Innovative technologies for managing the logistics company’s
This is known that any modern business can be successful only with the effective construction of logistics processes. Competent management of the supply chain includes the purchase of raw materials, production, storage, sales, transportation of goods. All of this will minimize costs and, consequently, will increase the company’s profit.
Logistics at the enterprise divided into internal and external depending on the directions of its activities. Internal logistics provides the solution of production issues directly at the firm. External logistics provides goods movement to the marketplace.
Functional types of logistics management
The main task of logistics is to organize the most rational production and sale of the company’s goods with minimal costs. Business logistics management can be divided into several types. Each type includes its tasks and processes, depending on the purpose.
- Purchase logistics. Responsible for supply management: finding suppliers of raw materials and materials for the further production of goods, establishing mutually beneficial and long-term relationships with suppliers.
- Production logistics. Solves problems related to ensuring high-quality and timely production of products, optimizing production costs and reducing costs. The main goal is to obtain high-quality products at the lowest cost.
- Distribution logistics. It includes the management of finished products and supplies, the creation and development of distribution channels. The tasks of the logistics manager are planning the implementation process, agreeing on batch sizes, type of packaging, shipping time and other points. This type is relevant both for industrial enterprises and intermediary companies.
- Warehouse Logistics. Warehouse management implies working with the company’s inventory: their accounting, proper storage, selection of warehouse facilities, packaging, labelling, shipping, etc. The main task of warehouse logistics managers is to maintain the optimal amount of product stocks in the warehouse.
- Transport logistics. The management is focused on choosing a suitable mode of transport for the carriage of goods and the method of transportation, choosing a carrier, building the optimal route of movement, organizing the delivery of goods at the right time and place, as well as monitoring the goods during transportation. The transport logistics manager is obliged to carry out a preliminary analysis of the cargo for its correct and safe transportation.
- Customs logistics. It is associated with the management of the transportation of goods across the border, the organization of its import, export and transit, further documentary support of these processes.
- Information logistics. The management process includes the collection, analysis and operational distribution of information within the enterprise and between partner companies. Information or document received in time can affect the result of the work, also as financial indicators.
- Financial logistics. It is planning and exercising control over cash that flows in the company.
- Reverse logistics. An important part of the supply chain management process is dealing with product returns. It includes organizing the movement of goods back to the warehouse for further repair, redistribution, reimbursement of value, recycling, or disposal.
How to reduce logistics costs. The cloud solutions
The introduction of modern technologies will significantly reduce management costs supply chain. These do not require complex hardware, expensive licensed software, own server, maintenance, and service. Furthermore, the entrepreneur gets the opportunity to choose ready-made solutions, store and process big data sets, manage their business remotely just by having a computer with Internet access, and concluding a contract for cloud services.
Today, there are many cloud-based solutions for integrated logistics management in the marketplace for both transport (TMS) and warehouse (WMS):
- WMS assumes full order management such as control over the receipt and shipment of goods, its sorting, inventory, picking, packing, moving, and accounting;
- TMS allows you to plan and build optimal routes, control everything stages of transportation and fuel consumption, track the movement of all goods on a single platform.
These logistics management tools allow all participants in the supply chain to receive information in real-time and have an idea of the current position cases. At the same time, it reduces the cost of maintaining a warehouse and transportation costs up to 30%.
Many entrepreneurs have already appreciated the GoRamp software, which allows them to process huge amounts of information on current logistics processes in the cloud. Modern modules TMS and Time Slots allow you to keep track of receipts goods, determine the availability and number of required items in the warehouse, manage transportation, receive quick advanced analytical reports. Try the cloud solution for your business for free!