Efficient and timely distribution of goods from producers to customers is what global logistics hopes to achieve. Various components come together to make global logistics possible; managing goods that are collected from producers, storing them and making sure the flow in the chain of supply from the producer to consumer is what global logistics is centered on. Inventory management and packaging play important roles in global logistics; inventory management looks at different variables that include location, cost, transportation management and inventory optimization. Packaging is critical in; avoiding delays due to non-compliance, packing items appropriately for smooth transportation, providing important information and more.
Inventory management operations are what determine the products being done efficiently. According to The University of Tennessee Knoxville (2021), location and warehouse management play a crucial role in inventory management. This includes how the products are stored, distributed and eventually dispersed. In order to achieve customer satisfaction, it is essential that a good location is selected and operations that are needed for product fulfillment are done efficiently. When the warehouse is managed well there is inventory visibility which makes certain that thefts and losses are avoided. Tracking of inventory is beneficial in ensuring that customers are able to get their products according to stipulated times. In the event of an issue, the warehouse will be aware and be able to make a contingency plan to make sure that consumer satisfaction is achieved. According to Sutter (2019), costs may arise due to stock received in various seasons. In the event where a warehouse has more products than it is capable of holding, it may be forced to rent more space to store the product and this results in additional costs. Also, there are times when a product may be difficult to sell, meaning the warehouse will house the product longer than planned and incur more expenses. It is important to have a system that can help in forecasting which products sell and which ones are more difficult to sell. Having such a system is beneficial in avoiding unnecessary storage costs and instead help with savings. According to The University of Tennessee Knoxville (2021), the management of inventory and transport go hand in hand. Transport management in global logistics is the part that looks at transporting products from the place of manufacture to the distribution centers or fulfillment warehouses. Any small delay in transport can completely disturb a global logistics structure that flows effectively. To avoid this delay, aggressive and proactive transport management should be employed to result in a just-in-time process. It is important to have alternative plans in the situation where an unforeseeable problem arises and have visibility in logistics operations. Inventory optimization is intent on finding the best balance regarding inventory, this means not under ordering or over ordering stock. A system can be implemented that measures disturbances in the operations of global logistics and consumer demand. Having a system where inventory can easily be recalculated when changes occur can help make global logistics run well.
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Packaging plays a significant role in global logistics as it has an array of benefits when done accordingly. Packaging is what can set apart a company from others, it is what results in consumers getting their products without any damage, and it can improve or cause disruptions in global logistics. According to Cohen (2019), in global logistics items are distributed all over the world and need to follow each locations regulatory needs. Certain areas may require items to be packaged in a specific way based on various issues, if this is not done the distribution of the items will be delayed and may result in many costs. Additionally, locations may vary in weather conditions and care needs to be taken in packaging to avoid any possible damages. For smooth transportation packaging of different products needs to be considered. For instance, breakables may require extra padding and be placed in boxes, having to distribute breakables that are simply packaged in paper would require too much effort and make the trip quite difficult. For convenient transportation it is imperative that the right packaging is taken into consideration. Information is also an aspect that is considered when packaging is being conducted. It is important that the person who is transporting a product is given certain information. Some information would include that the liquid is highly flammable, breakable or needs be placed ‘this side up’. Without this information may problems will arise and have very unfortunate outcomes. Considering that global logistics may result in items spending varied amounts of time in transit before they arrive at their destination certain issues should be looked into. Storage of items in warehouses along the way may be inevitable and so packaging should be done well. The products need to be packaged in a way that ensures that no matter how they are placed they are unaffected.
Global logistics is something that consumers often are not bothered about, for them it is all about receiving their product in good condition. For the people who are part of the process, they have a better understanding of the many things that need to be taken into account for a consumer to get their goods on time and excellent condition. Global logistics is a vital part of supply chain and needs to be constantly looked into so as to ensure customer satisfaction. Companies need to be knowledgeable of the components of global logistics and continuously find ways to improve this process. If it is not handled well it can lead to loss of business and a build up in costs.
References
The University of Tennessee Knoxville. (2021). The Importance of Inventory Management in Your Supply Chain. Supply Chain Management 101 . https://supplychainmanagement.utk.edu/blog/the-importance-of-inventory-management-in-your-supply-chain/
Sutter, B. (2019). 3 Inventory Management Problems and How to Avoid Them. https://www.score.org/blog/3-inventory-management-problems-and-how-avoid-them
Cohen, J. (2019). The Importance of Packaging in Logistics. https://www.shiproyal.com/rsc-the-importance-of-packaging-in-logistics/
