About Logistics in a supply chain: A macro view point encompassing e-commerce

About Logistics: A macro view point

Abstract

 

 Logistical   operational   responsibilities   include   delivery of goods between suppliers, transporters 
and company users /customers.  For instance, we can say that in the apparel supply chain of Bangladesh, 
we usually see that inbound goods come to manufacturing facility  by the transporters and warehouse assistants
 receive the cargo, which is provided according to suitable lot size using suitable containers 
by sea or by air according to urgency of manufacturing needs to fulfill customer requests. Finished
 goods are loaded to containers per customer request in suitable lot sizes, so that buyer can collect and market
 the goods in an organized and suitable way.A macro view of logistics Logistical management function may entail
 some more steps, i.e., locating potential suppliers, determining their accessibility in terms of business production,
 and forming relationships. If the business operation is size-ably voluminous enough to outsource online 
operation logistics, in that case the business has to sync their platform with the third party partner.
As we know, in a supply chain management,  logistics and transportation are intertwined. For  e-commerce companies,
 chat-bots  can be employed to avail customers with fundamental  queries such as tracking a shipment.

Keywords: Supply  chain management(SCM), Logistics, suppliers, transporters etc.

Introduction:

The term logistics refers to providing right amount of material in the right condition, at the right place, at the right time, in the right position, in the right sequence, for the right cost, by using the right methods. In other words, the entire process of transferring products from producer to consumer including storage of raw material and finished goods, transport, transshipment and associated information. Logistics is a comparatively new term used in Supply Chain Management used to describe old management practices like planning, implementing, efficient and effective controlling of flow and storage of raw material and finished goods, services for the purpose of conforming to customer requirements. Modern supply chain’s three wings are Supply Management, Demand Management, and Logistics Management.

Logistical Operations:

Logistical operations responsibilities include (a) delivery of goods between suppliers, transporters and company users /customers;(b) supply of inputs to manufacturing operations and determine the economic load size;(C)ensure labeling, cleaning, sorting of goods according to purchase specifications;(d)organize transportation in compliance with requirements/regulations;(e)tracking the transit of products;(e)organize loading, unloading of goods, delivery and unpacking.

Warehouse
A warehouse

Apparel supply chain logistic operations:

 

For instance, we can say that in the apparel supply chain of Bangladesh, we usually see that inbound goods come to manufacturing facility by the transporters and warehouse assistants receive the cargo, which is provided according to suitable lot size using suitable containers by sea or by air according to urgency of manufacturing needs to fulfill customer requests. In the warehouse, need to arrange the raw materials, so that factory people can easily locate the raw materials and use them for manufacturing and reporting purpose. Finished goods are loaded to containers per customer request in suitable lot sizes, so that buyer can collect and market the goods in an organized and suitable way.

 

Global logistics management

With international populations on the rise, Price waterhouse Coopers expects ecumenical trade in goods and accommodations to increment to $27 trillion by 2030. As ecumenical trade grows, so will the requirement for efficacious logistics management — ascertaining the supply of goods and accommodations match the demand. [1] With international populations on the higher level, expectation are like trading in goods and accommodations would increase.

A macro view of logistics

 

Logistical management function may entail some more steps, i.e., locating potential suppliers, determining their accessibility in terms of business production, and forming relationships. This way, it is related with e-commerce. As a retailer, most e-commerce platforms are having inventory management software, and a completed payment would automatically adjust your inventory. After get the notification, it is time to ship the product. If a business is running their website from their abode or a separate office and store inventory there, all they have to do that package the product and send it to the buyer. And if the business operation is sizably voluminous enough to outsource online operation logistics, in that case the business has to sync their platform with the third party partner. Inventory management solutions within the ecommerce platform give us overtness into how much of a given product you have left. These implements give you authentic-time insight into your products so you are never blind on customer orders.

Logistical predictions:

As we know, in a supply chain management, logistics and transportation are intertwined. Supply Chains are using modes of transportation such as air, package carrier, truck, rail, water, pipeline and inter-modal etc. But some logistical endeavors happening especially in the e-commerce area. And some are still predictions. They are as follows:
Googles fiber optic debuted in Kansas City, Uber launched its no driver accommodation in Pittsburgh, and 7-11 launched its first drone distribution in Reno, NV. The astronomical scale and inevitably ineluctable involution of drone distribution in a dense urban setting denotes that it makes sense to do pilots in more minuscule cities.[2]
The recent UPS acquisition of truck brokerage firm Freightex and logistics company Coyote are calculated to radically reduce the lost capital of trucks at less than capacity, and to capitalize on loading/offloading opportunities en route.In 2017, companies like Coyote have proprietary software that eliminates those old inefficiencies within the fleet.These acquisitions mean the logistics industry can expect to visually perceive substantial gains in ground convey. [2]
It has been popular getting a surprise package of your favorite consumer items, spending less time shopping, preserving on luxury goods like makeup or apparel. While subscription boxes would not supersede traditional a-la-carte ecommerce shopping, their growing popularity will have a positive impact on supply chains. Subscription boxes can reduce these bellicose peaks and troughs, providing more predictability and fewer out-of-stocks and backlogs along with demand-spike headaches.[2]
As the lines between e-commerce and retail blur, omni-channel fulfillment will perpetuate expanding. Businesses have realized that customers prefer to have the cult of buying online or in store and this will play out in a variety of ways. As B2C businesses learn more about customers purchase habits, this will streamline everything from marketing budgets to warehouse labor force participation.[2]
For e-commerce companies, chat bots can be employed to avail customers with fundamental queries such as tracking a shipment.AI is already in utilization by many companies to distribute optimized customer experiences.[2]
As we ken, in a supply chain management, logistics and transportation are intertwined. In 2017, companies like Coyote have proprietary software that eliminates those old inefficiencies within the fleet. These acquisitions mean the logistics industry can expect to visually perceive substantial gains in ground convey.

Conclusion:

Although basically logistics in supply chain management inform us about the event of sending the produced goods and services to the consumer, with the rise of e-commerce and computer aided business make it easy for the consumer to get the necessary things. Not only small companies, big companies are also taking help of e-commerce related technologies.

 

References/Bibliography:
1.Business Degree.“Global logistics development”. https://wpcarey.asu.edu/undergraduate-degrees/global-logistics-management. Pages 1
2.Rheude, Jake.(2017). “5 Ecommerce Logistics Predictions for 2017”. http://multichannelmerchant.com/blog/5-predictions-ecommerce-logistics-2017/.  Pages 1

Comments 2

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  • i was confused about the difference between logistics and supply chain and now iam clear because of this awesome blog

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