LOGISTICAL PROCESS

(OPERATION 7 PROCESSES)

LAKSHYA JINDAL
INTRODUCTION

Logistics is generally the detailed organization and implementation of a complex

operation. In a general sense business logistics is the management of the flow of things
between the point of origin (starting) and the point of consumption (final consumer who
will consume) to meet the requirements of customers or corporations. The resources
managed in logistics of cell phone business as a distributor starts the process from
information flow, materialshandling, production, packaging, inventory, transportation,
warehousing, and often security etc. logistics is the process of planning, implementing
and controlling procedures for the efficient and effective transportation and storage of
goods including services and related information from the point. Logistic flows can also
be called as “activity chains” or “supply chains”. In process, logistics continues to
become more complicated because of the increased demand for complex information
and communication control systems of today's global business environment. An
efficient logistics process within an organization will apply tools to analyze and
visualize the complexities involved in production. These tools should integrate
information, inventory, production, warehousing, personnel, materials, packaging and
the secure delivery of the final products.

Business logistics : In business, logistics may have either :

1) Internal focus (inbound logistics) or an 2) external focus (outbound logistics),

covering the flow and storage of materials from point of origin to point of
consumption . The main functions of a qualified logistician include inventory
management, purchasing, transportation, warehousing, consultation, and the
organizing and planning of these activities. Logisticians combine professional
knowledge of each of these functions to coordinate resources in an organization.

What is logistical process?

 logistical process is the best way to find the best option or solution for manufacturing
and distributing goods by considering how the market uses these products. As part of
this process, a company also should consider the factors that affect production quality
and efficient transportation between hubs. This includes production costs, personnel,
the time and cost required for deconsolidation, and warehousing possibilities,
including cost and space. As part of this process, a company also should consider the
factors that affect production quality and efficient transportation between hubs.

NODES OF DISTRIBUTION NETWORK AS A BUSINESS ORGANTISATION OF

CELL PHONES INLUDES VARIOUS STEPS:

1) WHERE CELL PHONES ARE MANUFACTURED

2) DEPOSIT OF PRODUCED CELL PHONES AT WAREHOUSE FOR STORING

MERCHANDISE

3) DISTRIBUTIONS FOR ORDER PROCESSING AND ORDER FULLFILMENT

AND FOR RECEIVING RETURN FROM OUR RETAILERS.

4) DELIVERIES SCHEDULE SYSTEM .

LOGISTICAL PROCESS STEPS :

1) HANDLING AND ORDER PROCESSING

2) PACKAGING

3) WAREHOUS MANAGEMENT AND CONTROL

4) INVENTORY MANAGEMENT AND CONFIGURATION

5) TRANSPORTATION

6) ALLIANCES BETWEEN SERVICE PROVIDERS AND LOGISTICS

7) OUTSOURCING

1) HANDLING AND ORDER PROCESSING: Order processing is the process or

work-flow associated with the picking, packing and delivery of the packed
items to a shipping carrier and is a basic element of order fulfillment. Order
processing operations or facilities are commonly called "distribution centers"
There are wide variances in the level of manufacturing associating to the "pick-
pack-and-ship" process, ranging from completely manual and paper-driven to
 highly software and completely mechanized; computer systems overseeing
this process are generally referred as :

 Picking: consists in taking and collecting goods in a specified quantity before

shipment to satisfy customers' orders.

 Sorting: process that separates items according to destination.

 Pre-consolidation or package formation: includes weighting,

labeling and packing.

 Junction : gathering packages into loading units for transportation, control and bill

of lading.

The order picking or order preparation operation is one of a logistic warehouse's

processes. It consists in taking and collecting articles in a specified quantity before
shipment to satisfy customers' orders. This makes order picking one of the most
controlled logistic processes.

2) PACKAGING: Packaging the product is a responsibility of the logistics team

because otherwise the product will reach damaged to the end customer and
this is a huge cost to the company. This is why, especially in CELL PHONES ,
 a huge amount is spent in the packaging of the product. The packaging may
cost only 1-2% of the value of the product, but if it is not right during
transportation, it will result in 100% cost due to the damage and loss of the
product. There are two types of packaging – One which the customer sees on
the shelf of supermarkets or hypermarkets where the package appears
attractive and makes the customer buy the packages. The other is transport
packaging where the products are packed in bulk so as to avoid any breakage
or spillage and yet allow them to transfer huge volumes of the product safely
from one place to another.

3) WAREHOUSE MANAGEMENT AND CONTROL:

The most important point in warehousing is that the warehouse should be located
nearby to the dealer or the distributors’ place so that it could faciltate the easy
delivery of goods. If there was a product which was from a branded company, but
which takes 1 week to deliver, then this product might not move as much in
the market as another product which is taking 2 days to deliver even though it is
unbranded. Thus, it makes sense for the branded company to have a closer
warehouse so that can immediately deliver the goods. Once a brand establishes itself
in a new territory, the first thing it does is to lease a new warehouse so that It can be
closer to the territory and closer to the end customers. The location of warehouses
also reduces the pressure on mother warehouse (large warehouses which stock most
of the products). When there is a peak in demand or if there is a drop in production,
these warehouses can take the pressure of deliveries and they can become
interdependent to ensure delivery of goods to consumers.

4) INVENTORY MANAGEMENT AND CONFIGURATION:

In cell phones inventory control is needed at a peak point. Inventory control is a
process that is vitally important to the success of any supply chain, handling any
type of material or product, from consumer & manufactured goods to healthcare
equipment and supplies. Having this data ensures visibility and allows you to
more effectively manage your supply chain. Achieving and maintaining inventory
accuracy is one of the most important functions of inventory control, contributing
directly to the profitability of the entire organization. Unaccounted for inventory
creates the need to carry additional goods, along with the associated warehousing
and handling costs, both of which quickly eat away at profits. 

5) TRANSPORTATION: Now we come to one of the major logistics

activities which is one of the most resources heavy and revenue
heavy segment of logistics. There is a single reason that
 transportation is costly – Fuel. Be it petrol, Diesel or gas, fuel is
costly, and it is mostly consumed in transportation activities. This is
why companies spend lakhs to control the transportation expenses
because it is one of the highest variable expense to any company.

Transportation involves the physical delivery of goods from the

company to the distributor or dealer and from the dealer to the end
customer. Generally, companies are involved only till the point
delivery happens to the distributor or the dealer. The distributor is
then responsible for the delivery to the end customer. However,
transportation is a cost to the dealer as well and reduces his profit –
due to which the company has to give higher profits to the dealer – to
negate his costs.The better the warehousing and the inventory
management of a company, the lower is the transportation cost for
the company. 

6) ALLIANCES BETWEEN SERVICE PROVIDERS AND LOGISTICS :

 Business alliances often occur between logistics service providers, i.e., the
cooperation between two or more logistics companies that are potentially
competing. In a horizontal alliance, these partners can benefit twofold. On one
hand, they can " resources which are directly exploitable". In this example
extending common transportation networks, their warehouse infrastructure and
the ability to provide more complex service packages can be achieved by
combining resources.
7) OUTSOURCING : Logistics Outsourcing  can be defined as the strategic use
of outside parties (business independency ) to perform activities traditionally
handled by internal staff and resources .Logistics outsourcing involves a
relationship between a company and an LSP (logistic service provider), which,
compared with basic logistics services, has more customized offerings,
encompasses a broad number of service activities, is characterized by a long-
term orientation, and thus has a strategic nature