Logistics Supply Chain Analysis

It is physical movement of goods. Transportation has an important role in the supply chain and it can amount to high costs. The logistic managers need to choose the most effective combination of transport to improve value to the company and customers. The forms of transportation are: Pipeline, sea, railway, air, etc.

2-Warehousing and storage:

Warehousing are the activities of storing, receiving shipping materials for production and distribution centers. It also includes managing human resources.

3-Material/Product Handling:

Allocation and movements of product and materials and its distribution within the warehouse. This includes order procedures, picking up and shipment areas on warehouse. The logistic manager needs to coordinate the type

As for the sellers time means the order management process and Bill to Cash process.

The factors that affect time are the degree in which logistics control the elements of lead time. Seller need to control processes of order picking, shipment of orders and order processing. Consequently, Logistics manager needs to control consistence across the order cycle especially length and duration. If that is not controlled it will impact inventory levels for the buyers.

The sellers need to work on improvements of cost centers that will result in the cost effective savings for the company and give the highest customer service

Therefore, time is very important for customer service. b dependability:

From buyers prospective dependability and trust is important because it a minimize inventory levels considering the lead time is stable. The buyers that can rely on orders arriving at stable time could adjust their inventory based on those times and reduce or eliminate their safety stock quantity.

As for sellers dependability it is important as they can rely on buyers to run logistic department with stable lead times.

Cycle time directly affects buyers’ inventory level and stock out costs. If lead time is stable will reduce uncertainty of buyers. In the other hand if cycle time is unstable it will create delays and loss of sales for buyers in which will increase costs.

As for sellers if they can provide stable and reliable lead time to buyers it will create a differentiation in product and create competitive advantage against other competitors. In the other hand, if cycle time is unstable and create extra costs for buyers. The sellers might receive claims due to buyer’s delays and loss of revenue. That is why dependability is so important and both buyers and sellers need to rely on stable cycle