NOTES

 

STRATEGY AND PLANNING

An organization's executives develop their future vision and determine their goals and objectives through the process of strategy and planning. It involves determining the order in which those objectives should be accomplished so that the organisation can realise its stated vision.

Though it can run longer, strategic planning typically represents mid- to long-term objectives with a life period of three to five years. This is distinct from business planning, which usually focuses on immediate, tactical objectives, including how a budget is allocated. A business plan may cover a period of time that lasts from a few months to several years.

A strategic plan is the end result of strategic planning. It frequently appears in a plan paper or other materials. Employees, clients, business partners, and investors may all readily discuss, comprehend, and implement these strategies.

Organizations periodically engage in strategic planning to take into account the impact of shifting market, industrial, legal, and regulatory situations. At that point, a strategic plan may be updated and amended to account for any strategic modifications.

INVENTORY MANAGEMENT

              First of all in general what is inventory management? The process of ordering, storing, using, and selling a company’s inventory is referred to as inventory management. This covers the storage and processing of such commodities as well as the management of raw materials, components, and completed goods.

Inventory management aids businesses in determining which merchandise to order when and in what quantities. Inventory is tracked from product acquisition to sale. In order to guarantee that there is always adequate inventory to fulfil client orders and proper warning of a shortfall, the technique recognises trends and reacts to them.

The basic goal of inventory management is to make it simple and effective for organisations to order, stock, store, and use inventory. Beside we always be aware of the things that have on hand, their quantity, and location if  manage the inventory

In terms of maintaining inventory, the main goal is to make sure that customer service standards can always be satisfied without endangering cash flow or running out of stock. Customers frequently stop being customers when they can’t buy what they need when they need it.Online ordering platforms and real inventory should be in sync for items to be available in the warehouse when customers add them to their carts. This shortens wait times and avoids scenarios in which the company has cancel orders owing to a shortage of inventory.

 

WAREHOUSE

For warehouse is a sizable structure used to store raw materials or produced items until they are distributed for sale besides A warehouse is a structure used to store commodities. Manufacturers, importers, exporters, wholesalers, transportation companies, customs, and others use warehouses.In these circumstances, a warehouse will enable for safe storage of commodities. Most businesses typically create goods in excess because they anticipate demand. Thus, a storage facility is required until clients and consumers begin placing orders.

A warehouse helps you keep better track of your goods and guarantees that consumers will receive their orders on time, both of which increase your revenues.Every warehouse moves things, stores them, keeps track of them, and sends them out regardless of the product. Our four primary types of equipment are storage, material handling, packing and shipping, and barcode equipment as a result of these four activities.

Typical warehouse activities include putting items away, moving items inside or between warehouses, and picking items for assembly, production, or shipment. Assembling items for sale or inventory may also be considered warehouse activities, but these are covered elsewhere.

 

 

PURCHASING

First of all we need to know what is purchasing. Purchasing is a subset of this broader responsibility and is focused on the more practical aspects of the process such as the transaction. It is centered on the nuts and bolts of the deal, rather than the strategic aims or long-term commercial relationships. Purchasing has the same meaning as procurement but it is a different activity. What is procurement? Procurement is the process of purchasing a service or a good, usually on a large scale and for commercial purposes. The role of procurement includes the process of identifying a business need, undertaking market analysis to find a supplier, preparing to purchase the required goods or services, negotiating with the chosen supplier and maintaining oversight of the transaction. Bringing such a transaction to fruition can be complex, and as such procurement teams are generally highly valued within a company. The purchasing process is focused on the tail end of the broader procurement process and is far more granular. There are several steps involved in the purchasing process. Firstly, the purchasing process is triggered by a formal request for a good or service, known as a requisition order.

At this point, the purchasing team will evaluate the suppliers and quotes provided for delivery of the goods or services. The team will then place a purchase order with the chosen supplier, which will include all the details of the purchase including quantity, price and delivery requirements.

The team will then need to ensure payment is arranged for the goods, and oversee the delivery and quality control checks. It will need to ensure all the proper paperwork is completed on delivery, including acknowledgement of receipt. On full completion of the transaction, the purchasing team will need to ensure the delivery has been appropriately documented for the company’s records and for future reference.

 

ORDER PROCESSING

What you know about order processing?

        Order processing is the workflow that takes place between a customer placing an order and the order getting delivered. This includes product picking and batch picking, sorting, packing, tracking, and shipping and handling. What is an example of order processing you know? There are an example of order processing is when a customer orders a pair of headphones from a particular brand. The order includes information such as the delivery location, order management options, and supply chain systems. This information allows both ends of the transaction to locate the order and order status at all times. In order processing, there are several stage that we need to handle. For the first is order placement. Next is order received. Then we have product picking and product picking. For the last is order shipping and order delivery. This also applies to multichannel order management, warehouse management processes, sales order processing, and the procurement process.

TRANSPORTATION

At the simplest basic level, transportation in the business world is just the process of transporting goods and resources from one location to another. This covers both the transfer of the final product to the consumer and the shipment of raw materials to the producer. Transport also involves moving components from assembly locations when they are put together.

 

The idea of physical movement is straightforward. Transport is required to transfer products to the following step of the manufacturing process or closer to the final consumer, depending of whether they are in the form of materials, components, assemblies, works in progress, finished items, or finished goods themselves. The transfer of goods up and down the value chain is a key transportation function. Since transportation consumes resources such as time, money, and the environment, it's crucial to move things only when doing so really increases their worth.

 

There are two Principles of transportation. The first one is Economies of scale It refers to the idea that as cargo size grows, the cost of transportation per unit of weight lowers. It is well known that the capacity of the transport vehicle determines how much cargo can be transported at once and how much each unit of transportation will cost. If the transport vehicle's capacity is lower, more trips will be required to carry a big quantity of products, which will raise the cost per unit of transportation. For instance, when it comes to bulk transportation, rail or sea transportation is less expensive than smaller capacity vehicles like motor or air. Because fixed costs for transferring products and resources, such as administrative costs, invoicing costs, and equipment costs, are distributed throughout the total weight of the cargo, there is a transportation economies of scale. This will helps in lowering the cost of the items being carried per unit.

 

Besides that, the second principles of transportation is Economy of distance. It mentions that as distance rises, the cost of transportation per unit of distance lowers. Due to the fact that rates or charges reduce with distance, the transportation economics of distance is also known as a tapering concept. The justification for economies of distance and size is similar. Longer distances make it possible to spread out fixed costs across a greater number of miles, which lowers the overall per mile cost. When researching transportation plans or operational procedures, these concepts should be taken into account. The goal is to increase the size of the cargo and the distance delivered while still providing the level of customer service that is expected.

 

 

 

INFORMATION TECHNOLOGY

 

You must be familiar with information technology (IT) before we discuss how it relates to logistics.

 

IT is a field of information technology that aims to make the handling of information easier, to translate from technical terminology into a more common language. These are systems that use computing power to classify, organize, and store data in a user-friendly manner so that they may be used intelligently by the user. In the business setting, all of this translates into better management and decision-making, and logistics operations are not much different. Information technology is one of the most important factors in the logistics sector when it comes to process optimization, lowering reaction times to partners and customers, and still saving. As a result, the primary IT software in this field will be covered in the following topic.

It is important to consider why it is important to discuss the application of information technology to logistics before continuing. The fact that a 9.6 trillion-dollar GDP is moved through global logistics is a compelling argument to consider it.

However, when measured against the logistics technology market, global investments total 17.4 billion dollars or 0.18% of all corporate spending worldwide. When we examine the shift in the market environment toward a more Internet of Things (IoT) connected consumer who encourages and demands more innovation, it is unfortunate on the one hand. On the other hand, a solid reason to promote the use of information technology in logistics is that it has advantages that have already been confirmed by businesses around the world and in many kinds of sizes.