should keep in mind is business aims at profit through effective cost cutting
in all its business-related activities.
And logistics cost remains a major concern with the company.
inbound logistics, as we saw earlier, it is goods moving into business, into
the company. Materials may come from some company location; that is, they may
be sent by another integral part of the company from some local position; or,
materials may come from some external sources. Either way, movements of goods
cost and logistics management must so plan and execute that the cost involved
in the movements of the goods is minimal and necessary. Once the goods are
received, the question of storage begins with warehousing and all warehousing
activities must also be so monitored that the warehousing cost for the company
is also minimal.
what is generally known as inbound freight management which is also a vast
logistics performs three major functions: production scheduling, procurement
and dealing with returned products.
Scheduling refers to careful plan of
the sequences of action in time frame keeping in consideration the other
related future tasks. In other words, unitizing the task and allotting time for
each unit. And production is getting a product built out of raw materials to
suit the demand of the market.
Production scheduling also involves
allocation of adequate resources for production to completion so that market
demand is met fully. The focus of the scheduling is to effect a balance between
resources required for production and the timely fulfillment of the needs of
the customers. Lapse or fault either in availability of resources or in meeting
the needs of the customers in time will adversely affect the business. It all
boils down to one major fact: every activity involved in production scheduling
must be uncompromisingly cost-effective.
Cost effectiveness includes two major
concerns: minimizing the production time and costs. The two objectives directly
have a bearing upon the bottom line which after all is the life line of any
entire schedule goes bang; that is, the logistics personnel may have to tackle
random dates, random weights and random due dates and even random processing
times. Dealing with such a situation is called stochastic scheduling.
In our next
session, we shall deal with procurement as the second function of inbound