Inventory Management – Different Types of Inventory

What types of inventory are needed for your activity?

The inventory represents an ensemble of operations designed with the purpose of determining the existence of active and passive elements, but also with the purpose of determining potential stock problems. The inventory represents a clear image of all the patrimonial elements and of the economic results of the company.

Different types of inventory

There are different types of inventory, considering the needs of the company, and the area of activity. An inventory can be made at the beginning of the year, or when the stocks are rearranged, but also if the activity of the company stops. A special type of inventory is the one that is made at the requests of the authorities, as this must be made by a representative of the company, along with a representative of the respective institution.

If minuses or pluses are found, an inventory is requested as soon as possible. This is an inventory that must also be made by two or more persons, and if the pluses or minuses are confirmed, further investigations are required.

In case of industrial companies, the inventory of machineries is important, and this is a special type of inventory, as the state of the respective machineries must be established. If some of those devices are broken or old, they must be repaired or replaced.

It is important to determine what type of inventory is needed for your activity, as the success of this operation depends on this. Moreover, the people that make the inventory have to be professionals. Some companies have special people that are employed only for this matter, and if you are the manager of such facility, you should consider employing a specialist of this kind.

Logistic Distribution – Logistic Distribution System

The logistic distribution chain within a company
The logistic distribution system is composed of an ensemble of activities generated by the transfer of goods between the levels of the marketing channels, and by the necessary infrastructure to maintain those operations. At the level of a company, the logistic system is composed of three main categories, but considering the specific of the activity, the system might be divided otherwise.

Supplying includes the activities of buying materials or goods that are necessary for the company to reach its objectives.

Production sustaining activities
This component of the logistic chain makes sure that the supply line works perfectly, and that all the perquisites for a solid activity are met. This activity only refers to the material fluxes inside the company, between the different stages of the production process.

This component of the logistic chain includes activities that offer the products in the needed quantities, at the right moment, and where they are solicited by clients. This includes transportation, depositing, stock management, taking orders from the clients, packing and information management.
Integrating those three areas is possible with the informational flux, which is considered a distinct flux by some. The exchange of information within the organization and between companies facilitates planning and control of the daily operations. The three component parts of the logistic contain operations that are correlated with the chain of values, which is an instrument needed to identify new modalities to create a superior value for the client. With the help of the specialized 3PL companies, your firm could reach its maximum possible efficiency in the shortest time possible.

3PL Inventory Control – How to Manage Inventory in 3PL Setup

How to manage inventory in 3PL setup

The inventory management at 3PL is a complex process, and it has repercussions over the whole deposit stock, but also on the storage space, lots and trucks. For this reason, the system has to be easy to use, as errors are not accepted. The module must cover several inventory methods, as for different companies, different management methods are needed. Moreover, a single inventory from 3PL companies has to be able to make an inventory in different manners.

Effective 3PL Inventory Control

The 3PL inventory control system able to generate reports, and to check the respective reports with a history, so the managers would be able to determine which stocks have to be replenished. This kind of system is an interactive one, and those reports are needed to establish the stocks for each depositing location.

The inventory can be made on deposit area, on categories of products, and they can even be made in parallel with other operations, such as goods reception and delivery. A major advantage offered by 3PL Inventory Control system is able to compensate the minuses and pluses discovered during the activity.

As any other operation in a warehouse, the inventory has a logical part, the inventory command that generates the stock, and the physical part, which is counting. Considering the importance of inventory, the program must be adapted to the needs of any company, and the client must maintain communication with the software provider, so all the problems of the system would be easily solved.

How to Design a Warehouse – Warehouse Layout Design

How to design a warehouse effectively

With the increasing need of commerce and transport companies for storage space, the warehouses today must be built in a smart manner. The space must be used completely, and besides this, the warehouse managers have to implement smart managing solutions of goods. If you want to build a warehouse for your company, you will have to find a company, which is able to give you the best warehouse design

Is the warehouse layout important?

The efficient warehouse layout implies to use the space at your disposal with maximum efficiency. It is also important to leave space between the different compartments of the warehouse, so people and machines could easily move around. Of course, the security matters must be respected, as safety comes first when it comes to those warehouses.

The design warehouse project must start with planning. A good company that would create such a deposit for you must observe the fluxes of goods, so they would be able to create some efficient structures. It is one thing to design a warehouse where small packages and envelopes would be kept, and another thing to build such a facility to store heavy materials. Those aspects must be considered by the designer, and this is why you should find a good collaborator on this matter.

Of course, the warehouse must be managed efficiently, so besides designing the space, the constructor must also offer you the software needed for management. Moreover, you will also have to collaborate with the designer later, as you never know when you would need to expand the warehouse.

Reverse Logistics – Reverse Logistics Management

What is reverse logistics?

At the end of the 20th century, logistics begun to be considered more than moving goods from one place to the other. Today, we are talking about complex chains of distribution, and logistics represents an important part of the marketing strategy of a company. In this context, complex services appeared, such as reverse logistics, a distinct part of a company’s logistic chain.

When do you need reverse logistics?

Reverse logistics is the process of retiring goods and products from the market. As we are talking about a delicate process, it must be done perfectly. There are many reasons for a company to retract products from the market: bad quality, manufacturing mistakes, or improper labeling. In case one of those problems is detected, the manufacturer has to withdraw those products on the market, and this process must be done fast, effectively and discretely.

As a definition, reverse logistics is the process of eliminating ineffective, used and bad products from the chain, and also redistributing the respective products where they are needed. Maybe a store has a big stock of goods that cannot be sold. In this case, the excess stocks must be moved to another location where the respective products are needed, and this process is called reverse logistics.

Reverse logistics is needed by commerce and distribution companies, but also by companies having other domains of activity. This process is designed to increase the efficiency of activity, but also to clear the image of a company, in case we are dealing with bad products.

Distribution Services – Materials Distribution Services

Distribution services as a complex activity

Distribution services are the services needed to manage a supply chain effectively, and Distribution management can be considered the art of administrating the flux of distribution. Whether we are talking about goods, energy or information, but also about other products or services, distribution services are needed.

It is impossible to be involved in international commerce, but also in global import export operations without good distribution services. The distribution services include information, transport, inventory and depositing of goods and materials, and the operational responsibility is to reposition those goods wherever they are needed, and to make sure that all the stores and work points of the company have the needed goods and materials all the time.

The distribution services of a company must be perfect, and because of outsourcing and externalization, a large number of companies prefer to leave this process in the care of third parties. We are talking about specialized distribution and logistic companies that are able to run this process effectively, and to increase the operational effectiveness at maximum.

Especially for commerce and retail companies, this process is important, as it makes sure that all the stores and work points are supplied with the needed goods. This process is now supervised on the computer, so the managers would always know where the goods are, what are the work points that are not fully supplied, and what work points have excess supplies. Without good distribution services, the profits of a company might be affected. For this reason, the distribution services can also be considered as an important part of the marketing strategy of any company

Logistics Management – Logistics Management Software

The usefulness of logistics management

As logistics become an important branch of material management, and as any company needs a great logistic department, the importance of logistics management has also grown. Today, there are specialized schools for logistic managers, and the complexity of this domain requires well-prepared professionals of this type.

Logistics management implies for the manager to understand the supply chains, to make sure that all the stores and the work points of the company are supplied. For this, a logistics management software is needed. The manager has to know this program perfectly, but also to maintain a strict connection with the software company. New modules must be added, and the old ones must be removed from the program, as the needs of the company change. For this reason, the software used to manage the logistics of a company must be modified now and then.

Good management means a strict connection between all the parts of the supply chain, from transport and depositing, to distribution and sales. An important benefit of good logistics management is the fact that the general costs of the operations will be reduced, as long as all the parts of the distribution are carefully supervised. With good logistics, the mistakes are eliminated. There will be no over-supplied work points, and the stores will always have what they need. All those aspects will certainly lead to a more healthy organization of the company, but also to an improvement of the company’s performances. For this reason, some companies need more than one logistics manager, and sometimes, using the services of 3PL companies are recommended.

Inventory Management Software – Inventory Management Solutions

What is the Inventory Management system?

The Online Inventory Management system is one of the best methods that can be used by a company to manage stocks, cars and employees, being perfect for a logistics company with many work points and offices. Especially if we are talking about a national distributor, it is important to know where the goods are, what is the closest car that can deliver those goods, and the stores where the goods are sold. With such a system, the efficiency of your company will be increased at its maximum, and your stores will always be supplied with what they need.

New Online Inventory Management systems

Some of those systems also have a mobile version, so each one of your employee can easily access the program. This way, the respective employee can see if a certain item is in stock, and if it isn’t he can easily find the closest work point where the respective item can be found, and he can also find a car or a truck that can deliver the respective item. Moreover, whenever the stocks are almost exhausted, the respective employee can use the system to order the respective goods from the closest deposit.

A good program of this kind has several levels of authority. This means that only some people are allowed to modify some parts of the stocks and details, while the majority of users can only visualize those goods. This way, the stocks are kept accurate, and the managers would always know which person changed the data in the program and how.

Contract Warehousing – Contract Warehouse Services

Most effective warehousing solutions

The contract warehousing companies could offer you a smart, cheap and effective method to deposit your goods and materials, under the terms of a strict contract. Many major companies preferred to outsource their operations, and if you haven’t done this since now, it is time to do it. You will surely compensate the money you spend on logistics with the economies you make from optimizing the activity.

The outsourced logistics and their advantages

The outsourcing companies in the area of logistics would offer performing storage solutions, and also transportation and support. With the help of such company, you will never have to worry about distribution ever again, and you can easily concentrate your resources towards other activities.

As the activities that you can externalize this way, you can be sure that we are talking about a large number of activities, such as depositing, transportation and inventory. Logistic management is the determining factor for the success of your activity, as it integrates all the functional and operational functions. Good logistics are real sources of advantages on the market, and this is why you should leave it on the hands of professionals.

The costs of logistics are greatly reduced for companies that decide to sign such a contract with a specialized 3PL firm, compared with the costs of buying or renting a warehouse. In the second case, you will also need a department of logistics, which is costly. This is why you could think about outsourcing the logistics matters of your company with one of those firms.

3PL Software – Third Party Logistics Software

Choosing the 3PL Software

If we are talking about investments and IT logistics, you should know that one of the most important aspects about this matter is the 3PL Software. This is the central program that would manage your entire logistics department, and without a good program of this kind, it would be really hard to track all the processes of your business.

What kind of facilities you need from the 3PL Software?

The 3PL Software must be personalized to suit your company’s needs. Especially if we are talking about a major distribution company, it is mandatory to know the stocks, to know if a truck is available, and where can you find the goods you need. A good 3PL company offers personalized solutions, and the possibility to adapt the software to any changes within the company, so the program would be viable for the years to come.

The logistics program must be able to control all the activities in the warehouse, whether those are made by people or machines. This means that, besides the software, you must also benefit of the next services:

– a system to manage the deposit
– a controlling system for the machineries
– picking system
– Special software modules designed to control the flux in the warehouse.

This program is perfect for companies that conduct their businesses in the wholesale industry, but also in pharmaceutics, logistics and mail delivery. With a system like that, a company can be called professional, and the general efficiency of the process will be greatly increased.

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