Logistics has become an integral part of supply chain management. Logistics being part of the activities within the supply chain management process influences the effectiveness of the supply chain (Azmi et al. 2017). The logistics execution process involves three main components, namely, warehouse management, shipping, and transportation. Warehouse management entails several fundamental activities that ensure the objectives of the supply chain are realized. First, it ensures that the recommended procedures are followed during the receiving and issuing of goods. It also facilitates the inbound and outbound processes. The inbound process is where the goods are collected from the vendors and kept in the warehouses, while the outbound process is where the goods are taken from the warehouse and delivered to the customers. Other activities that take place in warehouse management include delivery processing and inventory management.
Shipping is mostly concerned with the inbound delivery, which is, ensuring that goods from vendors arrive at the business premises. This step involves a series of activities. There is the issuance of a transfer order that alerts the warehouse to place the goods into storage. There is also order confirmation of inbound delivery to determine if the quantity ordered has been delivered. It also involves the inspection of the goods for quality. There is also the change of documents used in the shipping process. Lastly, it entails inventory management for the goods as they wait to be transported.
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Transportation is concerned with the outbound delivery, which is, ensuring that the goods reach the customers in good condition (Li, 2014). Many business enterprises get plenty of orders for the supply of goods from customers. For the logistic cycle to be complete, the goods must reach the end-users that are the customers. The business enterprise will use the available means of transport to ferry the goods to the customers’ destination. This step also involves the use of documents that acts as evidence of the agreement between the parties involved.
References
Azmi, I., Hamid, A. N., Hussin, N., & Ibrahim, I. N. (2017). Logistics and supply chain management: The importance of integration for business process. MUTRFC. 1-7
Li, X. (2014). Operations management of logistics and supply chain: Issues and directions. Discrete Dynamics in Nature and Society, 2014. 1-7.
