Major logistics problems
Logistics process is one of the most expensive budget items for a lot of manufacturers and distributors. It is clear that the price of final products depends on logistics costs. The question of value formation becomes crucial for many manufacturers in times of crisis, since the competitors try to maintain their market positions as well. It can be reached through cost reduction across the whole process of product development. However, we would like to focus not only on the manufacturersâ€™ problems.
Nowadays, most companies are facing challenges related to optimization of logistics activities, increase in transparency of logistics processes, optimization of delivery scheduling, as well as efficient management of stock inventory and orders. As a rule, the biggest costs are hidden between supplier and consignee. The ultimate goal is to save time and money. We will try to answer the question of â€œhow to optimize managing deliveries throughout the supply chain and how logistics can produce indirect profitâ€.
Role of Information Technology in Logistics
Effective logistics management and implementation of information technology are not just a fad for modern companies; it became a must in today’s competitive environment. Until recently, the role of information technology in logistics has been increasingly underestimated. But these times have passed away.
Let’s critically look at the basic logistics operations. One of them is order management. Everybody knows that business performance depends on the level of client servicing, i.e. logistics. Any incorrect information and delays in order processing can completely hurt the normal business operation, as well as damage relationships with customers and partners.
Another burning issue is inventory management. Every senior manager knows that extra inventories drive up higher total costs. The question is how to provide a quality service level with a minimum amount of inventories?
Information technology helps businesses control the whole delivery process and monitors its main stages. Therefore, the companies do not have the need to store extra inventory.
Automation of order and Delivery Management
Modern electronic systems allow companies to effectively manage orders and deliveries. They also help them control inventory and reduce truck downtime during unloading and loading.
Last Mile Logistics criteria
The Last Mile Logistics(Calgary) is using its own well defined web system to manage all these problems as well as the cross-docking
Major logistics problems