Logistics is the orchestration of goods, activities, and processes between manufacturers and consumers. Timeliness and efficiency are the keys to all these movements through many means of transportation; such as rail, boat, truck, and airplane.
For example, the transition from truck to boat to rail is a major challenge for logistics because of the complex processes between these vehicles.
The flow of goods is dramatically affected even with the smallest interruptions. This can cost a company millions of dollars in lost revenue. As a result, Logistics is considered an essential service in many countries.
In a company’s warehouse, boxes and pallets were piled up everywhere with no Bin Management system. Instead, the shipping manager had improvised his own method, based on box recognition. A nightmare ensued when shipments arrived and orders needed to go out the same day. There was a lot of confusion but for the most part, somehow orders for customers left the dock. Sales people were frustrated because their commission cheques were being paid two months after the order was sent. Customer service representatives were annoyed because they had to look in multiple databases to find where the order was in the sales process.
Massive legacy systems required daily maintenance to keep them operational.
•Orders were written on carbonless paper.
•Multiple application databases from different departments were not integrated into the network.
•The culture was one of apathy due to the inefficiency and confusion.
•Senior team’s primary interest was focussed on expanding product lines to increase market share.
•Sales orders were handed in every week for processing.
•Change order process was complex and not seen in time before orders went out.
•Lack of pallet management was costing money.
Sales reps were able to enter their orders immediately.