According to the definition given by AILOG (Italian Logistics Association), logistics means:
The term, therefore, encompasses all operations related to the efficient handling of products, where handling also means that relating to the procurement of raw materials and components and/or spare parts, their storage within the company warehouse and, in the case of large companies, the supply of the products necessary for the various departments. Efficient logistics will make it possible to comply with the established budgets, also taking care of the packaging of goods and their distribution on schedule, through the network of retailers.
4 processes can be defined that make up the so-called Integrated Logistics.
- Incoming
logistics It defines times, costs and resources on the basis of all the production factors (financial, human, material and intangible resources) essential to the entire production chain and interconnected with each other. - Internal
logistics It concerns all the operations necessary for the connection of the various production factors, organizing and managing them so that distribution on the market does not affect the company budget and the quality of the products. In the world of e-commerce, for example, this function is performed by the blockchain, which is essential to ensure product traceability.
Distribution logistics (transport logistics)
It deals with the distribution of goods based on agreements between the company and the customer, in order to reach the reference market respecting the quantity and quality of the product ordered, methods (e.g. packaging) and agreed timing and optimizing costs. It can be managed internally or entrusted to third parties.
- Return logistics
This is the logistical process related to the recovery of returns, going back through the movement of goods by transporting them back to the original company, to a secondary relocation center (e.g. outlet) or to a disposal center.
The process related to the recovery of returns, their transport and sorting. A backward path that moves products from their final destination to a point in the distribution chain that may coincide with the original company or another node in the network, such as a secondary relocation point (outlet) or a dedicated disposal center.
The inventory turnover rate is a very important index to take into account. Rotation means how long it takes to “consume” the entire amazon FBA box label and “fill” it again. It is clear that there will be, within a warehouse, high-turnover items, i.e. items that are bought and sold often, and low-turnover items, which remain in stock for months.
It is important to know and also try to predict the rotation that an item has. A first tip is to try to limit products that have low turnover (and make them available only to order). Then it is good to put products with high turnover close to the departures and leave items with less turnover in less accessible places.
From this complexity, it is therefore evident that the logistics organization must be associated with a development strategy based on realistic objectives and concrete optimization actions. Orderly and efficient warehouse management can greatly reduce storage costs and handling times, to the benefit of the company and its customers.
Warehouse handling
Warehouse movement is used to keep the movements of goods in stock under control, detecting incoming and outgoing goods in order to consequently manage purchases and stocks. It is essential to check for any undocumented outgoings and for all accounting and warehouse operations and to assess their actual value.
It therefore takes care of the entry (loading) and exit (unloading) movements of the warehouse, thus functioning in coordination with logistics.
In addition to incoming and outgoing movements, there are some movements defined as non-ordinary, referring, for example, to goods to be disposed of because they are deteriorated, obsolete, damaged or otherwise unusable, gifts and free or discounted transfers, processing residues and waste, and
detection errors with the related reversal operations.
Every single warehouse movement must be recorded by law and every data stored and made available for any control activity, through very specific documents. Incoming goods, for example, depending on the type of product, must always be accompanied by the order and confirmation of purchase and by a DDT or an accompanying invoice.
Outgoing goods, on the other hand, must be registered on the basis of the order confirmation from the customer, DDT or accompanying invoice.
Warehouse inventory
Inventory is the detailed list of all items in stock, appropriately classified into categories and assigning each one its respective value. The total value resulting from that of the sum of all the assets recorded in the inventory will then be recorded in the company’s balance sheet, representing a cost item that affects the operating result. Inventory management must be carried out carefully and rigorously, as any errors can compromise the entire work process in the warehouse, impacting its organization.
Among the main objectives of warehouse inventory we can mention:
- identify any issues, such as spoiled products, damaged goods, missing items, or unfulfilled orders;
- plan reorders of products that are out of stock;
- check the stocks of obsolete or low-turnover items, which therefore take up unnecessary space in the amazon FBA label service with a relative waste of storage costs;
- correct inconsistencies due to human or system errors that would create problems in the budget;
- classify items according to their sales success and adopt appropriate strategies to optimize the company’s business, for example by investing in the highest turnover products;
- discover thefts or shortages of goods.
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