Reverse Logistics Process Formalization

Reverse logistics is the process of planning, implementing and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing or creating value or for proper disposal. Despite the growing recognition of the importance of reverse logistics, many companies are not ready to meet the challenges involved in handling returns. The rapid growth in the volume of returns far outpaces the abilities of firms to successfully manage the returns. Because of all the uncertainties involved, reverse logistics program development and implementation becomes very complex.… Read the rest

How Logistics Productivity Improvement Affects the Economy as a Whole as well as the Position of Individual Consumer?

Generally logistics refers to the inbound and outbound flow and storage of goods , services, and information within and between organisations. The Council of Supply Chain Management Professionals (CSCMP), which is the pre-eminent professional organisation for academics and practitioners in the logistics field, formed in 1963, defined logistics management as ” that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods ,services, and related information between the point of origin and the the point of consumption in order to meet customers requirements “.

Logistics Productivity Improvement and the Economy

Logistics has become an enormously important component of the gross domestic product (GDP) of industrialized nations and thus affects the rate of inflation, interest rates, productivity, energy costs and its availability and other aspects of the economy as well.… Read the rest

Concept of Shipping Conferences in Logistics

The conferences are association of companies, resembling an ordinary cartel or  trust, formed to control supply and prices and to limit entry into the trade. The Royal  Commission  of 1909 defined  Shipping  ring or conference  as ‘a combination, more or less close of shipping companies  formed for the purpose of regulating or restricting competition in the carrying trade on a given trade route or routes’. Shipping  Conferences are formed only in a line trade  and not in the tramp service, because the former is a more stable and regular  organisation. Since the conferences are made for particular routes only, a shipping  company may join many conferences on different routes.… Read the rest

Competition in Shipping Industry

Shipping is a competitive industry. The demand for shipping services is a derived  one. Shipping services do not have alternative applications. So amongst ship owners  competition arises to corner the existing traffic. The causes for the competition are  as follows:

  • Freedom of use of a certain highways:  The permanent way of ocean being a gift of  nature, which is free. It is open to all persons and countries of the world without  acquiring any rights to float the ships and steamers. Except for some restrictions  in coastal waters of the countries, the ship are free to move anywhere on the sea  and it invites international competitors.
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Warehousing Function of Logistics

A warehouse is a location with adequate facilities where volume shipments are  received from a production  center, broken down, resembled into combinations  representing a particular order or orders and shipped to the customer’s location or  locations. The rationale for establishing a warehouse in a distribution network is the  creation of a differential advantage for the firm. This advantage accrues from  achieving a lower overall distribution cost and/or obtaining service advantage in a  market area.

The concept of a distribution warehouse or a distribution  center  is vastly different  from the earlier concept of a godown for storage. The need of that system is sue to

  • Ensuring protection against delays and uncertainties in transportation arising  from a variety of factors.
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Concept of Export Packing

The aim of every exporter must be to ensure that the goods arrive safely in the hands of the consumer. The fact that the goods are fully insured is in excuse for not bothering to check whether damage or pilferage occurs during the transit. Whilst the payment of the insurance claim may satisfy the buyer financially, it will not satisfy him mentally. The buyer orders the goods because he can sell them, before the vessel arrives. If he receives only a part of what he has handed in a salable condition, he will probably lose the goodwill of his customers and, in consequences, will blame the exporter.… Read the rest