbound logistics is one of the primary processes and it concentrates on purchasing and arranging inbound movement of materials, parts and/or finished inventory from suppliers to manufacturing or assembly plants, warehouses or retail stores.
Outbound logistics is the process related to the storage and movement of the final product and the related information flows from the end of the production line to the end user.
Given the services performed by logistics, one can distinguish the main fields of it as it follows:
- Procurement Logistics
- Production Logistics
- Distribution Logistics
- After sales Logistics
- Disposal Logistics
Procurement Logistics consists of activities such as market research, requirements planning, make or buy decisions, supplier management, ordering, and order controlling. The targets in procurement logistics might be contradictory - maximize the efficiency by concentrating on core competences, outsourcing while maintaining the autonomy of the company, and minimization of procurement costs while maximizing the security within the supply process.
Production Logistics connects procurement to distribution logistics. The main function of production logistics is to use the available production capacities to produce the products needed in distribution logistics. Production logistics activities are related to organizational concepts, layout planning, production planning, and control.
Distribution Logistics has, as main tasks, the delivery of the finished products to the customer. It consists of order processing, warehousing, and transportation. Distribution logistics is necessary because the time, place, and quantity of production differs with the time, place, and quantity of consumption.
Disposal Logistics main function is to reduce logistics cost(s), enhance service(s), and save natural resources.
Software is used for logistics automation which helps the supply chain industry in automating the workflow as well as management of the system. There are very few generalized software available in the new market in the said topology. This is because there is no rule to generalize the system as well as work flow even though the practice is more or less the same. Most of the commercial companies do use one or the other of the custom solutions.
But there are various software solutions that are being used within the departments of logistics. There are a few departments in Logistics, namely: Conventional Department, Container Department, Warehouse, Marine Engineering, Heavy Haulage, etc.
Software used in these departments:
- Conventional department : CVT software / CTMS software
- Container Trucking: CTMS software
- Warehouse : WMS/WCS
Improving Effectiveness of Logistics Management:
- Logistical Network
- Sound Inventory Management
- Warehousing, Materials Handling & Packaging
Benefits of Logistics Management System
Logistics for a business includes physical distribution, material handling, packaging, warehousing, freight transportation, sales order processing, inventory planning and production planning. Logistics management is that part of SCM which in order to meet customer requirement, implements and controls forward and reverse flow and storage of goods, services between the point of origin and the point of consumption. Logistics involves getting in the right way, the right product, in the right quantity and right quality, in the right place at the right time, for the right customer at the right cost. Early involvement in product development projects and product launch plans results in smoother logistics operations. Logistics play an important role in the coordination of the activities in the entire supply chain, product development and commercialization of the products. Logistics also contribute to the returns management process.
Whatever be the size of the business it is better to use logistic management software as it provides the following benefits:
- Logistics software allows the shippers to reduce expedited shipments through better shipment planning and system directed exceptions handling.
- Logistics software helps in creating route maps for shipments, that is making sure the correct carriers are selected and the optimal shipping mode used.
- Logistics software technologies also automate functions such as load tendering to carriers, paperwork and load planning. Automation also helps the processes to work more efficiently and more effectively.
- Logistics software provides information on a carrier which can allow the business to receive a lower rate if possible.
- Breakage of the products is a regular problem in the shipping process and the logistics software solves this problem by connecting shippers with carriers that offer the right mixing and stacking strategies for a particular type of freight.
- Logistics software can instantly compare the audit of a freight invoice against the shipping contract and helps the business to save the money by protecting the business from paying for services that weren't rendered as promised.
The benefits of logistics management software cannot be overlooked. As logistics is the vital part of any business process, adapting this software ensures successful business.