Monthly Archives: February 2017

Let the Business Consultant Handle the Logistics

Manage the flow of your products with a business consultant

This article explains what logistics are and how business consulting can help.

When it comes to business logistics is everything. To get a better understanding of how a business depends on logistics, let’s take a look at the definition. Logistics can be defined as is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers. Just that definition alone shows its importance.

Some companies have a hard time keeping up with this. If this area of the business is neglected, it can cause many problems such as unnecessary expenses and a decrease in profit. Some companies will look at turning to a business consulting firm who has individuals who specialize in logistics. By doing this, they are ensuring that things are being done and in a timely manner.

A business consultant will handle the logistics scheduling. They will make sure the products are coming in at the right time. They will also be over the management portion of logistics. This could be things like inventory management, fleet management and making sure orders are filled. If there are global imports or exports, a consultant can oversee that also.

If a business owner or manager is not quite sure of how to handle these things on their own, seeking the help of an outside source is beneficial. Logistics is what makes the business world go round. It helps to have someone who knows what they are doing and that can get the job done when handling things such as this. If an owner hears the terms logistics, imports and exports, it may make their head spin due to the lack of knowledge in the department. It can seem overwhelming and feel like it is too much to handle.

Role of Dedicated Vehicles in Logistics

The importance of effective logistics management does not need any justification in today’s times. Top management in each organization very well understands the changes a slight variation in logistics operations can bring to the top-line and the bottom-line. With such an important role to play in business, logistics team also owns the responsibility to deliver the deliverables as required. This, in turn leads to generation of innovative ideas and their implementation in logistics field to improve the business results.

One of the typical and lesser known applications is that of reverse logistics. It stands for the operations related to reuse of products and materials. In normal course, logistics brings materials towards the customer. However, reverse logistics picks up the material from the final destination for delivery at a place normally sending the consignment. Reverse logistics plays a pivotal role in the organizations dealing with remanufacturing or reconditioning operations.

The basic raw material for remanufacturing operations lies in form of old aggregates across the entire span of end customers, or channel partners appointed by the organization to transact with customers. These old aggregates are received during the sale process which exchanges old aggregate available with customers by reconditioned aggregates. The customer, in addition to the old aggregate has to pay an additional price for the exchange.

Reconditioning cycle begins with the pick up of old aggregates from sources specified by the organization in its business process. As mentioned earlier, these old aggregates serve as the vital raw material for initiating the reconditioning process. Moreover, usually product range reconditioned by organizations contains more than one model. Generally, the reconditioning process goes on an apple for an apple model; which implies that the model of reconditioned product shall be same as that of old product received. Thus, in order to meet production requirement, sufficient number of old aggregates of each model must be available for reconditioning in addition to normal new components being used in production.

The amount of effort and expertise required to pick up material from different locations (and that too where you are dependent to a very great extent on different agencies which may not be in your complete control) and bring back to plant is very different to the process of despatch of aggregates from plant or warehouse based on orders. More so when this single step serves as the trigger to start the production line, which in turn can initiate despatches, and ultimately, the sale. Everything, beginning from follow up with the channel partner where the old aggregate is located for availability and packing, to lining up with transporter for arrangement of vehicle, proper documentation and finally despatch has to be well in tune of time. And then you have also to accommodate for unpredictable but practical hurdles that come in way of this operation.

In order to streamline the logistics operations, especially for organizations involved in reconditioning business, deployment of dedicated vehicles is of great help. These vehicles are entirely at disposal of organization. The vehicles may be deployed through other transporters on agreed upon terms, or can be owned by the organization itself. As the movement of vehicles is entirely controlled by the organization, these can be used as and when required. The use of modern technologies like GPS may be further used for better vehicle tracking and enhance the effectiveness of operation.

Dedicated vehicle operation has multi-faceted benefits in a long run. Some of these are listed below:
1. Despatch of finished aggregates, picking up of old aggregates, and even picking up of raw materials from suppliers may all be planned en-route thus helping not only reduce the transit time but also transportation cost.
2. In case the consignee is located in a state which requires state road permit for in-warding material, use of such vehicles results in reduction in the number of road permits being used.
3. Delivery and pick up of materials involving locations where it is not easy to find a suitable transporter may be effectively done by dedicated vehicles.
4. The chosen vehicles may be custom made as per specific requirements.
5. Drivers of dedicated vehicles may be chosen and trained as required for enabling smooth operations.
6. There is definitely an improved level of reliability on self controlled vehicles, which helps in planning the operations in a better way.

Logistics Vs Transportation

These days, transportation is the key element that can help a country moving with great pace. Without the availability of proper logistics or transportation medium a country’s economy can’t keep moving. Both these aspects are the prime wheels that can keep the economy on a great level. Distributing goods and other materials can’t be possible if a country’s logistics and transportation is not strong enough. If your country is going down with the storage of food stuffs like wheat then with the help of strong logistic availability you can import these materials form nearby countries.

Well, logistics and transportation, these two words are strongly connected with each other. Both goes hand on hand and without one there is no mean for the other! The thing is to look for is that whether or not one can survive exclusive of the other? This question can be answered by knowing the exact senses behind both of these unique services.

So, transportation means the allocation of goods and resources from the original destination to other point. There will be five modes for transportation such as:

  • With the help of animals
  • By Air Way
  • By Road
  • Through Railway services
  • Through Water Channels (Ship or Cruise service)

Sometime we are also using a combined medium of transportation to obtain fast and better results. The whole transportation depends on several processes such as packing of goods, managing it properly and lastly the transportation preparation. Maintaining a proper coordination throughout the whole process is simply impartial. But transportation may need a dual mode to deliver the materials when it’s all about maintaining a quick time frame. Here logistics will come into play.

Logistics is known as the practice of managing goods and supplies from the prime source to the user. Any country can take a look at how logistics is important for its development? Logistics is a necessity that needs to be added with every vital section of a country. Whether it’s a Government office, a health agency or a big business sector, logistics is an important aspect for each of them to keep things moving smoothly. However, business logistics is the most important one in this segment because it offers maple focus on speed and quantity. This is enough capable of delivering materials in the right frame of time and place. The cost is ideal and the proper combination of man power and other resources has made business logistics so popular.

Logistic Consultants Work

Business is all about making money unless of course it is a non-profit set out to free the world of injustice. One thing all business owners for profit or not have in common is that they are always on the lookout for cutting costs. This is truer now than ever before with the constant shifts in our economic culture. Business’s are no longer frivolous when it comes to who is offering services to them and at what costs. It is no longer a given that business owners will stick with old suppliers if new suppliers offer the same services at lower rates. More businesses turn to consultants to keep their businesses running efficiently.

One business affected by the economic down turn is the shipping industry. The competition is increasingly high to deliver high speed delivery at reasonable costs locally, nationally and globally. This in turn affects industries relying on these services for shipment of their products and for their product shipments. Logistic services firms are called in to do a complete supply chain audit for companies. With this a company can improve their receiving and distribution expenses and maintain or improve upon existing quality.

A supply chain audit starts by doing a freight analysis. This is done to determine where the business stands as of the moment the logistic service team walks in. Later on this will help provide a starting point to measure future results. The analysis will look into two major areas that can increase costs substantially which are the actual freight costs and fuel surcharges.

It is important that a supply chain audit is thorough. Logistic service firms will audit and evaluate shipment lanes, shipment volumes and discounts, rate and class categories, fuels surcharges and current pricing arrangements. It is important for the logistic team to get information on where the business is in comparison to industry averages to see how much room is open to negotiate better terms for their client. There are several tools that are used as benchmarks within the supply chain industry such as; air freight, small parcel, ground freight, international/global freight transportation, truckloads, ocean, rail, canal, warehousing or a combination of services.

A supply chain audit provides a logistic team with the information it needs to optimize logistic services within the company. The next step after knowing where issues exist, after negotiations and answers are given is to implement the plan and make the necessary change to the businesses logistic division to maximize mode optimization.