Monday, June 13, 2011

ERP Functions: Supply Chain Management 7

Till now we discussed functions of Purchase, Stores in detail. Continuing the long chain of Supply Chain in this blog let us discuss functions of Logistics in an industry.

Logistics, some times called as Shipping Department is the crucial department which is actually connecting suppliers, customers to the industry. It is gateway between outside and inside of factory

There are two basic functions
1. Receiving of Materials/Items inside factory
2. Sending of Materials/Items outside factory

1. Receiving of Materials/Items inside factory: The materials from suppliers and subcontractors are received by the logistics department. Once the required documents are received then the material is routed to Stores Department. Important documents are LR Copy, Invoice/Delivery Challan and import related documents. Some times in emergency need cases logistics department also arranges vehicles for receiving Items from the supplier.

2. Sending of Materials/Items outside factory: Sales/Marketing Department provides the despatch plan to the logistic department. Once the Product is manufactured completely then the logistic department will arrange the vehicles, load the items. It will also prepare a document for sending the Product i.e. invoice. In case the Item sending is for subcontractor separate type document is prepared which is called as Delivery Challan.In case of export, related documents are also to be prepared to be sent with the Item.

So logistics department closely works with Stores and Sales department. In other way it is the joining point of receiving and sending points of the industry. Efficient logistic department is key for better relationship with suppliers and customers.

By this we complete the Supply Chain Management (SCM). Further we will have a brief about the progress so far in coming week then we will move ahead.

Keep watching this space

1 comment:

  1. Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.
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