Logistics Operations Part- 3
This is the last post on logistics functions which will cover the broad topic of inventory and storage. Warehousing the merchandise is highly important to study as it holds a lot further scope of your that transaction. Study Shipping Logistics Management at Global Export Import Management center- iiiEM.
Inventory and Storage
The systematic management of an export-import company’s merchandise is a critical logistics operation. The expenses associated with holding merchandises can easily account for 25 % or more of the value of the merchandises themselves and could promisingly create liquidity issues for many companies. In addition to this are the expenses of the storage, interest paid on rented money, and the risks of degradation and obsolescence. It is crucial to establish specific guidelines with respect to such problems as maximum holding time-period, time of cargo of inventories to the seller, and other related factors.
Acceptable levels of merchandise can still be managed to serve international customers on time without excessively increasing expenses and creating storage issues. To reduce warehousing expenses, it may be important to store products in distribution centers depended on customer requirements. Inventories that are gradual moving (no movement for 6 to 12 months) can be transported from the exporter or producer.
Suitable inventory planning and supervision will cut down the number of storage facilities as well as bearing and freight expenses.
In some cases, accumulating merchandises may have its own advantages.
In nations that have certain macro-economic issues, merchandise may be a good decision against inflation and depreciation of currency.
Global Export Import Management center like iiiEM can teach you more practically on this subject so as to better understand the topic of logistics. Practical learning is way different than the theoretical studies.
Related Post: Global Export Import Training