Logistics planning involves three stack holders1. The supply point / Manufacturer unit2. The fleet owner3. The end consumer
All the three stock holders needs to be satisfied for effective logistic operation
In the supply point / Manufacturing unit, the stock should be available. We have to ensure that the the inventory carrying cost of these units are minimized. This will not only save the interest cost on the inventory but also will save the storage area.
The fleet owner is another imporant element. We have ensure that the fleet is utilized effectively with minimum assured mileage per month. This will make the fleet owner profitable hence he / she will ensure his / her interest into the business.
The last element is the end consumer. They always prefer to maintain the minimum stock to avoid blocking capital in inventory. They always wanted the stuff "JUST IN TIME".
Considering all the three stack holders we need to have a balanced approach and should use the latest IT technologies for the making the logistic operation effective. Some of the points for utilization of IT is as given below:1. The next7 days plan for the Manufacturing plant should be made available to logistic company and same to be circulated to the end customers. So every one in the system is aware of the facts.2. We should demand the cunsumption plan for next2 days from end customer.3. If possible we should develop the route map and try to look for the possibility of part load delivery.4. The fleet should be installed with GPS system so as the logistic department can know the location of the fleet.
Once all the factors are known then the logistic department should work out the strategy to delivery of the goods. The above illustration is given considering all the parameteres are known but it is possible to eliminate one parameter.
In my past assignment, we were controlling the logistic operation only by controlling the stock availability at the terminal and retail outlet. We had a centralized control center, where we were having the online stock position of all the retail outlet (1433 Nos) and Terminals (13 Nos) in India. So we used to create the advance indent in the system from control center. This indent system was having the priporty attached to it basis which th terminal used to supply the product to retail outlet. In this process we had not automated the fleet and considered that the indent will be cleared once the fleet is available. However we have saved the money on this aspect but due to this the fleet utilization was little poor.
Trust this will help.
