The first logistic activity begins from order processing that is usually related to the commercial department of any organization. It is that department which ensures that the delivery terms and the payment terms have been met by both the parties and subsequently, then processes for the required order.
Material handling is often referred to as the movement of goods that is required within the ecommerce fulfilment services. It means that the material is to be handled in such a way that the warehouse can accommodate order processing easily and efficiently. It may sound like an ordinary task to you, but it is one of the most important logistics activity conducted by an organization.
Let’s take the example of Samsung; it is that company which produces consumer durable goods that is present in various countries all over the world. The manufacturing of Samsung products may be at one destination however, the distribution of its goods is conducted all over the world. It is due to this reason, warehousing in Auckland plays a massive role and is considered to be one of the primary logistics activities. The thing to ponder over is the fact that a warehouse must be somewhere nearby to the distributor’s place or the deals place through which the facilitation of goods to the customers can be easily done when demanded.
Inventory control should be properly managed by an organization. If the company for example is producing 100 units of any stock but the demand for that particular stock is only 10 units then this mean that the company is inefficient and is over producing the goods. The company which is doing this act is uselessly investing in those 90 units and the money that is used in producing those excess units can be used as a working capital money for more efficiency of operations.
One of the major activities of logistics include transportation. Transportation is considered to be one of the most expensive activities here mainly due to the fact that a heavy amount of fuel whether petrol, diesel or gas is used to transport goods form one place to another. Most of the companies spend a lot of money to maintain and control the transportation expenses as it is one of the highest variable expenses for any organization.
Lastly, there are two types of packaging; one that is displayed on the shelf seen by the customer which attracts them into purchasing the product and the other one is transport packaging where the goods are packed in bulk quantities for the purpose of transportation to avoid any spillage or breakage or any damage to the goods.