How to Control Logistics Cost?

How to Control Logistics Cost? The cost reduction process is only possible by dividing the total cost into two main categories which are Variable cost and Fixed Cost. 

Fixed Cost includes Electricity, management overheads, rent of warehouse & vehicle, inventory carrying cost, handling cost, etc.

Variable Cost includes labor pay, transportation cost, material movement cost, packaging cost, labor overtime, the maintenance cost of vehicle and warehouse, etc.

The main factor to control the logistics and warehouse is to control your overheads of variable and fixed which organizations can do for cost reduction strategy to sustain their cash flow by considering the following areas:

• Labor
• Loss of stock
• Distribution cost
• Material Packaging
• Utility cost

Read the full article on below:

https://businessquora.com/how-to-control-logistics-cost/

What is the Relationship Between Accounting and Finance

Accounting 

Accounts refer to the bookkeeping of transactions which has been occurred, to maintain and record the past financial data, classification, capturing, summarizing, analysis, reporting, and presentation of financial transactions is called Accounting

Finance

Finance refers to the future planning of funds, risk calculation, and management, Capital/investment planning, future growth of the organization, forecasted revenue, sales & profit, etc. Cash flow management, decision making, payments are also part of Finance

Relationship between Accounting & Finance

The major difference in Accounting and Finance is the historical analysis done in the area of accounting and future planning is done in Finance.

The goal of accounting is to create a set of financial statements that represent accurately the financial standing of a company, at some moment in time, so they look at the economic transaction that has occurred up to this point. Accounts deal with all kinds of really complicated problems and they find ways to solve those problems when you have a complicated organization.

Read the full article on below:

https://businessquora.com/what-is-the-relationship-between-accounting-and-finance/

ERP Oracle For Manufacturing Industry

ERP Oracle for Manufacturing Industry: An ERP Oracle is a software created by a company that is also an MIS (Management information system) used in an organization to run or manage the daily business operations. To manage different organization functions such as Human Resource, Sales operations, inventory management, production planning, procurement, and Finance, and to integrate all these functions in software which also contains a Database for all the data of these functions.

There are several modules of ERP Oracle that exist and are currently being used by many organizations including the manufacturing industry. 

• Financial Purpose
• Procurement Purpose
• Risk Management Purpose
• Enterprises Performance Management (EPM)
• Supply Chain Management

To study further about ERP system for manufacturing, please visit:

https://businessquora.com/erp-oracle-for-manufacturing-industry/

Smog Blankets, US Deadly Wildfires Rage in West Coast

Smog Blankets, US Deadly Wildfires rage in West Coast, an average of around 7,500 wildfires burn an average of about 1.5 million acres on National Forests and Grasslands each year. For the last 10 years, Wildfires have been caused by these just over half 54% by humans, the remaining 46% have been burnt by lightning.

Today, the fire seasons are lengthier by 78 days than in the 1970s. A minimum of 10 states have been targeted their huge fires in history since 2000, and in this year 2020, they are more than 46,000 fires.

The Impact of US Large Wildfires on Economy

• Labor market disruptions are compensated by the employment that the destruction effort generates in the short term due to huge wildfires, wages and local employment arises during these wildfires.

To study further about US Wildfires, please visit below:

https://businessquora.com/smog-blankets-us-deadly-wildfires-rage-in-west-coast/

Importance of Global Market Segmentation

The Importance of Global Market Segmentation is defined as to introduce your products/services in the international market you have to categorize the market into different segments to decide in which market you need to launch the product.

Goals/Objectives of Market Segmentation

The main purpose of Market segmentation is to categorize your customers to offer or market the products to them according to their needs and wants. The objectives of market segmentation include focusing and comparing market opportunities by analyzing the purchasing needs of all segments and from how long these needs are being intended to be fulfilled.

 Characteristics of Market Segmentation

• A business should be able to tracks and measure customers’ classification, like demographics or usage behavior.
• Substantial demands a big enough segment to be possibly profitable.
• Should be in the reachable distance through communication and network if distribution means it should be accessible.

To study further about the Global Market Segmentation, please visit below:

https://businessquora.com/importance-of-global-market-segmentation/

 

The Concept of Vendor Managed Inventory (VMI)

The concept of vendor managed inventory (VMI), is a business model in which the buyer of a product provides certain information to a supplier or vendor of that product at the supplier takes full responsibility to maintain the certain inventory level of any SKU at the location of your buyer’s consumption; either it is a store, a third-party logistics provider (3PL) also involves in to ensure that the buyer has the required level of inventory by adjusting the demand and supply gaps.

Elements for Effective VMI (Vendor Managed Inventory)

• Integration
• Transparency
• Control

Advantages of VMI for Supplier & Customers

• The chance of error is reduced due to system to system communication along with the high speed of processing. 
• The main benefit of VMI is to make available the required product at the right time, and both parties are involved to satisfy the end customer need. 

To Study further about Vendor Managed Inventory, please visit the link below:

https://businessquora.com/the-concept-of-vendor-managed-inventory-vmi/

Promotional Activities of a Product

 

Promotional Activities of a Product means to spread awareness about your product in the market among customers and to penetrate the market to purchase your product by providing different types of offers with your product. Companies perform different types of marketing campaigns for market penetration and marketing is not just about the advertising campaign but it should be in a way that can generate revenue for you.

PRINT AND GRAPHIC MEDIA

Print media offers different options, including brochures, business cards, newspaper ads, and magazines, it depends on how you want to communicate the market. 

ELECTRONIC MEDIA 

Nowadays electronic media is a very commonly used method for marketing, everybody uses electronic media and it is very convenient to convey the message to the targeted audience.

Another Promotion Activities 

Planning of your marketing strategy is necessary to determine which activity should be conducted to promote your business and also measure the difference in revenue before and after the activity.

To Study further about the Promotional activities of a product, please visit the link below:

https://businessquora.com/promotional-activities-of-a-product/

The Effect of Integrated Supply Chain

The Effect of Integrated Supply Chain is all about integrating all the functions of any organization for the best efficiency in the supply chain to achieve the company’s vision in a modern way to enhance the business through transparency and tracking of all the data through various methods.

What is Integration?  

Supply chain management is a sequence of individual operational functions and decisions by it, make it, move it, sell it, serviced it, the luxury of studying each and a vacuum but supply chains are in fact, chains in the sense that these individual functions are interlinked and interdependent with each other.

Developing Modern Integrated Supply chain

New businesses can’t succeed by following other companies or live according to checklists they need to develop, beliefs that will guide their actions in the ever-evolving world of business.

To study further about the Integrated Supply Chain, please visit below:

https://businessquora.com/the-effect-of-integrated-supply-chain/

International Product Development Process

 The International Product Development Process is the process of introducing new products in international markets. New Product development (NDP) is the term that defines to launch and introduce new products in the fields of business and engineering. 

New Product Categories 

• The new products also introduce the new market category 
• The new product development also helps penetration in the existing market for the first time

Global Product Development & Conventional Product Development 

What are the 7 stages in the new product development process?

To study further about the International Product Development Process, please visit below:

https://businessquora.com/international-product-development-process/

What are the Global Marketing Strategies?

What are the Global Marketing Strategies? In the previous days, it was very difficult to sell products in another county and only some large scale trading companies take the risk for export. But with the passage of type, it became easier to sell products globally.

To sell out a product in the international market you will need to launch your product in the internal market by developing marketing strategies. The marketers want to launch their product across the globe in a manner that customers wait to purchase that product.

The global marketing strategy is one side of Total Global Strategy. It must include all practical aspects of a business from finance to operations to R&D. It must have clear pre-defined objectives that show where you want to go.

Further, you can read about Global Marketing strategies and its advantages in the below articles:

https://businessquora.com/what-are-the-global-marketing-strategies/

Possible Effects of Digital Marketing Strategies

Marketers looking for the ultimate digital marketing strategy need to have a clear understanding of their business, product, we believe that a digital marketing strategy is essential to take benefit of the emergent chances from digital marketing. Digital Marketing is the main type of marketing strategy which we have discussed in our other article ‘Type of Marketing Strategies’.

Structure of a Digital Marketing Plan

• Plan
• Reach
• Act
• Convert
• Engage

What is a Digital Marketing Campaign Strategy?

A good campaign makes a company memorable to its target audience — but you want to be remembered for the right reasons. This strategy needs to be realistic, achievable, and practical, based on your budget, available resources, and business objectives.

To study further about Digital Marketing Strategies, please visit below:

https://businessquora.com/possible-effects-of-digital-marketing-strategies/

What are the Types of Marketing Strategies?

What are the types of marketing strategies? First of all, we want to explain the definition of marketing strategies is all about giving awareness to the public about your products or services through different types of mediums. To keep updated the public or your customer about the products or services you offer. Now there are many types of marketing strategies used by the companies. We want to explain here the most commonly used strategies.

Types of Marketing Strategies

• Source Marketing
• Paid Advertisement
• Relationship Marketing
• Diversity Marketing
• Word of Mouth
• Transactional Marketing
• Digital Marketing
• FAQ

To study further about Marketing Strategies types, please visit below:

https://businessquora.com/what-are-the-types-of-marketing-strategies/

Fundamentals of ERP System

Fundamentals of ERP System: ERP Stands for Enterprise Resource Planning is the software to run the operations of any organization through the integration of different functions in the system. ERP has been generated to record every transaction that occurs in the organization for the tracking of every activity and transactions. ERP is configured mostly by MIS teams and there are various software and modules of ERP that exist in the market to further specify the business operations and better reporting.

SAP MM Module

MM is one of the modules in SAP called SAP MM Module, MM stands for Materials Management which refers to functions of the supply chain including procurement, inventory management, warehousing, and sales. Materials management is a process to ensure any shortage of raw material, components, and finished goods, it helps in maintaining the minimum stock which is also called buffer stock to run sales smoothly. SAP MM Module also includes monitoring of inventory, sales forecast, and current sales of each SKU which comes under MRP (Material Resource Planning). MRP comes under the production planning of Supply Chain.

To study further about the Fundamental of ERP System and SAP MM Module, please visit below:

https://businessquora.com/fundamentals-of-erp-system/

What is 3PL Model

What is 3PL Model? The 3PL (Third Party Logistics) concept is introduced for manufacturing concerns to focus on their core competencies such as the production of goods or services. For logistics matters, a third party is involved on a contract basis to perform logistics operations regarding dispatch and inventory monitoring of finished goods, raw material, and other inventory items from warehouses to customers or suppliers to organizations.

Advantages of 3PL Model:

The main advantages of 3PL are the responsibility of Packaging, warehousing, order fulfillment, distribution, and logistics on the third party, the company has to co-ordinate with them for reports and updates regarding orders delivery

Logistics Service Provider

The best logistics service provider is the one who fulfills your entire requirement on time with minimum cost with the best relationship. Some of the major points which need to be considered while hiring a logistics service provider defined in the below article.

To study further about the 3PL Model, please visit below:

https://businessquora.com/what-is-3pl-model/

Function of Value Chain Model

The Function of Value Chain Model is to increase the value of a product or service, Value chain activities throughout the product or services lifecycle such as determination of customer needs, production, distribution, marketing, and after-sales services. In Marketing, either it is domestic or Export Marketing in the case of exporting.

What is the Value Chain?

Value Chain is a process of connecting stakeholders for working together to fulfill the market needs, for specific products or services is called a value chain.

What is Value Stream?

A Value Stream is a sequence of activities required to design, produce, and deliver goods or services to the market. It may be controlled by a single business or by a network of several businesses for a product.

What is Value Stream Mapping?

Value Stream Mapping is a two-steps process, first, you have to draw the value stream map or flow of the map, your current supply chain and then you draw an improved and second, most effective flow for your product or services.

What is Porter’s Value -Chain?

Porter’s value- chain focuses on system and how inputs are changed into an output using the viewpoint described a chain of activities that are common to all businesses, and are further divided into two types of activities.

• Primary Activities
• Support Activities

To study further about the Value Chain, please visit below:

https://businessquora.com/function-of-value-chain-model/

Describe the Supply Chain Network

To Describe the Supply Chain Network the word chain derived from the network of Supply Chain which defines the whole chain in which all the business partners are involved from upward to downward and from downward to upward. From Tier-II supplier till the end consumer and then revert back to manufacturer and supplier is the Supply Chain Network.

Majorly there are type main types of Supply chain network which are being defined below:

Upstream Supply Chain

The upstream supply network involves the business partners who just focus on the manufacturing of products, it involves all the areas of the supply chain including logistics, inventory management, warehousing, planning, procurement, etc but the final target of the Upstream network is to produce a final product.

Downstream Supply Chain

The downstream supply chain is defined as the network starts from the manufacturer to the end customer, the main objective of the downstream supply chain is logistics to ensure the availability of the product to retailers and to sell to end consumers.

Reverse Logistics

Reverse logistics is introduced to claim warranties, any damage, bad quality products, and shortages. It may start from end customer to the manufacturer or from retailer to Tier-II supplier.

To study further about Supply Chain Network, please visit below:

https://businessquora.com/describe-the-supply-chain-network/

Scope of Production Planning and Control

Scope of Production Planning and Control, It is the nerve of any organization in which all the requirements come from sales and marketing received in the planning department to fulfill and execute the orders of clients with coordination of all production teams and other related departments. The requirement comes from the sales side on daily, weekly, and monthly basis are executed by the planning department.

The main functions of production planning are mention below:

• To process the orders and requirements generated from sales and marketing.
• Follow up with production teams
• Ensure material availability to all plants
• Raw material planning related to procurement
• Packaging material planning
• Generate and circulate production plans
• Plant maintenance planning (routine and ad-hoc)
• Monitoring inventory levels

Steps of Production Planning

Detailed Steps of Production planning from customer requirement until the delivery of goods to the customer is well explaining in our article "https://businessquora.com/scope-of-production-planning-and-control/".

Controlling

Controlling refers to the planning to save the cost of an organization through efficient planning along with material availability for sales timely. The main objective of Production planning and controlling is to take initiatives, firstly to available the right product at the right time and then for cost-saving through performing analysis from time to time.

To study further about Production Planning & Control, please visit below:

https://businessquora.com/scope-of-production-planning-and-control/

Defining the Scrap Sales Process

Defining the Scrap Sales Process is the secondary function of the organization in which the wastage produced from all plants during manufacturing/production, all the scrap is collected and sorted in the scrap yard for sales and updated in the inventory as well. 

The stakeholders and the documentation involved in the scrap sales process mentioned below: 

• Company  
• Finance department  
• Scrap contracts 
• Delivery order 
• Contract/agreement 
• Sales order 
• Weighment slips  
• Scrap disposal note 

Step by Step Process of Scrap Sales 

• Sorting of scrap
• Updation of inventory 
• Tender to scrap offers
• Offers for sale of scrap
• Comparison
• Negotiation
• Contract/Agreement
• Payment 
• Scrap lifting

To study further about the process of Scrap Sales in detail, please visit below:

https://businessquora.com/defining-the-scrap-sales-process/

What do you Mean by the Term Warehousing

What do you Mean by the Term Warehousing: To store raw material, Finished products, and scrap companies use warehousing also to store including damaged goods returned by customers. Manufacturers, traders, vendors, and other downstream supply chain partners own and operate warehouses.

Types of Warehousing

Using warehousing to store various types of material and commodities to fulfill the demand of different types, there are three different kinds of warehousing which are:

• Private Warehouses
• Government Warehouses
• Co-operative Warehouses

Warehouse Layout

The below points must be considered while designing a layout:

• Area of dispatch required
• Collecting/shipping area
• Area of reception
• Loading/Unloading areas
• Inventory storage area

Factors of Layout

We need to be thinking about your pick path and that tie obviously into real estate but more specifically if you have a few stages in your manufacturing process; or even in your distribution process, you need to understand what path is the most efficient and getting your goods getting back to work. Now in the first run of the state making a product shaving off a couple of minutes may not seem like a big deal, but remember we’re doing this process continues all the time, all year round hopefully so if we can save time by getting directly to the products that we need to get right back to work and get our products finished sooner.

To study further about Warehousing, please visit below:

https://businessquora.com/what-do-you-mean-by-the-term-warehousing/