Companies that handle tangible products can improve business efficiency by introducing a distribution system.
There is much corporate personnel who are considering the introduction of business systems, but if the introduction of logistics systems fails, there is a risk that business efficiency will worsen.
Therefore, it is essential to follow the correct process to proceed with the introduction. This time, we will explain the types of logistics systems, the advantages and disadvantages of introducing them, and the introduction methods
for those in charge of companies considering the introduction of logistics systems.
table of contents
- 1. What is a logistics system?
- 2. Types of logistics systems
- 3. Advantages and disadvantages of introducing a logistics system
- 4. What is the specific method of introducing the distribution system?
- 5. Companies that specialize in the development of logistics systems
- 6. Introducing the logistics system takes appropriate steps
What is a logistics system?
Logistics is “physical distribution,” and in short, it means a series of flows from producers to consumers.
A logistics system is a system that is introduced to facilitate this and improve operational efficiency. It is not clear which company recommends the introduction of a distribution system, but it is better to consider introducing it in an industry with a large variety of products. It is convenient not only to improve work efficiency but also to suppress the occurrence of troubles.
Examples of industries that require logistics systems include those that handle daily necessities and food products and those that handle courier services. In addition, whether or not it should be introduced depends not only on the types of products handled but also on the operating form of the company. For example, if you are a company that operates an EC site and also manages inventory, it is preferable to introduce a distribution system.
Please consider whether to introduce a logistics system after fully understanding the characteristics and operation form of logistics in the industry.
Types of logistics systems
Even though it is a logistics system, the logistics business is wide-ranging, and it is difficult to manage all the businesses with just one system. Therefore, there are different systems for each business.
The system is roughly divided into the following three.
- Production control system: A system that comprehensively manages delivery dates, inventories, processes, and costs in product manufacturing.
- Inventory management system: A system that mainly manages the inventory status of products.
- Delivery management system: A system that manages delivery information from the shipment of goods to the completion of delivery.
● Production control system
Production control means the management of “the flow of goods and information in the process of manufacturing goods”. The production control system is a system required for the management. In the process of manufacturing products, it is important to be aware of the four elements of the delivery date, inventory, process, and cost. The purpose of introducing a production control system also changes depending on how you think about these four factors. From the perspective of the delivery schedule, if the company cannot manufacture the product as planned at the current manufacturing speed, the purpose of introducing the production control system is to manufacture the product according to the delivery schedule.
On the other hand, if you are a company that wants to increase productivity, the purpose of introducing a production control system is to shorten the delivery schedule and start the production of other products. Similarly, from the other three perspectives, it is important to set a purpose based on the current state of production control and introduce a production control system in a way that suits that purpose.
● Warehouse management system
Inventory management means “managing the inventory of products”, and the inventory management system is a system necessary for that management.
Inventory management is a business required by most companies that handle products, except those that do not have inventory. If you do not manage your products well, you are likely to have troubles such as the number of items in stock does not match, and there is a risk that you will waste time, effort, and money. Recently, consumer needs have diversified, and the types of products have increased accordingly.
Combined with these points, the importance of the inventory management system is increasing. Even if the number of product types increases, if you have an inventory management system in place, you can always check the inventory status via a web browser or your server. Since there is no need to visually check the product, it is possible to reduce the effort for processes that do not directly generate profits and to devote the source to the parts that generate profits. This will make it easier for you to improve your profits and reduce the burden on you as a worker, making it easier to work in a better working environment.
● Delivery management system
Delivery management means managing delivery information from the shipment of goods to the completion of delivery. The delivery management system is the system required for its management.
In cooperation with the delivery driver, we not only inform the purchaser of the delivery status and issue delivery instructions but also create forms for delivery and manage daily and monthly reports. Production control and inventory control are often completed only inside the company, but delivery management is a business that requires cooperation with the outside and information sharing, so unexpected troubles are likely to occur. To minimize that risk as much as possible, a delivery management system that can be operated on mobile is also utilized.
Although troubles can be reduced with the delivery management system alone, building a large-scale system that can also approach production management and inventory management will make it easier to improve the efficiency of operations and cut costs for the entire organization. Among the systems listed above, management systems and production control systems are also explained in detail on the following pages. If you are a person in charge of a company considering introduction, please refer to it.
■ What is an inventory management system? Introducing the reasons and types that should be introduced
■ What is the effect of introducing a production control system? Reasons for improving work efficiency
Advantages and disadvantages of introducing a logistics system
|Advantages and disadvantages of introducing a logistics system
|You can default the vehicle allocation plan
|Real-time management of receipt/shipment information and inventory information
|Various data analysis is possible
|Time-consuming and costly to deploy
|It takes time for the logistics system to penetrate
By introducing a distribution system, various effects can be obtained from the viewpoint of operational efficiency, cost, personnel, etc. in the process from manufacturing the product to delivering the product to the purchaser. We will explain in detail the advantages and disadvantages of introducing a logistics system in a company.
Introducing a logistics system has the following merits.
- You can default the vehicle allocation plan
- Real-time management of receipt/shipment information and inventory information
- Various data analysis is possible
The biggest benefit of introducing a logistics system is the delivery management business. In the past, business planners made their truck dispatch plans, but in the logistics management system, the dispatch plans can be installed by default, so it is now possible to cut the cost of human resources. The more efficiently the trucking dispatch plan is designed to act, the better the trucking operator’s performance.
Since this vehicle allocation plan is elaborated by the logistics management system based on the actual data so far, and efficient vehicle allocation plan can be realized at any time, and it will be possible to increase profits while cutting costs.
In addition, since you can see the receipt/shipment information and inventory status of products in real-time, it is easy to check the status even if the types of products handled increase. As much as you can save the trouble of confirmation, it is possible to allocate personnel to work that can generate profits as much as possible. Not only can you see the inventory status as data, but you can easily quantify the work time of each process and the results produced by it. As soon as the data is available, the data will be analyzed at an early stage, and the tasks that are inefficient or have problems will become clear. In that case, it will be possible to think about what measures to take for the work that should be improved without missing the time and to connect it to the execution.
On the other hand, introducing a distribution system has the following disadvantages.
- Time-consuming and costly to deploy
- It takes time for the logistics system to penetrate
When introducing a logistics system, if there are human resources who can develop the system in-house, it will be flexible to some extent, but if not, it will be necessary to outsource. In that case, it is necessary to have the system created by collaborating with the subcontractor from various viewpoints such as the needs of the company and the contents of the existing service, and the process of temporary operation is required. It may be necessary to follow the procedure of matching with the existing service content. Inevitably, the time and cost of following this procedure will increase.
What is the specific method of introducing a distribution system?
When it comes to introducing a distribution system, we will proceed with the introduction according to the following procedure.
- 1. Discovering issues related to logistics
- 2. Decision of policy for problem-solving, unification of management team, and on-site philosophy
- 3. Equipped with functions necessary for problem-solving
- 4. Installation of logistics system and setting of operating costs
- 5. Enhancement of support system
1. Discovering issues related to logistics
It is not possible to maximize performance simply by introducing a logistics management system to cut costs and improve work efficiency. First of all, it is necessary to clarify the issues regarding logistics and introduce a unique logistics system that matches them.
2. Decision of policy for problem-solving, unification of management team, and on-site philosophy
Once the issues related to logistics have been clarified, we will clarify how to approach those issues. Regardless of whether it is outsourced or made in-house, it is very important to share the issues regarding logistics and the methods of solving the issues with the creators in building a logistics management system.
Also, the person who builds the system is not always familiar with logistics. If the system is built without the client’s understanding well, some parts may feel different from what was expected. Therefore, it is better to convey in detail all the knowledge that is common sense in logistics but not common sense.
In addition to that, it is also important to reconcile the management team with the ideas of the field. Even if the logistics system that management wants is created, it can be uncomfortable for workers in the field. If you build a system without matching the opinions of the management team and the field, you will not be able to fully demonstrate its effects. Since the people in the field use the logistics system most, please set up a forum for discussion between the management team and the representatives of the field, and establish a policy for finding problems and solving problems.
3. Equipped with functions necessary for problem-solving
Once the problem-solving policy is clarified, we will clarify what functions should be installed in the problem-solving. Logistics systems can be freely equipped with the necessary functions to automate many tasks. It is possible to further expand the functions by linking with not only the distribution system but also external sites.
Since the functions that can be used are updated daily, it is preferable to install something that can automate the work more efficiently, and it is the person in charge of system construction and the subcontractor who understands these circumstances. To clarify which function is best to install, it is important to work with the person in charge of system construction and the subcontractor.
4. Installation of logistics system and setting of operating costs
Once you have decided on the functions to be installed, set a guideline for the introduction and operation costs of the distribution system. It doesn’t make sense for years to outperform the cost of a logistics system to implement it to streamline operations and make a profit. Make a clear budget and decide if you want to implement a reasonable logistics system.
5. Enhancement of support system
Once the logistics system is complete, it will take some time to master it. It is also important to have a support system in place to reduce that time as much as possible. Even if the opinions of the site are adopted, it is meaningless unless the workers at the site can use them, so it is better to create a system that can teach how to use the distribution system as soon as possible.
A company that specializes in the development of logistics systems
When it comes to outsourcing to develop a logistics system that suits your company, there is a sense of security if you ask a company that has a strong track record in developing logistics systems. Details of the 10 companies that are strong in logistics system development are summarized on the following page. Please try to reference.
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