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Strategizing and conveying value of logistics

The so-called logistics, in order to achieve the flow of goods, must be transported through the completion of the changes in the space of goods. It can be said that transportation is the core of logistics, and the capacity of transportation management directly reflects the level of logistics, so it is the most important part of logistics management.
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When the customer orders, the logistics will arrange the transport resources (vehicles, ships, containers, wagons, etc.) according to the order, serve the customers and complete the order. Everything is right. But the actual situation is, some orders can not be successfully completed, will delay or even modify orders to transport, what is the problem? Let's take automobile transportation as an example.
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1. Lack of vehicles

After the order, the individual carrier may have various reasons, such as the order too late not enough time about the car, the vehicle in the customer's unloading is too long to return, the original arrangement of a few car sanitation can not reach the standard to return to... In short, there are "objective reasons" that can not arrange enough vehicles to pick up the goods in warehouse, delay the order or modify the quantity, but do not assess his performance. once this situation spread, it shows that the control of transportation has been very weak, the shipper does not want to be examined, the more we want to play the power of assessment, not only to examine the carrier, but also to examine the internal transport team, as well as the order related personnel of the order and order.
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In the previous section "order plan" module, we refer to the concept of "effective order". The customer / sales order within the specified time is valid through the validation (such as payment, credit lock, approval, etc.). The order management department has to complete the effective order within the specified time. Operation (such as system entry, printing documents, etc.) and transfer to the transport management department, the transport management department set up a good shipping plan within the prescribed time to the carrier, the carrier arranges enough vehicles to complete all the orders received within the prescribed time, each link should clearly define and assess their respective responsibilities. For example, the assessment of sales is the rate of delivery of effective orders within a single time, and an emergency order is taken to assess them over a single time. The order and transport department should assess the level of the corresponding order plan and transportation plan in the corresponding time; to the carrier, the contract is timely to the warehouse according to the contract. The requirements for timely and intact delivery are assessed. only when every link is put in place, can it avoid shirking responsibility.
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2. Insufficient goods

In the normal case, the transportation department will consider the number of each variety, and make the inventory state as the normal product into the shipping plan, and remain vigilant about the quantity that can be released before the delivery of the vehicle, and the number of work to be offline. There is no shortage of goods needed for shipment. For example, a customer made an order of just a 12.5 meter whole car, but when making a transportation plan, it was found that there was a batch of 500 boxes that had the quality risk being hold, so the 12.5 meter car was not loaded and changed to 9.6 meters. So there was a mismatch and the change of the single (suitable for the 9.6 meter car) or the whole single. Delayed release (12.5 m order and customer communication after unified release of quality release). This will reduce the level of customer service, in addition to the fine management of logistics, it also needs the joint efforts of the whole supply chain, such as the completion of quality inspection in advance to reduce the quality of qualified products suddenly hold and so on.
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3, model mismatch
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Usually, when the transportation department makes the shipping plan, it will refer to each carrier's model size, and then arrange the number, volume and weight of the order. In reality, even if it is strictly implemented, there will be no match between the model and the order, such as the non standard of the model. Matching, the same is 9.6 meters high hurdles, some of the railings are more curved, both sides of the loading of a few layers less than the middle; some of the railings between the cars have columns, these columns occupied the compartment space, leading to the column corresponding to the corresponding row of each layer to less one box... The customer ordered 3000 boxes of vehicle orders, because the models were not standard, resulting in 30 boxes remaining and could not be loaded. For this situation, it is best not to find the customer to modify the order into 2970 cases, the customer assessment is OK, the transport also according to the standard vehicle to make plans, the check is the carrier, the 30 cases are not completed in time, and they are required to improve the vehicle standardization.

Transportation execution should be efficient, the first is the accuracy of the plan. If there are a lot of changes in the plan and order, not only the transportation execution force should be discounted, but many subsequent management will be affected. We should reduce the number of changes and strengthen the planning so that we can get away from the busy chaos and become the orderly delivery value.
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Source: non red logistics, JitLogistics

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