Transportation routing & scheduling
As part of managing the supply change and delivering the product to the end destination, planning will be required to ensure safe and timely delivery. Transportation, routing and scheduling is an important skillset for an organisations staff to understand and manage.
Understanding freight categories is essential for ensuring that products can be delivered within a budget and specific timeframe.
The main freight categories are:
- Less-than-truckload freight: Items for this type of category will fall within a certain type, size and weight.
- Air freight: Items for air freight may be of similar size and shape to less-than-truckload freight but the items need to move much quicker.
Logistics Provider scorecard
A logistics provider scorecard will be used to monitor the progress of the items in transit and also to grade the performance of the logistics provider. Recording performance information can help organisations to gain the best price for transporting the goods and ensures profitability.
Distribution Requirements planning
Distribution Requirements planning (DRP) is a timed process used to create efficient schedules and delivery routes for goods by deciding which goods, in certain quantities should go to a certain location in order to meet demand.
The aim of DRP is to reduce loss of profit through effective ordering, storage and transportation of goods. Key elements will include using forecast demands, assessing current stock levels and replenishment lead times.