Major logistics problems
Today, we’re going to consider logistics process challenges and role of modern web-applications and TSM as a yard management system in logistics and supply chain management.
Logistics process is one of the most expensive budget items for a lot of manufacturers and distributors. It is clear that the price of final products depends on logistics costs. The question of value formation becomes crucial for many manufacturers in times of crisis, since the competitors try to maintain their market positions as well. It can be reached through cost reduction across the whole process of product development. However, we would like to focus not only on the manufacturers’ problems.
Nowadays, most companies are facing challenges related to optimization of logistics activities, increase in transparency of logistics processes, optimization of delivery scheduling, as well as efficient management of stock inventory and orders. As a rule, the biggest costs are hidden between supplier and consignee. The ultimate goal is to save time and money. We will try to answer the question of “how to optimize managing deliveries throughout the supply chain and how logistics can produce indirect profit”.
Role of Information Technology in Logistics
Effective logistics management and implementation of information technology are not just a fad for modern companies, it became a must in today's competitive environment. Until recently, the role of information technology in logistics has been increasingly underestimated. But these times have passed away.
Let's critically look at the basic logistics operations. One of them is order management. Everybody knows that business performance depends on the level of client servicing, i.e. logistics. Any incorrect information and delays in order processing can completely hurt the normal business operation, as well as damage relationships with customers and partners.
Another burning issue is inventory management. Every senior manager knows that extra inventories drive up higher total costs. The question is how to provide a quality service level with a minimum amount of inventories?
Information technology helps businesses control the whole delivery process and monitor its main stages. Therefore, the companies do not have the need to store extra inventory.
Automation of order and delivery management via TSM
Modern electronic systems allow companies to effectively manage orders and deliveries. They also help them control inventory and reduce truck downtime during unloading and loading. Let’s consider some features of these systems using TSM software (timeslot / management system) by S2B Group software developer.
TSM is a powerful logistics tool to schedule and optimize deliveries that allows organizations to save money. This web platform is designed for managing orders and deliveries within supply chain. The cloud-based solution keeps all delivery information in one place and allows internal departments of the enterprise and external logistics partners to coordinate their actions in real time. All network participants benefit from using yard management system.
TSM advantages for supply chain participants
Manufacturer. TSM software provides inventory scheduling tool that helps manufacturer save on the use of additional storage space, as well as regulate warehouse labor resources. Just in Time concept enables to streamline business performance by receiving goods only as they are really needed, thereby reducing inventory costs. The system allows manufacturer to schedule and control the date and time slot for delivery including truck arrivals and departures, loading and unloading activities, as well as reduce truck backups and downtimes.
Logistics operators and distributors. These supply chain participants will also benefit. They will not have to waste their time and pay demurrage costs thanks to reduced waiting time during loading and unloading. TSM ensures that trucks arrive on the agreed delivery date and time and are allocated as required. Loading and unloading activities go much faster due to reduced time for document preparation. You can also save on employment of warehouse specialists who will be involved directly to perform project related work when it is really needed.
Retail. Retail companies will benefit as well. They will be able to plan and efficiently employ warehouse staff on a project-specific basis, which saves their money. Additionally, the software allows the end user to schedule, choose and control the date and time slot for delivery including truck arrivals and departures as well as loading and unloading activities. This will also ensure that the product is always available. TSM allows organizations to order and schedule priority of delivery.
As you can see, all supply chain participants get their benefits. A new timeslot management approach improves performance of the entire supply chain. The conclusion is simple. Using modern information technology in logistics processes is one of the key factors of enhancing the company competitiveness and improving its logistics activities.
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