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Logistic can be defined as the method of conceiving, implementing and managing the effective and efficient flow of products, goods and services from the end of manufacturing to the end of consumption for the reasons of adhering to consumer demands. Logistics can be explained as an interaction between manufacturing and marketing functions of an organization. The main aim of the logistic management is to position the strategic work-in-progress, raw materials and finished product in a strategic geographical location at the minimum possible costs.
It is really assumes much costs to create a logistic value for a business. Considering the type of business, logistic expenses comprises from 10 to 40 % of marketing expenditure of an organization. To minimize the cost of logistic activities in a business, now new enhanced technologies like RFID, GPS, and EDI are being used by business. This research essay details how new technologies are being used in the logistic management of a business and how such usage enhanced technology saves cost and time for the business.
Material Handling This is an important function in a supply chain management of an organization.
It connotes to the short-distance transportation of product within manufacturing plant or warehouse. As the material handling is expected to increase the cost of a product [e. g. product loss, labor costs and damage to the product] rather than add value to the logistic systems, management undertake cost-efficiency initiatives like transporting the product in a straight process wherever feasible or lessening the number of handlings. Customized Transportation Inc [CTI] is the supply chain management company which has been engaged by Compaq’s Houston assembly plant.
CTI maintain separate contract with 200 or more of Compaq’s global suppliers and they will ship to CTI 410,000 square-foot automated warehousing facility located within 15 minutes of Compaq’s assembly plant . This facilitates CTI to receive quickly and efficiently receive ,warehouse and ship products as Compaq needs them. Suppose, if a customer orders 1000 Compaq laptops, a bill of materials [BOM] which contains a complete list of components needed to manufacture the unit ordered is transmitted through EDI [Electronic Data Interexhange] to CTI’s Houston material center. [Zuckerman 2002:62].
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