Logistics Management Systems

• Logistics management systems are software tools for businesses to move goods from production source to the final user.
• It involves acquiring, storing, and transporting inventory from origin to destination.
• Logistics management is an integral part of supply chain management, ensuring efficient planning, management, storage, and movement.
• It starts with gathering raw materials and ends with delivering goods to the destination.
• This system automate and optimize transportation, distribution, and storage of goods.
• The supply chain is the product's journey from production to customer and a logistics management system controls the movement of information, goods, and services.

7 Right Conditions

• Right product
• Right quantity
• Right condition
• Right place
• Right time
• Right customer
• Right cost

Types of Logistics Systems

• Logistics systems are computer programs that automate logistics functions like warehousing, transportation, inventory management, and reverse logistics.
• Automated systems enhance productivity and improve workflow communication.

Warehouse Management Systems (WMS)

• Warehouse automation improves productivity by efficiently controlling tasks.
• A WMS produces rotas, allocates staff, manages order processing, and schedules stock movements.
• It reduces staff costs and automates warehouse vehicles.

Transport Management System (TMS)

• A TMS reduces costs in the long term and enhances customer service with fast delivery.
• This software helps determine the most suitable route based on distance, cost, and efficiency.
• Real-time inventory tracking until it reaches the destination
• and supports multiple transport modes and tracks multiple goods.

Reverse Logistics System

• Manages customer returns, and returns the goods to the manufacturer.
• Coded chips attached to inventory items enable tracking.
• The system identifies packages for re-use, recycling, repair, or disposal.
• Automated reverse logistics speeds up returns processing, allowing staff to focus on more important tasks.

Kanban System

• Kanban is an inventory control system used in just-in-time (JIT) manufacturing, developed by Taiichi Ohno at Toyota.
• It uses colored cards to track production and order new shipments of parts or materials as they run out.
• Kanban is Japanese for visual card, using visual cues to prompt needed actions to keep processes flowing.
• A main goal is to limit excess inventory buildup on the production line.

Elements of a Logistics System

• Storage, Warehousing, and Materials Handling
• Packaging and Labeling
• Inventory
• Transportation
• Delivery
• Reverse Logistics

Storage, Warehousing, and Materials Handling

• It involves safe and economical stockpiling of goods, critical for balancing supply and demand.
• Demand fluctuates Customers
• Warehousing holds products until demand increases, requiring well-facilitated warehouses and storage.
• When demand arises, products are promptly assigned and delivered using express services.

Main Modules of a Logistics System

• Order Management

Order Management

• Receiving and processing orders online involves creating and editing inventory, customer service, accepting payments, checking for fraud, and handling documentation between entities.

Warehouse Management

• Aims to maintain, control, and automate warehouse operations.
• It includes receiving, moving items, managing staff using KPIs, ensuring safe work conditions, and using software and hardware to locate and track items.

Packaging and Labeling

• Packaging must be robust for transportation and accommodate product dimensions.
• Proper labeling, boxing, and sealing are essential.
• Products must be safely packaged and easily accessible for inspection.
• Product packaging significantly impacts customer purchasing, especially for fragile items.

Inventory

• Inventory is critical to any logistics system as it represents the stock of goods a company can fulfil customer demand with.
• Efficient inventory management includes ensuring availability, minimizing stockouts, and reducing holding costs.
• Accurate forecasting, real-time visibility, and effective control strategies optimize inventory levels and balance customer service and cost control.

Inventory Management

• Inventory management is responsible for controlling and documenting the amount of product for sale.

Warehouse management

• Warehouse management is responsible for the following operations

Warehouse Design

• Warehouse design provides a manageable 3D map of the warehouse building to maximize storage space, manage inventory placement, and improve item and labor flow. Areas requiring attention in the shipping queue can be prioritized.

Picking

• Synced with a scanning device, the software helps pinpoint items throughout the warehouse building.
• By tracking barcodes, WMS guides order assemblers to the required products via the most efficient route.
• To ensure the correct lot is selected, pickers doublecheck it, on scanning the attached barcode, the system verifies it.
• Batch picking saves time by allowing for picking multiple orders in a single run.

Packing

• Orders can have specific packaging requirements to guarantee safe shipping or improve the unboxing experience.
• The WMS ensures correct and efficient packing, according to the business's rules.

Labor Management

• Labor Management which supervises the human side of warehouse operations integrates into WMS.

Transportation

• Transportation is a vital element in logistics moving goods from one location to another.
• Efficient transportation management ensures timely delivery, reduces costs, and improves customer satisfaction.
• Logistics managers should select the suitable mode, optimize routing, and manage risks for smooth operations.

Strategic Transport (Choosing a shipping method)

• LMS determines the best transportation option for freight needs.
• Options range from dry van freight for non-refrigerated products to refrigerated freight for temperature-sensitive items.
• From less-container-load freight for small loads to heavy freight for oversized loads and bulk materials.

Strategic Transport (Defining customs fees and documentation for global fulfillment)

• LMS simplifies international shipping, which involves paperwork and changing export control regulations.
• Supporting multiple languages and currencies, the system calculates value-added taxes, cross-border fees, and freight forwarding charges.
• LMS manages necessary shipping papers, ensuring compliance with in-country and cross-border regulatory programs.

Transport Management

• Cross docking - This delivery eliminates the need to store products in the warehouse, as they are shipped straight from manufacturer to customer.

• It reduces delivery time while saving on labor and warehouse space.

• However, cross-docking risks losing control over inventory. So handling cross-docking effectively requires robust inventory control processes.

• Last mile logistics - The final step of the delivery process from a distribution center/facility to the end user - can range from a few blocks to 50 or 100 miles.

• To delivery orders to consumers, last mile logistics engages parcel or small package carriers.

• Order tracking provide clients with access to an online portal that monitors shipment on the road, alerting to any transit exceptions or unforeseen delays.

• Location tracking involves real-time reports in a vehicle-position database.

• Another method is to report the object's arrival or departure, recording details like ID, location, time, and status.

Delivery

• Transportation of goods from a warehouse or distribution center to end customers.
• It encompasses activities like order processing, packaging, shipping, and tracking.
• It can significantly impact customer satisfaction and loyalty.
• Efficient delivery relies on communication, route optimization, and timely execution to ensure products reach their destination quickly and safely.

Transport Management (Delivery management & scheduling)

• TMS enables scheduling shipments through a personalized online account.
• Delivery estimation factors in population density, vehicle type, capacity, and predictive traffic analytics.
• TMS ensures on-time delivery through automated tracking and alerts to both shippers and consumers if shipments fall behind schedule.

Transportation Accounting

• Transportation accounting. TMS keeps clients informed of their shipping expenses as it gathers all shipment-related documents in one place.
• Simplifies accounting by allocating costs, assigning billing codes for accountability, and generating and paying freight invoices.

Reverse Logistics

• Reverse logistics is an essential component in logistics systems that deals with products and materials after delivery to customers.
• It includes activities like returns management, product repair or refurbishment, movement to origin/warehouse, etc.
• Advantages are lower costs, smaller carbon footprints, and on-time deliveries, consolidation is when some businesses combine several smaller shipments into one.
• Improves customer service by ensuring timely deliveries.

Reverse Logistics

• Managing returns from the consumer back to the producer is a logistically challenging process.
• A reverse logistics system (RLS) helps streamline repair, return, and product reallocation processes.
• Returns logistics services include:
  • Information tracking: Product location and return reason are tracked.
  • RLS helps manage this information.
  • Returns status: Gives customers visibility into their returns, increasing satisfaction.
  • The best way to do that is provide instant feedback on the return activities for their order in the returns portal or by using e-mail/SMS notifications.
  • Quality assurance tracking: The system will notify the appropriate people so they can handle the issue.

Reverse Logistics (Logistics Analytics)

• Using analytics and big data, software analyzes shipping history and improves client operations to minimize costs and reduce times.
• Applying business intelligence, develops KPIs, metrics and computer models to predict supply chain issues.
• Important reports LAS runs include:
  • Freight accruals track transportation costs, facilitating calculation of true net revenue.
  • Carrier reports identify least-cost carriers and track their performance
  • KPI reports provide an overview of company performance, focusing on indicators that are particularly meaningful.