In an organization environmental factors influence decision making at all levels and warehouse is no exception. Tax structures and other governmental rules and regulations will influence the movement of goods from supplier to factory and factory to consumer. The basic rules and regulations will remain same but the rates, tariff and materials affect change from year to year.
Customs duties and sales tax account for a major portion of government revenues.
The warehouse in charge must be aware of these in order to function effectively have the economic advantage of stocking and not stocking.
Business logistics management aims at delivering material in production areas and finished goods to ultimate consumer by better freight management.
These activities cover the functions of incoming material, transportation, warehousing, material handling, stock control, order processing, supply scheduling and distribution of finished goods.
An efficient logistics system is one which handles the flows of inputs of raw materials into the production shops and the flow of the finished products to the customer according to plan with benefits greater than cost.
The packaging to be as acceptable for the consumer and easy to handle, transport and distribute, deliver to the customer. Product must be available for buy when customer wants at the merchant location.
Storage automatically assumes importance because of the time lags between completion of manufacturing and packaging, between the packed state and loading in to the carrier and between unloading at the destination and final delivery to the customer. Efficient management requires the time lag to reduce as minimum as possible to keep the distribution channel full and at the same time to minimize the costs. This is what exactly reduction in queuing. Time is money. Distance you cannot reduce, but time to travel can. This will reduce Inventory carrying and associated costs.
A total solution considering all the factors is the need in relation to the following areas:
Space cost economy in warehouses, labor economy in handling, transportation efficiency, reduced working capital investment, accurate forecast and control of costs, marketing efficiency and customer satisfaction.
Incident based documentation is the effective measure for a better functioning of the store.
On time, every time.
Right at fist time, every time and no rework.
No short cuts.