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Learning objectives;
On the basic level, logistics management is all about strategy. Supply chains are
composed variety of complicated moving part, and when one of them starts to
fail, the entire chain suffers for it. logistics management attempts to lay out a
thorough plan that avoids any such errors and keeps things moving accurately
and quickly.
Logistics Software And Managing 3PL
Traditionally, businesses have been reluctant to share too much information with
third party providers. This something that may soon have to change, as customer
demands become more complex and technology collates more data.
While some enterprise have been reluctant to jump on the 3PL bandwagon, third
party logistics are quickly becoming integral to warehousing portions of supply
chain.
Choosing a solution
As we mentioned earlier the variety of logistics management system and the
unique needs of businesses make decision more difficult. However this also
increases the important of choosing the right logistics management.
DEFINING YOUR PROCUREMENT REQUIREMENTS
-Before dive headfirst into the sea of logistics management software, it needs to
know what issue a new solution should solve . Purchasing a brand new system
without knowing what you need to fix is a greet way to throw time and money
out of the window.
Warehouse Management System
is a software application that helps control and manage the day-to-day operations
in a warehouse. It guides inventory receiving, put-away, picking, shipping, and
inventory replenishment.
There are different types of WMS, including standalone systems, ERP modules, and
cloud-based systems. Standalone WMS is an on-premises system that needs to be
integrated with other business management software.
Cloud Based Warehouse Management
system
based WMS is a web-based software that offers flexibility, scalability, and
automatic software updates.
ERP modules integrate WMS functionality into an ERP solution, providing real-
time data and eliminating the need for non-real-time interfaces.
The benefits of an integrated WMS and ERP system include reduced
fulfillment time, increased inventory accuracy, improved customer service,
greater space utilization, increased warehouse productivity, and reduced
labor costs.
When deciding which WMS system to implement, it's important to consider
the different tiers of WMS functionality
Tier 3 is the basic level, offering automated data collection and simple
inventory management.
Tier 2 is intermediate, with directed pick and put-away logic and more
advanced features.
Tier 1 is advanced and suitable for large and complex fulfillment centers,
interacting with automated material handling equipment.
How to choose the Right Warehouse
Management System (WMS)?
Choosing the right Warehouse Management System (WMS) is crucial for efficient
operations. Remember that choosing the right WMS is a significant decision, and
it’s essential to involve key stakeholders from your organization in the selection
process to ensure that the chosen system aligns with your business goals and
objectives. Here are steps to consider:
Assess Your Needs: Understand your specific requirements, such as inventory
size, product types, order volume, and any unique processes.
Budget: Determine your budget for a WMS, considering not only the upfront
costs but also ongoing maintenance and operational expenses.
Implementation Plan: Discuss the implementation process with the vendor.
Ensure there is a clear plan and timeline.
Training: Plan for user training to ensure your staff can effectively use the
system.
Return of Investment and Cost Savings: Calculate the potential return on
investment (ROI) and cost savings that the WMS can bring to your business.
Technology: Assess the technology the WMS uses. Ensure it’s up-to-date and
compatible with your hardware and software.
Security: Data security is critical. Ensure the WMS meets industry standards and
provides adequate security measures
Planning -TMS helps a company choose the optimal carrier and delivery
method based on cost, efficiency and distance, and optimize multi-part
shipping routes. In addition to global trade management capabilities, an
effective TMS can provide insight into every step of the supply chain and
provide information on trade, tariffs and delays caused by customs and other
trade restrictions.
Execution- Transportation management systems have a wide range of
execution features, but they might involve coordinating with carriers to
match loads, documenting and monitoring shipments, and aiding with freight
invoicing and payment. The provision of track and trace services by certain
cutting-edge TMS solutions enables real-time information sharing between
carriers, distributors, warehouses, and clients. Such sophisticated systems
may be equipped to manage complicated
international logistics, including the provision of appropriate import and export
documents and the assurance of trade-compliant shipments.
Optimization- The capacity to assess and monitor performance through
reports, dashboards, analytics, and transportation intelligence is often one of
the TMS optimization capabilities.