Key Processes and Functions in Freight Logistics
This content explores key processes and functions in freight logistics, focusing on warehousing, distribution, and technical clusters. It discusses the interrelationship among these clusters, the role of warehousing, reasons for its importance, and major warehousing functions and activities.
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Presentation Transcript
FREIGHT LOGISTICS LEVEL 2 TOPIC 2: KEY PROCESSES AND FUNCTIONS IN FREIGHT LOGISTICS 3. ACTIVITY CLUSTERS IN FREIGHT LOGISTICS
Warehousing, Distribution and technical clusters in freight logistics - Refer to the table on page 47, it compares the key processes and functions that are associated with warehousing, distribution and subsidiary services. -Remember that these may differ from organisation to organisation.
The interrelationship amongst clusters - When a company only focuses on one activity, such as warehousing or distribution, or providing subsidiary services, the interaction amongst the activity clusters may be less obvious - Remember that the different activities within each cluster influence each other and are dependent on each other, as well as on the activities in other clusters
The role of warehousing in freight logistics - A poorly run warehouse can: # Cost a company a lot of money # Damage its reputation # Result in decrease in sales, allow theft # May even threaten the business existence
Reasons why warehousing is important: - It is helpful in storing goods when the demand is less than the supply -Is helpful in ensuring the safe and secure supervision of goods. This enables businessmen to prevent various risks like: # loss # fire
# theft #damaged of goods -Allows businesses to: # Process # blend # pack # grade goods before selling
Major warehousing functions and activities - These activities all ensure that the right products or goods are stored under optimal (best) environmental conditions and then dispatched at the: # Right time # Right quantities # Right destination
Activities that are generally performed in most warehouses: # Order processing # Inventory and stock control # Demand forecasting # Storage # Materials handling # Issuing And dispatch # Procurement
# Salvage # Scrap disposal # Reverse logistics Order processing - An order starts the processes in a warehouse, an order creates a flow of information that: # Precedes the goods # Accompanies them # Follows them
The three functions of processing - Provision of advance information Informs the manufacture or supplier that there is a demand for goods that needs to be met. -Provision of accompanying information It gives all parties the necessary information to ensure that the correct goods are picked and sent to the correct place.
-Provision of follow-up information Provides information about the completion of the order. Six phases may be identified in order processing. These phases are usually: # Order transmission and receipt # Preparation # Routing # Picking and packing # Distribution and shipment # Invoicing
-Order receipt # Order processing must start immediately upon receipt of the order - Preparation # Entails capturing of the information # Integrating (join) into the company s schedule # Missing information must be obtained immediately # New clients creditworthiness check maybe done too -Routing # Includes order confirmation # Generation of internal job orders ( A request from an employer to an employee to do a particular job)
-Picking # A pick list is generated for the picking of goods in the warehouse # The list is based on the information provided on the order. # Factors such as order and goods size, urgency and orders that have to be delivered at the same time or to the same client, is what determines the picking process # Information received from the picking process influences the information on inventory
-Distribution #Once the goods are ready for delivery, the transport documentation is completed # Information on the order serves as input for the transport documentation #The best options for transport and the delivery routes are determined and trip sheets finalised. -Invoicing # Invoicing of orders can be done at various points during the process,
#PLEASE COMPLETE ACTIVITY 6 1. IT MENTIONS THAT IT S A GROUP ACTIVITY PLEASE COMPLETE IT INDIVIDUALLY 2. IT ALSO MENTIONS THAT YOU HAVE TO VISIT A COMPANY,THAT IS NOT POSSIBLE SO PLEASE TRY TO DO IT BASED ON AN INTERNET SEARCH
