LOGI

STI
CANDSUPPLYCHAI
NMANAGMENT
UNI
T-4

InboundLogi
sticsismorerelat
edtoMateri
alManagementandPr ocurementwheret heincomingdeli
veryofrawmateri
als
andspareparts,f
rom thesuppl
ier
stothemanufact
ur i
ngpl
antiscall
edi nboundl
ogisti
cs.Itfocusesonthemov ementof
rawmat er
ial
swi t
hinandtothemanufactur
ingpl
ant.Thei
nter
acti
oni nvolvesasuppli
erorv endorandthefi
rm.

I
neasyter
ms,I
nboundLogi
sti
csisthepri
mar
yact
ivi
ty,
whichfocusesonpurchasingandschedul
i
ngt
hei
nfl
owofmat
eri
als,
machi
nesandf
inal
goods,f
rom suppl
ier
stot
hepr
oductionuni
t,warehouseorr
etailst
ore.

I
nboundl ogi
sti
csincludesallt
hoseacti
vi
ti
es,whicharenecessarytomakethegoodsavail
abl
eforoperat
ional
processes,
at
theti
meoft hei
rrequirement.I
tincl
udesmateri
alshandl
ing,t
ransport
,st
ockcont
rol
,andinspect
ionet
c.tofaci
li
tat
e,the
product
ionormar ketdist
ri
buti
on.

Basi
cpr
ocess
I
nit
iat
eswi t
hsourcingthelistofi
temsneededf ort
hemanuf act
uri
ngplantthenapurchaseorderi
scr eat
edagai
nstthoseit
emsf or
achoiceofthevendor.Oncet heselect
ionofsuppl
ier
,negoti
ati
ononpriceandthedeli
verydatei
sfixed;t
henextst
epi st
opr ogr
ess
wi
ththetranspor
tationofthoseitemstot hel
ocalwarehouseandcol
l
ectt hem.

Suppl
yChai
nManagerj
obdescr
ipt
ion
Wear elookingf
oranexperiencedandmot i
vatedSupplyChai
nManagert ojoinour
team.AsaSuppl yChai
nManager ,youwillberesponsi
bleforpl
anni
ng,implementi
ng
andmoni t
ori
ngourover
all
supplychainst
rategyandinordert
omaximizeeff
ici
encyand
product
ivi
ty.

Suppl
yChai
nManagerdut
iesandr
esponsi
bil
i
ties

 Planandimpl ementt heoveral

lsupplychai
nstrat
egy
 Coll
aboratewi thSal
es,Operati
ons,andCustomerServi
cet
eams 
 Deter
mi nekeysuppl ychainKPIs
 Suggestsolutionsforprocessimprovements
 I
dentif
ypr ocessbottl
eneckandi mplementsoluti
onsi
nati
melymanner
 Tr
ainandevaluat
eothers
 Pr
ovideconstr
ucti
vefeedback
 Workwithf i
nance,sales,andmanuf actur
ingteam t
o det
ermi
nebestv
endor
sand
di
str
ibut
ors
 Bui
ldandmaintai
ngoodr elat
ionshi
pswithvendor
s

Suppl
yChai
nManagerJobDut
ies

 Communi cat
ion
 Transport
ati
on
 Pl
anningandAnalysi
s
 I
nv ent
oryContr
ol
 Management

Regar
dlessoft hei
ndustr
y,asupplychainmanagerwil
lhavesi
mil
arjobdut
ies.Suppl
y
chai
nmanager sarepreparedf ort
heseduti
esthroughear
ningabachel
or'
sdegreein
l
ogist
ics,busi
nessadmini
strat
ionorsuppl
ychai
nmanagement .

Communi cation
Effecti
ve suppl ychai
n managementi si mpossi ble wit
houtpr opercommuni cation.
Suppl ychainmanager sneedt ohavet heabi l
ityt
opr ofessionall
ycommuni catewi thal l
typesofpeopl eviaphone,emai l,face-t
o-faceandv ideoconferencei nter
acti
ons.They
needt ohav etheabil
i
tyt onegot i
ateshi ppingpricesandt ransport ati
onar r
angement s
withcont ractedprovi
der s.Theymustmai ntai
ncl earandconsi st entcommuni cation
withsuppl iers,v
endors,andshi ppingcont actsthroughoutt hepr ocurementl if
ecycl e.
Theymustknow how t opr oact
ivelyengagesuppl i
ersini denti
fyingpot entialissues,
resoluti
ons and oppor tuniti
es.They mustknow how t o dev el op communi cation
soluti
onst hatcreat
ev al ue,decrease pr oblemsand pr eempt i
v elysol ve consistent
i
ssues.

Transportat
ion
Supplychai n manager s negoti
ate cont ract
s and r ates wit
h shi pping l i
nes,frei
ght
forwarders,
cust omshousebr okers,war ehousemanager sandr elatedthird-part
ylogical
servi
cepr oviders.Theymustensur et hatappr opriat eimportandexpor tcompl i
ance
proceduresar ef ollowedbyempl oyeesandcont ract edservicepr oviders.Theymust
executeindustryst andardpol i
ciesrelatedt oquali
ty, safety
,andpr ocessimpr ovement s.
Theyshoul dbef ami l
i
arwi thU. S.Cust omsandBor derProtectionpr actices,theU. S.
Export Admi nistration Regulations ( EAR) and t he I nt
ernationalTr af fi
ci n Arms
Regulati
ons( ITAR) .Suppl ychainmanager sensuret hatdesignat edfreightf or
warder s
andcust omshousebr okersfoll
owest abli
shedpr ocessesandpr ocedures.

Planni
ngandAnaly
sis
Supplychai
nmanagersdevel
opandmaintai
nvar
ioussuppl
ychai
nplansandstr
ategi
es.
Thismayi nvol
vecoordi
nati
ngandoverseei
ngmanufactur
ingoperat
ionsi
nor dert
o
forecastor ders and meetcust omerdemands.They mustopt i
mize operational
resources while executi
ng costr educti
ons and inventory cont
rol
s.They conduct
mont hlycapacit
yandper formanceanalysestoensurethatforecast
sandschedul esare
ali
gnedandi ntegrat
ed.Theyexecut edemandf l
ow verif
icati
onprocesses,engagei n
short-andlong-term pl
anningandconducti nv
entoryanalysesforwarehouseuti
lizati
on
andmanuf acturi
ngcoor dinat
ion.Suppl
ychainmanager smustbecomf ortabl
eusi ng
enterpri
ser esourceplanning( ERP)soluti
onsandwar ehousemanagementsy st ems
(WMS) .

Inv
ent oryCont rol
Inv
ent orycont rolisacommonj obdut yf orsuppl ychai nmanager swi t
h purchasing
manager  duties.Theysuppor tgrowt hobjectivest hrought hedev elopmentofconci se
met ri
csandr eporti
ngf unct i
ons.Theyar eresponsibl eforconduct i
ngr iskassessment s
ont hingslikepr oductper ishabil
ity,supplyt r
ends,demandf actorsandat -
ri
skpr oduct
mitigati
on.They r educe pr oductobsol escence t hrough inventoryr evi
ews and r e-
balancing ef fort
s. They must mai nt
ainat otalcost per specti
v e withal ean
manuf acturing mi ndset.They musti dent i
fy obsol escence drivers and effecti
v ely
communi catesol uti
onst ot hird-part
yl ogisti
cspr ov i
ders.Theygener atedail
y,weekl y
andmont hlyreportstopr ov i
dest akeholderswi t
hact i
onabledataandi nsi
ghtsregarding
currentstockl evel
sbycat egoryandl ocation.

Management
Supplychai n manager s promot et he desi
gn,dev el
opment ,and i mplement at
ion of
warehouse,di stributi
onandl ogisti
cssol uti
ons.Theymanagel aborcosts,personnel
producti
vit
y,inv entorylevel
s,dat aaccuracyandst ockingstrategies.Theymeasur eand
reportontheef fecti
venessofdepar tmentalact i
vi
tiesandoper ations.Theyoftencreate
andmai ntai
nsaf etywor kinstr
uct i
onsandst andardoper at
ingpr ocedures.Supplychain
manager s establ ish and adj ustwor k procedur es to meetwar ehouse demands,
producti
on schedul es,est abli
shed wor kfl
ows and OSHA saf et
y guidel
ines.They
i
mpl ementst rategies toi mpr ove serv i
ce qual i
ty,employ ee ef f
ici
ency,equipment
performanceandi nt
erdepartment alcommuni cati
on.

Fr
eightmanagement

 
Logisti
csencompasst hetechnol
ogy,exper
ience,humanresourcesandknowl
edgeuti
li
zedt
o
faci
li
tat
eeffect
ive,ef
fi
cientandexpediti
ouscoor di
nat
ionbetweencarr
ier
sandshipper
sand
ensuregoodsaredeli
veredonbudget
, andontime.
1.Pr oduct
ion –Thisdrivercanbemadev eryresponsiv ebybui l
dingfactori
esthathave
al otofexcesscapaci t
yandusef l
exi bl
emanuf actur
ingt echniquest oproduceawi de
rangeofi t
ems.Tobeev enmorer esponsive,acompanycoul ddot heirproduct
ionin
manysmal lerplantsthatarecloset omaj orgr oupsofcust omerssodel iv
erytimes
woul dbeshor ter
.Ifef
fi
ciencyisdesirabl
e, t
henacompanycanbui l
df act
ori
eswi t
hv ery
l
ittl
eexcesscapaci tyandhav ethosef actori
esopt imizedf orproducingal i
mi t
edrange
ofitems.Fur t
hereffi
ci
encycanal sobegai nedbycent r al
izi
ngpr oducti
oni nl
argecentral
plants.

2.Inventory– Responsi
venesscanbeenhancedbyst ocki
nghighlevelsofinvent
oryfor
a wide r ange ofproducts.Additi
onalr esponsi
veness can be gai
ned byst ocking
productsatmanyl ocat
ionsso ast o hav et heinvent
orycloset o customersand
avail
ablet othem immediatel
y.Economiesofscal eandcostsavingscanbegot tenby
stockinginventor
yinonlyaf ewcentrallocati
onssuchasr egi
onaldistri
buti
oncenters
(DCs).

3.Locat
ion/Warehousi
ng 
–Al ocati
ondeci
sionthatemphasi
zesresponsiv
enesswould
beonewher eacompanyest abl
ishesmanylocati
onsthatareclosetoi t
scustomer
base.Ef
fici
encycanbeachiev
edbyaggregat
ingitsinv
ent
orytoacentral
locati
on.

4.Tr ansportat
ion– Responsiv
enesscanbeachi evedbyat r
ansport
ationmodet hatis
fastand f lexi
ble such as t
rucks and ai r
planes.Effi
ciencycan be emphasi zed by
transporti
ng pr oduct
si nl arger batches and doi ng itl ess oft
en.The use of
transportat
ionmodessuchasshi p,rai
l
r oad,andpipel
inescanbev eryeffi
cient
.

5.Inf
ormation– 
Thepowerofthi
sdriv
ergrowsst
rongereachyearasthetechnol
ogy
forcol
lect
ingandshar
ingi
nfor
mationbecomesmorewidespread,easi
ert
ouse,and
l
essexpensi ve.Inf
ormation,muchl i
kemoney,i
sav eryusefulcommodi tybecausei
t
canbeappl i
eddi r
ectl
yt oenhancet heperf
ormanceoft heot herfoursupplychai
n
dri
vers.Highl ev
elsofresponsivenesscanbeachiev edwhencompani escoll
ectand
shareaccurateandtimelydatageneratedbyt
heoperationsoftheotherfourdr
iver
s.

TheI
mpor
tanceofSuppl
yChai
nManagement(
val
ue)
Iti
swellknownt
hatsuppl
ychainmanagementi
sanintegr
alpar
tofmostbusi
nessesandi
s
essent
ialt
ocompanysuccessandcust
omersat
isf
acti
on. 
BoostCust
omerSer
vice

 Cust
omer
sexpectt
hecor
rectpr
oductassor
tmentandquant
it
ytobedel
i
ver
ed.
 Cust
omer
sexpectpr
oduct
stobeav
ail
abl
eatt
her
ightl
ocat
ion.(
i.
e.,
cust
omersat
isf
act
ion
di
mini
shesi
fanaut
orepai
rshopdoesnothav
ethenecessar
ypar
tsi
nst
ockandcan’
tfi
x
y
ourcarf
oranext
radayort
wo)
.
 Ri
ghtDel
i
ver
yTi
me–Cust
omer
sexpectpr
oduct
stobedel
i
ver
edont
ime(
i.
e.,
cust
omer
sat
isf
act
iondi
mini
shesi
fpi
zzadel
i
ver
yist
wohour
slat
eorChr
ist
maspr
esent
sar
edel
i
ver
ed
onDecember26)
.
 Ri
ghtAf
terSal
eSuppor
t–Cust
omer
sexpectpr
oduct
stobeser
vicedqui
ckl
y.(
i.
e.,
cust
omer
sat
isf
act
iondi
mini
sheswhenahomef
urnacest
opsoper
ati
ngi
nthewi
nterandr
epai
rscan’
t
bemadef
orday
s)

ReduceOper
ati
ngCost
s

 Decr
easesPur
chasi
ngCost
 –Ret
ail
ersdependonsuppl
ychai
nst
oqui
ckl
ydel
i
verexpensi
ve
pr
oduct
stoav
oidhol
dingcost
lyi
nvent
ori
esi
nst
oresanyl
ongert
hannecessar
y.For
exampl
e,el
ect
roni
csst
oresr
equi
ref
astdel
i
ver
yof60”f
lat
-panel
plasmaHDTV’
stoav
oid
hi
ghi
nvent
orycost
s.
 Decr
easesPr
oduct
ionCost
 –Manuf
act
urer
sdependonsuppl
ychai
nst
orel
i
abl
ydel
i
ver
mat
eri
alst
oassembl
ypl
ant
stoav
oidmat
eri
alshor
tagest
hatwoul
dshut
downpr
oduct
ion.
Forexampl
e,anunexpect
edpar
tsshi
pmentdel
ayt
hatcausesanaut
oassembl
ypl
ant
shut
downcancost$20,
000permi
nut
eandmi
l
li
onsofdol
l
arsperdayi
nlostwages.
 Decr
easesTot
alSuppl
yChai
nCost
 –Manuf
act
urer
sandr
etai
l
ersdependonsuppl
ychai
n
manager
stodesi
gnnet
wor
kst
hatmeetcust
omerser
vicegoal
satt
hel
eastt
otal
cost
.
Ef
fi
cientsuppl
ychai
nsenabl
eaf
ir
mtobemor
ecompet
it
ivei
nthemar
ketpl
ace.For
exampl
e,Del
l
’sr
evol
uti
onar
ycomput
ersuppl
ychai
nappr
oachi
nvol
vedmaki
ngeach
comput
erbasedonaspeci
fi
ccust
omeror
der
,thenshi
ppi
ngt
hecomput
erdi
rect
lyt
othe
cust
omer
.Asar
esul
t,Del
lwasabl
etoav
oidhav
ingl
argecomput
eri
nvent
ori
essi
tt
ingi
n
war
ehousesandr
etai
lst
oreswhi
chsav
edmi
l
li
onsofdol
l
ars.Al
so,
Del
lav
oidedcar
ryi
ng
comput
eri
nvent
ori
est
hatcoul
dbecomet
echnol
ogi
cal
l
yobsol
eteascomput
ert
echnol
ogy
changedr
api
dly
.

I
mpr
oveFi
nanci
alPosi
ti
on

 I
ncr
easesPr
ofi
tLev
erage 
–Fi
rmsv
aluesuppl
ychai
nmanager
sbecauset
heyhel
pcont
rol
andr
educesuppl
ychai
ncost
s.Thi
scanr
esul
tindr
amat
ici
ncr
easesi
nfi
rm pr
ofi
ts.For
i
nst
ance,
U.S.consumer
seat2.
7bi
l
li
onpackagesofcer
eal
annual
l
y,sodecr
easi
ngU.
S.
cer
eal
suppl
ychai
ncost
sjustonecentpercer
eal
boxwoul
dresul
tin$13mi
l
li
ondol
l
ars
 sav
edi
ndust
ry-
wideas13bi
l
li
onboxesofcer
eal
flowedt
hrought
hei
mpr
ovedsuppl
ychai
n
ov
eraf
ivey
earper
iod.
 Decr
easesFi
xedAsset
s –Fi
rmsv
aluesuppl
ychai
nmanager
sbecauset
heydecr
easet
he
useofl
argef
ixedasset
ssuchaspl
ant
s,war
ehousesandt
ranspor
tat
ionv
ehi
cl
esi
nthe
suppl
ychai
n.I
fsuppl
ychai
nexper
tscanr
edesi
gnt
henet
wor
ktopr
oper
lyser
veU.
S.
cust
omer
sfr
om si
xwar
ehousesr
athert
hant
en,
thef
ir
m wi
l
lav
oidbui
l
dingf
ourv
ery
expensi
vebui
l
dings.
 I
ncr
easesCashFl
ow 
–Fi
rmsv
aluesuppl
ychai
nmanager
sbecauset
heyspeeduppr
oduct
f
lowst
ocust
omer
s.Forexampl
e,i
faf
ir
m canmakeanddel
i
verapr
oductt
oacust
omeri
n
10day
srat
hert
han70day
s,i
tcani
nvoi
cet
hecust
omer60day
ssooner
.

Lesserknown,ishowsuppl
ychainmanagemental
soplay
sacr i
ti
calr
olei
nsociet
y.SCM knowledge
andcapabili
ti
escanbeusedtosuppor
tmedicalmi
ssi
ons,conductdi
sast
err
eli
efoperat
ions,
and
handleotherty
pesofemergenci
es.

Whet herdeali
ngwithday-
to-daypr
oductfl
owsordeali
ngwi t
hanunex pectednatur
aldi
saster
,suppl
y
chainexpertsrol
lupthei
rsleevesandgetbusy
.Theydiagnoseprobl
ems, creat
ivel
yworkaround
disr
uptions,andfi
gureouthowt omoveessenti
alpr
oductstopeoplei
nneedasef fi
ci
ent
lyas
possible.

10Way
stoI
mproveYourSuppl
y
Chai
n 
1.Aut
omat
icPur
chasi
ng
Continuall
ymonitor
inginventorylev
elstakesupt oomucht i
me.NewerERPsy st
ems
withSupplyChainManagement( SCM)f uncti
onali
tyfeatureautomat edpur chasi
ng.Thi
s
meanst hattheERPsof t
war ecanbepr ogrammedt oautomat i
call
ypl aceor der
swith
vendorswheni nv
entorylevelsdropbelowacer t
ainlevel.Acrit
icalpar tofanysupply
chainstrat
egyisbeingabletopr eemptivel
ymaintaininventor
ylevels.Aut omatic
purchasingwil
lfr
eeupempl oyeestoconcentrateonot herimportantdut i
es.

2.St
andar
dize
Processstandar
dizati
oniscentr
altot
hesuccessofanysupplychai
nst
rat
egy.Havinga
standar
dizedERPsy stem wi
l
lincr
easeeffi
ciencywhi
l
esavingti
meandmoney.Anot her
benefi
tisthatemployeeswil
lshareastandardi
zedsyst
em oft
ools,
whi
chwil
lincr
ease
accur
acy
,encour
aget
eamwor
kandr
educemi
scommuni
cat
ion.

3.I
ncr
easeTr
anspar
ency
Waste,
mist
akesandev enfraudarepermanentsupplychainstr
ategypr oblemsthatcan
befi
xedwit
ht her i
ghtERPsy st
em.Oneoft hebiggestprobl
emsofi nventory
managementisr econci
lingthesoftwarenumberswi t
haphy si
cal i
nventorycount.Ther
e
ar
ealwaysproduct sorunitsthatarefor
gottenaboutorsimplydisappear.Incr
easing
i
nter
nalSCM transparencyiscriti
calt
oreducingunexplai
nedinventoryandf i
nancial
l
osses.

4.Gai
nDat
aInsi
ght
Decisi
onmaki ngforyoursupplychainstrat
egydependsonaccur ateandt i
mel ydata
andinformati
on.Havi
ngr eal-
ti
mer eportsavai
labl
eatal lti
meswillpr
ov i
devaluable
i
nsightint
othesupplychainhealthofy ourmanufacturingbusi
ness.ERPsof t
war e
al
lowsbot husersandmanagementt obeabl etoi
nst antl
yaccessinventor
y,purchasi
ng
andproducti
ondat af
orcr i
ti
caldecisi
on-makingpurposes.

5.Real
-Ti
meI
nvent
oryManagement
Tradit
ionalinvent
orymanagementi nvolvest heoveruseofspreadsheetsandhand
checkedl i
sts.Howev er,
 modernERPsof tware off
ersinv
entor
yf eat
uresthatprov
ider
eal
-t
imev isi
bil
ityofexactinvent
orylevels.Inadditiontothi
s,t
radit
ionali
nventor
y
managementsof twarehasl i
mitedscal abil
it
y,whilemodernERPsof twarehasunlimi
ted
fl
exibi
lit
ythatwi l
lmat chyourbusinesses’ gr
owt handuniqueneeds.

6.Moni
torVendorPer
for
mance
Asmoot hl yrunni
ngsupplychainsystem dependsonoutstandingvendorperformance.
Therefore,vendorper
for
manceneedst obemoni t
oredandratedthroughrobustmet r
ics
avai
lablethroughERPsy stems.Withaf ewclicksofamouse, managementcanr evi
ew
vendorcy cleti
mesander rorr
ates.Thisdataisinval
uabl
eduringvendorre-negoti
ati
ons.

7.Rai
seCostAwar
eness
Therear emanyuncontroll
ablef act
orsandv ar i
abl
eswithsupplychai
nmanagement .As
aresult,di
ffer
entmanager salongthesuppl ychainoft
enar eunawareofeachother
’s
expenses.Hav i
ngcentral
izedf i
nancialdatapinpoi
ntsexactl
ywhenandwher ethe
organizati
onspendsmoney .Thiswillencouragecostrel
atedcommuni cat
ionand
strat
egiesforconsol
idati
ngexpensesandst reaml
ini
ngprocesses.

8.I
mpr
oveRet
urnsManagement
Everysoli
dsuppl ychainst r
ategyneedsanef f
ici
entr et
urnsmanagement
system. 
Manuf acturer
s mustbeabl etoeffect
ivelyhandleretur
nssot heycanquickl
yre-
processorre-
manuf acturereturnedproductsorunits.Manymanuf act
ures
underst
andablyf ocusoncont i
nuall
ymov ingnewpr oductsoutthedoorandtherefor
e,
retur
nsoftenfailtogett heattenti
ontheydeser ve.Beingabletobettermanageretur
ns
willr
educewast eandi dentif
yconsi st
entproductpr oblem f
actors.

9.Just
-i
n-t
ime(
JIT)
ERPsy st
emsnat ur
all
ywor kwell wit
hbothjust-in-
timemanuf actur
ingandJITInventory
Managementt odecreaseinventorycost
sandi ncreaseinventor
yturnaround.Asa
resul
t,t
herewil
lbelessoverheadcost sandor derf ul
fi
llmentcommuni cat
ionmistakes.
Operateattheopti
mal i
nventorylevel
sandr educewar ehousecosts.

10.St
reaml
i
neAccount
ing
ERPsy stemsar eoftenint
egratedwithdif
f erentbusi nessareas,suchasHR,
managementandf i
nances.An ERPsy st
em  will reduceexcessivepaperworkandinv
oice
mix-
ups.I naddit
iont ot
his,ERPsystemsar eint egratedwithElect
ronicData
I
nterchange( EDI
)andEl ectr
onicFundsTr ansf ers( EFT),whichwil
ldrast
ical
lyr
educe
paymentpr ocessingadmi ni
str
ati
onandassoci atedwai tti
mes.
 UNI
T-5

Suppl
yChai
nCostAnal
ysi
s

Costt
oSer
veObj
ect
ives
Ourobj
ect
ivesf
orcostt
oser
veassi
gnment
s,subj
ectt
ocust
omerneed,
cani
ncl
ude:
 I
dent
if
yhi
ghandl
owcostt
oser
vepr
oduct
s.
 I
dent
if
yhi
ghandl
owcostt
oser
vecust
omer
s.
 Re-
ali
gndi
str
ibut
ionchannel
stomi
nimi
secostt
oser
ve.
 Re-
ali
gnser
vicepol
i
ciest
omaxi
misepr
ofi
ts.
 Est
abl
i
shongoi
ngr
epor
ti
ngofCostToSer
veut
il
isi
ngspeci
ali
st‘
cust
omermai
ntai
ned’
sof
twar
etool
s.
 Est
abl
i
sht
hecostt
oser
vet
ospeci
fi
ccust
omer
sorcust
omergr
oupst
osuppor
tPF/
FGP
negot
iat
ions(
seebel
ow)
.
 Assesst
hecostt
oser
vei
mpactofmer
ger
sandacqui
sit
ions.
 Assesst
hecostt
oser
vei
mpact
sofnewmar
ketent
ri
es.
 Assesst
hecostt
oser
vei
mpact
sofdi
str
ibut
ionnet
wor
kchanges

Thebenef
it
sofgl
obal
suppl
ychai
nmanagement
Inthemoder nglobalmar
ketpl
ace,
advancesi
ncommuni cati
onsandt r
ansport
ation
technologi
eshav el
edcustomerst
oexpectasteadyandregularsuppl
yofproductsingood
conditi
onatthelowestpossi
blepr
ice,
despi
tethelongdi
stancesmostproducts,commoditi
es
andf oodst
uffsareshi
pped

Gl
obal
Suppl
yChai
nIssues


Di
ff
erentpr
oductr
equi
rement
sindi
ff
erentmar
ket
s

 Languagebar
ri
ers

 Cr
oss-
cul
tur
alcommuni
cat
ioni
ssues

 Fl
uct
uat
ionsi
nthev
alueofmoney

 Needf
orcur
rencyhedgi
ng

 Poort
elecommuni
cat
ion

 Poort
ranspor
tat
ion

 Pr
obl
emswi
thgl
obal
suppl
i
ers

 Poorqual
i
ty–I
SO9000cer
ti
fi
cat
ionpr
ovi
dessomeassur
anceaboutsuppl
i
erqual
i
ty

 Useofchi
l
dlabor

 Fai
l
uret
opayt
hel
ocal
mini
mum wage

 Suppli
ermaycopyy
ourpr
oductdesi
gnsandsel
lunaut
hor
izedcopi
esofy
ourpr
oduct
(pi
racy)

Funct
ionsandoper
ati
onofe-
logi
sti
cs
 E-
LOGI
STI
C
E-logistici st he logisticalpr ocess thatgov erns ever
y t
hing related tot he onli
ne
mar ket place.Itisar elativelynovelconcept .Itisady nami csetofcommuni cati
on
comput i
ngandcol labor ativetechnologi
est hatt r
ansform keylogist
icalprocessest obe
cust omer -
cent
r i
c by shar ing data,knowl edge and information wi th supply chain
par t
ner s.Ithelpsincopi ngwi thnewlyarisinglogist
icschallenges.Thekeyel ementsof
e-logisticsaremul tichanneloper at
ion,crossbor derfunct
ionali
ty,war ehouselayoutand
i
nv ent ory,planning and f orecasti
ng and per f
ormance management .Success i n e-
l
ogi sticsdependsont hef ocusselectedf ortheonl i
neshop.Pr opercollaborati
on,
transpar entcommuni cationwi thcustomer sf ordeli
veryandr eturnsar et heotherkey
factorst hatdet er
mi nest hesuccessofe- l
ogi st
ic.

Pr
ocessi
nvol
vedi
ne-
logi
sti
cs:
-

1)
Met
hodofpay
ment

2)
Checkpr
oductav
ail
abi
l
ity

3)
Arr
angeshi
pment
s

4)
Insur
ance

5)Repl
eni
shment

6)
Cont
actwi
thcust
omer
s

7)
Ret
urns
 Thedi
ff
erencebet
weenl
ogi
sti
csande-
logi
sti
csar
easf
oll
ows:
-

 Logist
icsrefer stoplanni ng,executi
onoft r
ansportandhandl ingofgoods.E-
l
ogisti
csisbasi call
yaut omat i
ngt helogi
sti
cprocess.
 Logist
icspl ans,impl ement sand cont rol
st heef f
ici
ent,effecti
vef l
ow and
stor
ageofgoods,ser v ices,andr el
atedinf
ormationfrom thepoint-of
-ori
ginto
the point
-of-consumpt ion in ordert o meetcustomer s.E-logi
stics can be
defi
ned as t he application ofI nt
ernetbased technologies tot radit
ional
l
ogisti
cspr ocesses.

D/
Blogi
sti
cande-
logi
sti
c

Logist
ics:Planning,execut
ion,and cont r
oloft he pr
ocurement
,mov ement,and
stat
ioningofper sonnel
,materi
al,andotherresourcestoachiev
etheobject
ivesofa
campai gn,
plan,proj
ect,
orst
r at
egy.Itmaybedef i
nedasthe'managementofinvent
ory
i
nmot i
onandatr est.

E-l
ogistics:can be defined as t
he appl
i
cat
ion ofInter
netbased technologi
es t
o
tr
aditionallogi
sti
csprocessesorWebbasedappli
cati
onsandservi
cesdealingwitht
he
eff
icienttransport
,di
stri
buti
on,andst
orageofproduct
salongthesupplyanddemand
chain.

I
mpor
tanceofe-
logi
stc

E-
 logi
sti
cs 
meansappl yi
ngt heconceptof  
logi
sti
cs 
elect
roni
cal
l
yviatheint
erneti
n
order t o conduct t he busi ness el ectr
oni
cally
. Accordi
ng t o AMR
Research(Chal
lenger
,2001),
 E-
 l
ogi
sti
cs hel
pst oreduce costby10%.Accordi
ng t
o
Sahay,
B.S.(
2003) 
logi
sti
cs cont
ri
buteto10to12%ofGDP 

5benef
it
sofusi
nge-
logi
sti
cs
The f astdev el
opmentofdigital
isation drasti
call
ykeeps changi ng t
he needs and
requirementsofinf
ormat
ion.Today ,weexpectt ohav eaccesst oi
nformati
on,products
andser vicesanywher
eviacomput ers,webpor t
alsanddiff
erentkindsofdevices.This
createsbr andnew busi
nessoppor tunit
ies.Greencarr
ierFreightServi
ces’E-soluti
on
call
ede- carri
ercanhelpcentrali
sei nformationandmakey ourbusinessoper ati
ons
mor eef f
ici
ent.

1.Peaceofmi
ndandeasi
erpl
anni
ngofshi
pment
s
Bei
ngabl
etotrackyourcargoine-car
ri
erfr
om startt
ofinaldest
inat
ioni
sbenefi
cialf
or
anumberofr
easons.Havinginst
antaccesstoinfor
mationaboutyourshi
pmentmakes
i
teasi
erforyout oplanandmakeadeci si
onr egar
dingconnectingtr
anspor
tsand
del
i
ver
ies.Thatway,youcanmakeappropriat
ealter
nati
vearrangement
stomini
mise
i
nconv
eniencesand del
ays.Ther
eby,cargo t
racki
ng in e-
carr
ieral
so makesf
ora
smoot
hercooper
ati
onbetweenyouandotheractor
sinthesupplychai
n.

2.Sav
eti
mewi
thwebbooki
ngofy
ourt
ranspor
t
Webbookingi sacommonf eatur eofE- solut
ionsusedi nthetransportindustry.Ifyou
knowwhat ,whenandhowy ouwantt oshipyourgoods,y oucanj ustaswel lent ert
his
i
nfor
mat i
on y our
selfstrai
ghti ntot he web booki ng system.Ski pping the emai l
conv
ersati
onswi t
ht hecarr
ierwi llsav eyoual otoftimeandsecur edat aqual i
ty.Eit
her
you book yourshi pmentwi t
h e- carr
ierorwi thy ourown E- sol
uti
on,usi ng EDI
communicationwithustoaut omat icall
yt r
ansferthedataassoonasy ouent erit
.  

3.I
mpr
ovedwor
kfl
owwi
thadocumentmanagementsy
stem
Usinge-
carr
ierandit
sdocumentmanagementsystem whenhandli
ngyourshipment
off
ersthe advant
age ofa high l
evelofstr
uct
ure.By upl
oading t
he associat
ed
documentstoaspecifi
cshipment,theyar
eri
ghtathandwhenev erneededf orall
parti
esi
nvol
ved.

4.Di
rectaccesst
ost
ati
sti
csandr
epor
ts
Compani esof t
enneeddet ai
ledreportsregardingcol l
ecteddat aont heirshipment s.For
exampl e,reportsthatincludest at
isti
csofshi pmentv olumes,punct ualityoftranspor ts
andemi ssionsbydi f
fer
entmodesoft ransport
.Ouremi ssi
ont oolisi nthef or efront
withi
nt het ransportindustryand can pr ovidey ou wi t
h emi ssion figuresdown t o
shipmentl evel.Youcanwhenev ery ouwantdownl oademi ssi
onr eports.Iti
sv aluabl et o
beabl et ogener at
eandaccesst her eportsinst
ant l
ybyy our
selfinsteadofneedi ngt o
sendar equestt othecarriertogenerat ethem fory ou.E-carr
ierofferst hepossi bilit
yt o
createandsav eset upsforf ul
l
ycust omi sedreportst hatonlyincludet hest at
isticsy ou
areinterestedin.

5.I
nvent
oryov
erv
iewandopt
imi
sedor
dermanagement
Mar ketchangesbr ingbot hpossibi
li
ti
esandchal lengestothet abl
e.Therefore,str
ucture,
automat ionandov ervi
ewar ebecomi ngessent i
alaspectsofev erybusinesst okeepal l
operat i
onsont rackandel i
minateerrorsint heorderprocessing.Wesav etimei nyour
dai
lywor k.Theor dermanagementsy stem (OMS)i n e-carri
eri sfunctioning asa
pl
atf orm centr
ali
singal lofyourorder
sr eceivedfrom multi
plesources.Also,thesy st
em
l
etsy ouinser
t,moni torandsearchforor derstomakepl anningoftransportseasier.

E-
Suppl
yChai
nManagement
 –

E-Supplychai
nmanagementispracti
cedi
nmanufactur
ingindustr
ies.E-SCM i
nvol
ves
usinginter
nettocar
ryoutv
alueaddedact
ivi
ti
essothattheproductsproducedbythe
 manuf
act
urermeet
scust
omer
s’andr
esul
tingoodr
etur
noni
nvest
ment

E-
SupplyChai
nManagement–Expl
anat
ion,Act
ivi
ti
es,Pl
ayer
s,I
ssues,
Advant
ages
E-
suppl
ychai
nmanagement

 Manuf acturer
:Cr eatesproductsperspeci
fi
cat i
ons.
 Logisti
cs: Coordinatesmov ementofproducttocust omersandst
ocki
ngl
ocat
ions.
 Distr
ibutors:Di
st ri
butestheproducttousers/customers.
 Retail
ers:Locationst hatsel
lproduct
sfrom varioussuppl
ier
s.
 Customer s:End-user sofproduct.

Advant
agesofe-suppl
ychai
nmanagement
Companiesi
mplementingE-
SCM canenj
oyt
hef
oll
owi
ngadv
ant
ages:

1.I
timpr
ovesef
fi
ci
ency

2.I
treducesi
nvent
ory
3.I
treducescost

4.I
thel
pst
otakecompet
it
iveadv
ant
ageov
ercompet
it
ors.

5.I
tincr
easesabil
it
ytoimpl
ementjust-
in-
ti
medel
i
ver
y,i
ncr
easeson-
ti
medel
i
ver
ies,
whi
chenhancescust
omersat
isf
act
ion.

6.I
treducescy
clet
ime,
incr
easesr
evenue,
bypr
ovi
dingi
mpr
ovedcust
omerser
vice.

7.Iti mproves orderfulf

il
lment ,ordermanagement , 
decisi
on making, 
for
ecast
ing,
demandplanning,andwarehouse/ di
str
ibuti
onacti
vit
ies.
8.I
treducespaperwork,administr
ati
veov er
heads,i
nv ent
or ybui
ld-
up,andthenumberof
handsthathandlegoodsont heirwaytotheend-useri.e.
,thecustomer.

I
ssuesdeal
tbySuppl
yChai
nManagement
Suppl
ychai
nmanagementdeal
swi
ththr
eeissues:

1.Coor
dinat
ingalltheorderpr
ocessingactiv
iti
esthatori
ginat
eatthecust
omerl ev
el,
suchastheprocessofordergenerat
ion,or
deracceptance,ent
ryi
ntoor
derprocessi
ng
syst
em,pri
ori
ti
zati
on,pr
oducti
on,andmat er
ialfor
ecast
.

2.Mater
ialr
elat
edact
ivi
ti
essuchasschedul
i
ng,
product
ion,
dist
ri
but
ion,
ful
fi
ll
mentand
del
iv
eryand

3.Fi
nanci
alact
ivi
ti
essuchasi
nvoi
cing,
bil
l
ing,
fundt
ransf
erandaccount
ing.

Suppl
yChai
nManagementf
low
SCM f
lowscanbedi
vi
dedi
ntothr
eemai
nact
ivi
ti
es

1.Pr oductf l
ow,
2.I nformationfl
owand
3.Fi nancialfl
ow.
1. 
Pr oductFl ow:Theproductf l
owi ncludesthemov ementofgoodsfrom asuppl
iert
oa
customer ,andalsoanygoodsr eturnedbycust omers.
2. 
Infor mationf l
ow:Theinformationf l
owi nvolvestransmitt
ingor
der
sandupdatingthe
statusofdel i
very.
3. 
Financi alf l
ow:The financialf l
ow consist s ofcr edi
tterms,paymentschedul
es,
consi gnmentandt i
tl
eowner shiparrangement s.

Def
ini
ti
onofRev
erseLogi
sti
cs
Rev
erseLogi
sti
csconsi
stsofal
lact
ivi
ti
eswhi
char
eper
for
medaf
tert
hesal
e
 ofapr oduct.Itisaprocessofflowof  
goods 
ormateri
alwhichareunwant
ed
ordefecti
vet hroughthelogi
sti
cschainstothemanufactur
ersothati
tcanbe
recy
cled,reused, ordi
sposedofproperl
y.

Benef
it
sofRev
erseLogi
sti
cs
Companiesuserever
sel ogi
sti
cs t
oimplementproperpr
oductdi
sposal
,tor
etr
iev
epart
s,
ortoref
urbi
shusedpr oducts.Rever
selogist
icscanal
sohelpacompanyreducewast
e
andimprovethei
renvi
ronment alf
ootpr
int
.

 Reduceenv ir
onment alimpact:Reversel ogisti
csisanexcellentstrategyenv ir
onment all
y
-f
riendlycompani esshoul dempl oy.Rev er
sel ogist
icskeepsr eusabl emat eri
alsoutof
l
andf i
ll
sandal l
owsy ourcompanyt obei ncont r
olofsafel
ydisposi ngy ourproductsina
wayt hatr
educeshar mf ulwaste.
 Lowerbi l
ls:Byr e-collect
ingy ourproduct s,y oucanr educemat erialscosts.Reusi ng
piecesofy ouroldpr oductscanhel plowery ourov er
allmaterialcostandr educey our
env i
ronment alf
oot print.
 Bep repar
ed:Unf ortunately,
thereareinst ancesi nwhichcompani esmusti ssuear ecall
.
Ify ourcompanyal readyhasanef fi
cientr everselogi
sti
cssy st
em i npl ace,reaching
cust omersandcol l
ect i
ngrecalledproduct swillbemucheasi er

Gl
obal
logi
sti
cs

 
i
stheprocess—l
argel
yasciencebutalsoanar
t—ofmanagi
ngthefl
ow ofgoodsthr
ough
t
he 
suppl
ychai
n,f
rom t
hepl
acewheretheyar
emadetot
hepl
acewher
etheyar
econsumed

gl
obal
logi
sti
cs
Globall
ogist
icsconnectscri
ticalcomponent softhesuppl
ychainf
rom aproduct’
spointoforigint
oit
spointof
consumption—toensuretimelyandef f
icientdi
str
ibut
ionofgoodsfr
om pr
oducer stoconsumer s.I
n2016,
the
gl
obal v
olumeofmer chandiset r
adewas$16t ri
ll
i
on,accor
dingtot
he Worl
dTr adeOrganizat
ion.Thegl
obal
l
ogisti
csindustr
yfaci
li
tatesthisworldwideflowofgoods.

Global l
ogi sti
csisthepr ocess—l argelyasciencebutal soanart—ofmanagi ngt heflowofgoodst hrought he
supplychai n,f
rom theplacewher et heyaremadet ot heplacewheret heyar econsumed.I tmighti nv olv
e
shippingseedsandf ert
il
izertoagr ainfarmer,
sendinghar vest
edgraint oapr ocessingmi l
l,
truckingf l
ourtoan
i
ndust ri
al baker y
,sendingcont ainersf ul
lofl
oavesofbr eadtoadistr
ibutioncent er,
andthendel i
ver ingthem to
restaurants.Gl oball
ogisticsi
nv olvest hemovementofgoods—byt r
uck, trai
n,ship,orpl
ane—aswel las
preparation, packagingandst orageofgoodsi ndist
ribut i
oncenter
sandot herlogisti
csrealestatef acil
iti
es.

compani
esoper
atei
nthegl
obal
logi
sti
csi
ndust
ry
Globallogisti
csrequi
rescloseandi
ntri
cat
ecoll
aborat
ionbetweenahostofbusi nesspart
ners.Shippi
ngcompanies,
ai
rli
nes, r
ailr
oadsandt r
uckingcompani
esmovegoods.Gl obaldel
iv
eryser
v i
cesmanaget hemov ementofgoods.
Logist
icsreal est
atecompaniesownandoperatefaci
l
iti
esthatareessent
ialnodesfortr
ansport,managementand
storage,whil
eahostofser
v i
ceprovi
dersprovidet
hesoftware,secur
it
y,l
aborandbusinessintel
l
igencet hatkeepthe
gl
obal logi
sti
cssy
stem worki
ng.Prol
ogis,
al eadi
nggloball
ogisti
cscompany,provi
deseffi
cientl
ogist
icsr ealest
ate
soluti
onsaroundtheworl
d.Prol
ogis,t
heleadinggloball
ogi
sticscompany,pr
ovidesef
fici
entlogi
sti
csr eal est
ate
soluti
onsaroundtheworl
d.

Whatdr
ivesdemandf
ort
hegl
obal
logi
sti
csi
ndust
ry
Growthingloball
ogisti
csisfuel
edbythr
eef undament
altr
ends:i
ncreasingconsumption,ri
singe-
commer ce
andongoingreconfigur
ati
onofthesupplychaintomovegoodsmor equickl
yandef fi
cientl
y.Theendur
ing
str
engthofthesetrendsacrosstheworl
dmeansi sanindi
cat
ionthatgloball
ogist
icswi l
lconti
nuetopl
ayan
essent
ialr
oleinthewor l
deconomy .

component
soft
hegl
obal
logi
sti
cssy
stem
Time, costandqual i
tyarekeydr iversofsuccessi nglobal l
ogisti
cs.Asaconsequence, locati
onisaleading
consideration.Ot
herconsi derati
onsi ncl
udecostandav ail
abil
ityofsuitablelabor;pr
esenceandr el
iabi
li
tyofessent
ial
businesspar tner
s;geopoliti
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