Supplply chain management:
The above activities must be coordinated well together in order to achieve the least total logistics cost. Trade-offs exist that increase the total cost if only one of the activities is optimized. For example, full truckload (FTL) rates are more economical on a cost per pallet basis than less than truckload (LTL) shipments. If, however, a full truckload of a product is ordered to reduce transportation costs there will be an increase in inventory holding costs which may increase total logistics costs. It is therefore imperative to take a systems approach when planning logistical activities. These trade-offs are key to developing the most efficient and effective Logistics and SCM strategy.
- Information: Integration of and other processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, transportation, and potential collaboration etc.
- Inventory Management: Quantity and location of inventory including raw materials, work-in-progress (WIP) and finished goods.
- Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain.
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To be a price warrior in the cargo market?
• we will follow a low-cost model —
For that you have to build a model to meet the purchasing power of your customers. In India warehousing, logistics and transportation comprise around 28 per cent of the total cost of manufacturing, while this is not more than 10-12 per cent globally. By using this service, manufacturers will be able to reduce costs by over certain percentage points since they will need lower inventory/warehouse costs. . we will still be able to offer prices which are 5-10 per cent lower than existing cargo operators. That is why concentrate on route based marketing rather than diversified efforts
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