We are going to learn about what is the function of logistics : There are different types of logistics system, let’s know one by one – Order Processing- Logistics initial process is to process customer orders. In order to provide efficient service to the customers, it is necessary to process the orders received from them in the least time. Process of receipt of order, record of order, file the order
And proper transportation of goods. When all these tasks are executed on time and properly, both the company and the customer are benefited. Any mistake made at this stage proves to be very expensive. For example, if a customer is sent a different type of product than the one, he has ordered, the customer will cancel his order and the company’s credibility will be shattered.
This creates time-utility in things. The main objective of the storage process is to keep the various items correctly, provide suitable space to store them, the following decisions regarding storage are important.
- How many warehouses does a firm need?
- Where should the warehouse be located?
- How should they be owned? That is, should they be bought or rented?
This is particularly the case for goods whose stock costs 30 to 40 percent, such as steel and motor vehicles. So it is no surprise that the concept of stock decision is becoming popular for many companies immediately.
The stock decision depends on the estimate of demand for goods. demand An accurate estimate of the stock is helpful in deciding the right quantity of stock and at the same time it makes it easier to monitor the cost.
This helps the firm to find out the cost of the stock and to plan the supply of goods at the right time to the consumer. This allows production to be maintained at a predefined level.
The following factors are important in determining the level of a stock –
1. Policy to Customer Service Level Firm.
2. Sales-forecasts quantify the veracity.
3. Feedback to the distribution system ie information of stock requirement Factory And making the goods available to consumers in the market accordingly How far the delivery system proves successful.
4. Cost of stock including expenditure on holding stock such as: storage
Includes cost of investment, investment capital and expenditure on damage to old goods, etc., and replenishment costs such as: manufacturing costs.
To achieve these objectives, it is necessary to be suitable, regular, reliable and appropriate from the right point of view of the cost of transport facilities, desired benefits and the service provided.
Data Processing or Management of information -Monitoring physical managers should always keep the stock information up-to-date. For example, in relation to stock information, current stocks, various sector-wise positions, future Promises and Buyer Strength etc. Requirements Similarly, information about the availability of various modes of transport, their cost and the requirement of these services in terms of a particular item before choosing a mode of transportation.
Information regarding storage, utilization of space, performance of the unit, etc. is required. An efficient management information system will be very useful for obtaining the above information. This will control costs, improve services and
The effect of the distribution will be known. It is difficult to estimate the cost incurred on physical distribution work, but if the right information is available, it can be analyzed and can be very saving.
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