Inbound Order Management – What is role of Logistics ?
” Effective Execution of Procurement strategy ultimately depends on Logistics ”
Inbound Logistics – A Group whose responsibility are defined for moving materials from suppliers or Vendor into production Process or storage Facilities. The Inbound Logistics team often work with professional who specialize in procuring all the things needed to manufacturer a product & Transportation of products to customers.
OK ..Lets Talk something more on Procurement. Because in Inbound order management they are more Involved.
some think that Procurement is similar to purchasing and Finding Right suppliers for a product. But Scope of Procurement is vast.
It Involves planning , Purchasing ,Inventory control, traffic, receiving , Incoming Inspection & Slavage operation. In one line – Procurement ‘s Purpose is to integrate materials flow according to Requirement & Logistics is tasked with moving of those Raw Material..
But for any Procurement Supplier is a key. You need to have a reliable group of supplier with that goal many organization embed a supplier relation ship management Strategy. It is a comprehensive approach to managing an enterprise’s Interaction with the organizations that supply goods and services.
GOALS OF SUPPLIER RELATION MANAGEMENT – What is need to USE this strategy.
– Product Flow – Speeding the Physical movement of raw materials and components from the suppliers to the end customer.
– Service Flow- Improving Productivity ,reducing cost and providing additional value through online ordering , order status tracking , Electronic transfer of payabales , Advance shipping notices
-Information Flow – Decreasing the redundant transmission of critical information up and down the channel. This Require that suppliers function as Integral partners from the time an order is places so that they are aware of demand schedules, Inventory Supply Levels.
By Adopting SRM Focused strategy – A Manufacturing Firm can transform the way it interacts with their suppliers on daily basis, SRM foster Stronger ,co-operation ,Communication and partnership with key suppliers.
Procurement write purchase order – Work Order is created – Logistics Creates shipping order – Po status monitoring – Po receipt & Materials Inspection – Order Close out.
There is a lot of Important aspects in Inbound Order Management process !!! I will continue this series in my next blog.
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