How to improve the level of logistics services

How to improve the level of logistics services

Introduction: Logistics services refers to the logistics enterprise or the logistics department of the enterprise from the handling of customer orders until the goods delivered to the hands of the customer, in order to meet customer demand, the effective completion of the supply of goods to reduce the customer's logistics operations load of all the activities.

For most manufacturers, it is critical that products reach users quickly and efficiently through the supply chain. The proximity of e-commerce poses a challenge to logistics managers, who must strive to transition from "old economy" behaviors to the "new economy".

In the emerging B2B world, traditional ordering, inventory, and logistics management systems are no longer able to keep up with the demands of product distribution and service. The solution: retool your logistics platform and look to third-party logistics providers for help. Finally, and perhaps most importantly, hire logistics executives to participate in front-end supply chain planning.

Logistics is critical to the success of e-commerce. Everyone is too busy getting online orders to consider whether they should be received or whether the logistics supply can keep up. Executives have taken notice: electronics manufacturers are still trying to fully understand what Web commerce is all about and how Web-based supply chains will change the way they `cooperate and source raw materials.

Last year, during the Christmas shopping period, Toys?R?Us had a logistical meltdown. The toy retailer's online order management tool was not working with the system. When Toys "R "Us launched its online business, it did not have a system in place to handle the high volume of orders placed online.

High-tech companies are more concerned with day-to-day on-time delivery, real-time market availability, systems integration, internal and external supply chain collaboration, and forecasting accuracy. For some of these companies, e-commerce-related logistics has become an extension of their corporate strategy. While some companies have begun to strengthen their back-end systems related to order fulfillment, many are still standing still in e-commerce. Any oversight in supply and demand information can ruin a manufacturing line. Or worse, cause an OEM to miss a product launch deadline.

Evaluating logistics platforms

Properly evaluating the functionality of existing logistics platforms and taking corrective action is critical. Although new orders can be received from Web sites, data for most orders must be manually entered into other supply chain management, planning, warehousing, and logistics systems. In the Internet economy, logistics platforms should include content management, application development, cross-functional integration, business information, and mobile Internet access.

Companies need a platform that allows both supply and demand to retrieve the information, data, and shipment records they need to fulfill their business plans. A logistics supply center is needed so that buyers, sellers, distributors, and transportation providers can access a resource center; get data from the ERP system, order records to help them identify potential problems. An effective supply center helps to improve the function of logistics by being a place where information is gathered.

The different systems need to be harmonized. Logistics systems must be used in tandem with platforms for customer service management, inventory management, production planning, and business analytics. It is not enough to get information from the PC in the office; Internet supply chain managers, customers and suppliers want real-time information from pagers, cell phones, PDAs and other wireless devices.

The level of logistics is related to the application of relevant software. Considering the multitude of tools available, there are no important rules to follow in this frontier area. Not so long ago, many companies relied on ERP to realize a variety of different operations. Your business should not be sacrificed in order to adapt to one solution. If you wish to optimize your commerce, you should first define a strategy before looking for a solution that suits you. The perception that transportation and logistics is something that happens in the back office of the supply chain must change. All the planning means little if logistics managers are not involved in the front office of product development in procurement, marketing and finance.

Providing localized logistics services

Intel Corp. reached an agreement on warehousing and logistics with Taiwanese distributor, World Peace International (WPI). WPI will then be able to supply and provide services to major motherboard manufacturers and OEM customers on the island of Taiwan. This move is to strengthen the strength of Intel's direct sales channel, and the use of WPI to shorten the delivery time with major customers in Taiwan. Prior to the partnership, chips for Taiwan customers were shipped from the U.S., and even with the fastest airfreight, it was sometimes difficult to meet the on-time delivery needs of major customers.

Intel acknowledged that the collaboration with Shiping on logistics, the first time Intel has worked with a distributor to address logistics issues in direct sales, was done to accommodate the requirements of Taiwan, a major electronics assembly center. Taiwan's motherboard makers believe that Intel's move is an attempt to stock its chips in Taiwan in order to compete with Taiwan's local chipmakers. In terms of cost, Intel's outsourcing of direct logistics services is stronger than building direct chip stacks in Taiwan, according to Shiping. In order to achieve on-time delivery, Taiwan's chip makers are all in local production, local inventory. Therefore, Intel had to find some sort of more economical way to provide similar local inventory services.

Providing logistics services to Intel is not part of Seppei's regular business, and Intel pays for it separately. Seppei's logistics services in Taiwan began late last year, when it handled some of TI's direct sales. Worldpeace will also provide inventory services to other manufacturers for direct sales of their products.

The Chinese mainland opens the door to opportunities for Seppei, especially for serving Taiwanese manufacturers operating in the country. The company continues to see record monthly sales in mainland China. At first, Seppei was just following its old patronage into mainland China. Now, Seppei has received the go-ahead from the mainland government to deal directly with mainland customers. In terms of exploring the mainland China market, the 10 years of effort by Shiping has finally begun to pay off. In order to further expand its logistics business, WPG, the parent company of Siping, has established an independently operated Asian regional warehouse in Singapore, managed by another subsidiary, Allcom. Currently, the logistics company's services are limited to World Peace and WPG, which includes its subsidiaries Elite Electronics and LongView Technologies, among others. WPG and Allcom hope to attract other distributors to outsource part of their logistics business.