Friday, September 26, 2008

Efficient Logistic Practice

Logistic management is a very vast subject and it plays a vital roll to serve the customers and also to manage the procurement practice. In this topic I would like to focus on the role of logistic management in procurement.

There are many mode of logistic through Air, Sea, Road and Railways. We have to clear in our mind that what mode can be adopted. Time has it's own role to play and the cost factor is also one criteria we can not ignore. Choosing a mode which is most suitable should be of that kind which is efficient in term of Time, economical in terms of price factor and also we should take proper measure to ensure the safety of the good to be transported.

To transport Bulk items logistic through Sea is the most economical and efficient. Then next comes Railways and then Road. Logistic by air is the most efficent in terms of time but it very expensive. This mode is been adopted for limited quatity and mostly in the case of critical condition where accute requrement is there.

One should decide what mode of transportation to be adopted depending upon the want of the time. There are few factors which may be considered as the key to decide the mode of transportation to be adopted.
  • Type of goods to be transported. In this, if you you consider the goods in bulk; it's almost preferred the transportation through Sea if the service is available. If not Transportation by through Road by Rail or Lorry. In the case of rail again there are factors like availability of Railway Siding facility at the loading as well as unloading point. If this facility is not available, than the overhead will add up to cost you more.
  • In the case of domestic procurement, due to various reasons, transportation vide road is almost the only option as this the most economical and efficient provided the time factor is in favour of you.
  • For procurement of limited quantity, if the time factor is acute in nature, than logistic through Air is the only option. one should have to always study the type of requirement for selecting a suitable mode of transportation.
Calculation of time, cost and downtime are the factors which dictates the mode of logistic to be adopted. From all other factors, DOWNTIME analysis is very crucial. One need to study and cope the situation by understanding the downtime.

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