Logistics Challenges Of Mondi

Motor carriers have traditionally had the highest variable costs given their reliance on fuel and the continual maintenance of vehicles. The cost structure of motor

Transport by rail or road is a cost-intensive component and amounts to almost 15-20 per cent of the delivered cost to the consumers. The railway tariff is high and need to be rationalised for an essential product like cement. Road transport on the other hand, provides limited alternative because of inadequacy of road network and rising cost of road transport due to continuously rising fuel cost. Inland water transport is eco-friendly and cheap mode especially for bulk commodities like cement. Coastal shipping and inland waterways will help in bringing down the transportation cost.

Infrastructural improvements have lowered transportation periods from industries to marketplaces. Factories enjoy cheaper and more reliable delivery services and reduced operating costs due to improved transport features, for instance, use of electricity in trains. The firms can, therefore, increase their production as the distribution of goods is

The second types of inventory methods to value its inventory that CVS uses is the most common one used for most business the First-In, First-Out (FIFO). First-In, First-Out (FIFO) is defined as the first inventories bought are the first ones to be sold. CVS only uses FIFO for Some Retail Pharmacy and Rest of Business (Front store). CVS utilizes this method because; the fresher products have to be out the door first. Also, FIFO is an easier method than Weighted Average Cost. And most importantly it may over inflate cost because the last products bought and out the door first are usually the most expensive products.

Logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics support. 'Logistics ' is the management of the flow of resources, not only goods, between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics is one of the main functions within a company. The main targets of logistics can be divided into performance related and cost related. They are high due date reliability, short delivery times, low inventory level and high capacity utilization. But when decisions need to be made, there is always a trade off between these targets.

The POS is a great indicator of items in stock and knows when to order more stocks of the items. Every time any item is sold, POS updates the server and the inventory amount changes. Remember that POS system is the location where a transaction or checkout takes place. POS systems are able to track the internal stock and automatically schedule the replenishment stock from external sources. This inventory management is an important part of Information Systems. Inventory management is mainly about specifying the size and placement of stocked goods. Inventory management is also required at different locations of the supply chain; this encompasses everything from replenishment lead time, carrying the cost of inventory, inventory and demand forecasting, inventory valuation, inventory visibility, price forecasting, quality management, and returns of defective goods. The inventory management needs to be handled in the efficient manner as it is

The present organizational chart of the SC Department in the company includes two buyers, one material control clerk, one expeditor and two shipper/receivers. This structure was functional to the previous strategy because there was a strong focus on the purchasing function. We believe that in order to maximize the SC Department resources in accordance with the new structure the positions and functions of the people with the SC Department will have to be adapted to strengthen the inventory management function of the company. There company could benefit from having one person responsible for forecasting demand. Processes should be reviewed to ensure that the SC Department has sufficient access to information in order to achieve this task. Re-buying will also be of utmost importance now in order to ensure that there is always sufficient inventory to maintain production going.

The inventory and production departments also have issues. Currently, inventory is done by the receiving area supervisor confirming the shipping documents against incoming orders by hand. This allows for human error and is not a quick or efficient way to do inventory. The same process is used when production takes items from inventory. The inventory system is only updated once daily when new raw materials arrive and then again once daily from production when the raw material is used. The lack of tracking and checking in a timely manner leaves the organization’s processes at a higher risk of failure. The inventory system does not currently communicate with the sales or with the Finance and Accounting applications. This may lead to a

All retailers have a common goal in mind, and that is to make a profit. Companies earn a profit by first connecting customers with products, which can lead to an exchange of product for money. Without the ability to connect customers with products, no money exchange is possible and no profit is earned. It is, therefore, immensely important for retailers to have the right products, in the right quantities, at the right locations, and at the right time. Inventory Management Systems provide companies like L.L.Bean with the necessary information to achieve just that. L.L.Bean’s advanced inventory management system (IMS) connects customers with products, irrespective of the location of the product or the customer (Hoffsess, 2015).

Rather than simply control supply and materials to come up with an effective inventory control system, it fully integrates the computerized information to feed into all aspects of the company. Thus, accounting, human resources, facilities and finance have access to information about the upcoming needs of the company. A shared database of common information is available to all and therefore allows for a coordinated approach to managing the company.

FIFO is the procedure of first inventory received would be the first inventory to be sold. FOFI would be the process of last inventory received would be sold first ,accounting

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

(FIFO) policy, minimum stock reorder for each item and periodic stock evaluation. One of the

The first in, first out (FIFO) method of inventory valuation is a cost flow assumption that the first goods purchased are also the first goods sold. In most companies, this assumption closely matches the actual flow of goods, and so is considered the most theoretically correct inventory valuation method. The FIFO flow concept is a logical one for a

Transportation is a key element in the logistic chain. It joins together those components that are considered to be separated. In order for transportation and logistics to work together successfully, there must be good management between them. It plays a