Functions or Functions activities each of which falls under the business’s logistical umbrella, include customer service, forecasting demand and documentation flow, interplant moves, inventory management and order processing, packaging parts and support services as well as warehouse and plant site selection, production schedule buying, returned items, salvage scrap disposal, traffic management and warehouse and distribution center management.
All of these activities need to be planned and implemented in concert with each other. It may be necessary for the logistics manager to pay more for one component of the service to save on another. In contrast to their rivals, air freight companies are more cautious about cargo, so they can save money on packaging. Furthermore, items will be shipped more quickly and payments will be made faster.
Customer Service Activities
Customer service is a variety of tasks to keep current customers happy. One example is software companies that permit customers to call them to discuss issues they are having with their software. Repairing equipment in the field and providing training to new users are additional ways to provide customer services.
The term user-friendly can be employ by companies who want to establish a reputation as an easy business partner to do business with. Firms constantly assess the level of customer service that they and offer their rivals. They could use equipment to track how often the customer service phone rings before it is answer. This could enable them to track the percentage of needed repair parts they are able to offer within a specified time frame.
Forecasting Demand Activities
This process is conducted in collaboration with the company’s marketing department and serves to gain a better understanding of the logistics needs for the upcoming time frame. This includes both the delivery of goods to customers as well as the delivery of raw materials or parts to be assemble. Since the logistics team is responsible for processing orders the logistics staff also has data on what customers are actually purchasing. This information is crucial to other staff members who are responsible for planning and scheduling production.
Documentation Flow Activities
The documentation that is part of the movement of physical goods is regard as the flow of documentation. An invoice of delivery represents the legal contract that is sign between shipper and the carrier. An itemized packing list will be insert in every carton of items and signed by the individual who packs it. The consignee confirms the freight count on the waybill of the carrier and the entries on each container’s packing list on receipt. International shipping requires a variety of documents.
Interplant Movements
When producing, the company moves its products between its different manufacturing facilities. A major auto manufacturer may have a number of thousand suppliers supplying components to factories, which then assemble the parts to be use on 20 production lines. The flow of materials must be monitor and modified to accommodate changing requirements.
Inventories Activities
The stocks of material or goods are inventories. They are usually located in locations where there is a shift in the amount and rate of movement. An grain elevator may receive local farmers’ grain at a rate of three or two truckloads per day during harvest. It will then hold the grain until it’s delivery in the form of several railcars per week for a period of six months. The inventories represent an investment owners hope to sell.
Processing Orders
The process of processing orders begins with acceptance of an order from the customer. It can be receive from a salesperson call in, or delivery by post. Buyers and sellers who are regular are usually connect electronically. When the inventories of buyers get low the electronic purchase order is create. It is then sent to the seller’s computers, who will decide if the goods are available. The seller will notify the buyer, via electronic means, that the order will be fulfill and ship on a particular date.
Packaging Activities
There are two purposes serve by packaging it promotes the product as well as protecting the product. This promotion is intend to make the item stand out on the store display and shout, Take me home to the person walking by. The function of protection is to shield the product and prevent the product from causing damage to surrounding products.
Service And Parts Support
Anything that is sold has to be maintained. For instance, automakers often have parts available for all automobile models older than 10 years. Customers who purchase capital equipment must be assured that the purchase will remain in good working order for many years. The prompt delivery of spare parts is essential as well. Farm machinery manufacturers sometimes charter small planes to transport necessary parts to combines which are degrade in the wheat fields.
Warehouse Along With Warehouse Site Choice
Firms are often require to locate the ideal location to build a new location. This decision usually follows an analysis and design, in which a decision is made on how many facilities the business is required to operate. A business that must supply repair parts on a regular basis within the country might be able to access all markets by air from one warehouse, if it was willing to utilize air-express services.
Production Scheduling
Production scheduling is manage by the firm’s employees with the aid of logistics personnel. Planned to ensure that there is a balance between production needs and the capacity of the facility and the availability of inputs. Materials and components that are coming in need to be plan to be incorporate into the manufacturing process. The process of production will be schedule in order to meet existing orders and to plan for future ones.
Purchasing Activities
The other aspect closely related to scheduling production is the purchase of materials. This is because a lot of the equipment required to make production work must be purchase from third party vendors. To ensure that products bought are delivery on time, logistics staff advise transport services how to operate.
Returned Items Activities
There are numerous types of products that have been return. Certain are the subject of recalls of products, which means that a safety issue or risk has been identify. These items are remove from the shelves and retailers and customers attempt returning them back to their manufacturer. This is a type of reverse distribution. It involves items being move towards the reverse to their normal flow. In the end, the manufacturer has to fix the issue, or offer an alternative product or refund the money.