Distribution Strategy: Centralized Versus Decentralized

The kind of distribution strategy that you choose to incorporate into your organization can have a significant impact on your operations as well as your profit making abilities. The productivity can also be affected if the wrong decisions regarding centralization or decentralization are taken by the company management. The decision of whether to go in for the former or the latter should depend entirely on particular business needs. For certain businesses, a centralized system of distribution may work best while for certain others, a decentralized strategy may lead to the highest profits. In the case of some organizations however, a mélange of the two works best. Thus several factors need to be considered before this decision is made.

In case your company has a widespread customer base that even includes international and overseas customers, it is advisable to go in for a decentralized distribution strategy that can help minimize costs of maintaining supply chains. A centralized distribution system in such a case can prove to be highly expensive and can even make it difficult for your company to maintain profits. A decentralized system helps bring in enhanced efficiency as local dealers and distributors are more aware of the demand structures of the local populations. It is also easy for local distributors to maintain contact with the end customers and assess their requirements that can then be conveyed to the company providing products for sale.

A centralized system is deemed to be more suitable for business organizations that either have a local area of operation or are enterprises with a highly inflated capital structure and can afford to invest in their separate department of distribution and employ workers in different geographical locations to distribute goods. In such a case, the profits made by eliminating the middlemen and going in for direct distribution generally tend to be more than the investments required for supplying the products. Only companies that can afford to invest in infrastructure and technologies needed for distribution to far off locations should opt for a centralized system of distribution. A significant advantage of having this kind of a system is that the ultimate control rests with the company itself and power need not be divested to the lower levels.

For more information, contact McLane Logistics Technology located at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.

Distribution Management System - Distribution Management Software

Requisites For Effective Distribution Network Planning

Distribution network planning is a very important managerial function that needs to be performed on a consistent basis in order to ensure the maximum customer satisfaction and generating targeted sales. Distribution planning can be instrumental in determining the sales that your enterprise is able to make on a monthly or an annual basis as it is the way that the delivery of your products is organized can have a lasting impact on whether your products will be preferred by customers or not. The way that your distribution network has been set up can make or mar your business in terms of its market standing and success. Some of the requisites that need to be in place for effective distribution network planning have been specified below:

1. The number one driving factor for formulating a distribution network plan is the amount of investment that will need to be made by your enterprise to ensure timely deliveries to customers. The expenses must be justified in terms of the amount that your company is able to recover by way of subsequent sales. Transportation methods that are economical and lead to the lowest possible costs must be preferred to boost profits.
2. Another aspect that you need to pay attention to is the amount of time that is being taken for the delivery of a single product. The ideal time for product delivery can vary depending on the kind of product that you are supplying and whether you are selling to international or only domestic consumers.
3. Effective distribution planning also calls for the setting up of a supervision network that is able to keep track of the exact location of a product and is also able to provide such information to the intended customers who wish to track their shipments. There are several ways to do so one of them being appropriating a unique tracking ID to each product so that customers are able to find out the scheduled time of delivery just by logging on to your business website. This not only helps build trust but also leads to higher levels of customer satisfaction.

For more information, contact McLane Logistics Technology located at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568. 

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Meeting Customers Demand

Managing inventory in an appropriate manner can be instrumental in determining the level of satisfaction showcased by your customers. Efficient inventory management practices are indelibly bound up with customer satisfaction as maintaining adequate stock for effecting sales is a pre requisite to fulfilling the demands of customers.

The inventory management practices followed by your company must take into account the demand trends showcased by customers. Several factors have to be taken into consideration to judge and foresee the future demand for a particular product. It is not only essential to make the right kind of products available to your customers but is also equally important to make them available at the right time.

Several studies relating to the measurement of customer habits suggest that if a certain company is unable to meet their demands regarding a particular item, customers showcase a tendency to quickly shift to competitors who are able to provide a similar item. This in turn leads to huge losses for your company. Customers can even switch loyalties when you are unable to provide the required quantity of items in a specified time on account of low availability of stock. Most customers prefer to meet the gap in the quantity that they originally asked for and the quantity supplied by looking for alternate suppliers.

This makes it essential for businesses to come up with effective mechanisms to keep adequate inventory levels and replenish their stock on a regular basis as per customer demands. However, the maintenance of adequate inventory levels does not mean purchasing an excessive amount of inventory than what is required to meet the needs of the market as this can lead to adverse results.

There are several different techniques that can be used to measure the right amount of inventory for your business, for example, by dividing the number of stocked items shipped by the date or delivery communicated to the customer divided by the total number of items for which the order was actually placed. There are many such methods that can help arrive at an inventory figure using scientific techniques. Thus, inventory decisions must be based on logic and statistical analysis rather than on mere guess work.

For more details, contact McLane Logistics Technology, 4001 Central Ponte, Parkway, Temple, TX 76504. You can also call us at 1-800-989-7568.

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Improper Distribution Management Can Increase Your Costs

Distribution management is a process that involves the distribution of inventory at all levels. For any manufacturing or trading firm, managing the distribution of products being provided for sale at retail locations is of prime importance. There is generally a separate department to look after this process in every company irrespective of whether it is large or small. Appropriate distribution management forms an essential part of functioning of a successful organization. If inventory is not managed efficiently and effectively, it generally leads to wastage and loss of goods that turns out to be harmful for the company’s interests. It can also lead to non-fulfillment of delivery timeliness.

Although it is felt by some managers that distribution management is an expensive function, it actually leads to huge savings in the long run. This is because the monetary advantages that can be reaped by allocating inventory to the right place at the right time far outweigh the costs involved in training personnel for affecting this process. It may require a certain amount of resources and manpower initially to bring about effective distribution management but the results are clearly visible by way of increased profits that are inevitable as a result of this process. Some of the reasons why improper distribution management can increase your costs have been mentioned below:

1. If an effective and transparent method of distribution is not developed, it may lead to pilferage of goods as there are no checks maintained on inventory levels during different stages of production.
2. Improper distribution management also leads to escalated costs in the long run as firms can miss out on making sales as a result of having a lesser amount of stock than is demanded in the market. Proper distribution management on the other hand consists of various tools that help assess the correct levels of demand and thus help provide the required amount to customers. This ensures that equality is being maintained in the quantity of goods demanded and supplied.
3. Improper distribution management can lead to huge correction costs that may need to be incurred whenever anything goes wrong in the distribution process.

For more details about the distribution management Systems, you can contact at McLane Logistics Technology, 4001 Central Pointe Parkway, Temple, TX 76504 or call 1-800-989-7568.

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Transportation: Trailer Loading Techniques

The loading process is probably the most underestimated while also being the most vital process while transporting goods. There are all kinds of trailer loading techniques that have gained followers in the business industry with different companies opting for different methods as per their convenience. The kind of trailer loading technique that you go in for primarily depends on the kind of parcels that you wish to load and deliver to your customers. It also depends on the method of shipping being followed. Some of the popular ways of arranging box shaped parcels include straight loading, loading pallets turned and pin-wheeling. All three methods come with their own unique advantages and companies use either one of these depending on the kind of safety that they wish to achieve for their parcels.

The loading process is the most crucial one in the supply chain process because of the possibility of damage that may be caused to the parcels being delivered while in transit. Irrespective of the shipping method used including road transport, ships or air freight, the risk regarding the parcels remains the same in each case. Although it is not possible for companies to keep a track of each stage in the delivery process or oversee this operation, it is possible to take certain steps to mitigate the possibilities of damage and destruction by following appropriate packaging and loading processes.

The loading process should be chosen keeping in mind the amount of time that you wish to devote to this process. If you want this process to be quickly completed, you can opt for the use of wheeled containers that are easy to roll onto any vehicle that has a ramp attached to it. There is no need of additional manpower to help pick up or haul the items to be transported onto the vehicle that is going to take them to their intended destination. This can be highly useful in cases where the parcels involved are quite large and heavy and can take a considerable amount of strength as well as time for being loaded.

For effective and user-friendly transportation solutions, contact McLane Logistics Technology, 4001 Central Ponte, Parkway, Temple, TX 76504. You can also call us at 1-800-989-7568.

Distribution Management System - Shipping Management Software

Importance Of Transportation In Business

A smart businessman always makes the best out of the given choices. Regardless of the capital he has or the region in which has his business, his primary aim is always to make the production process run well and generate sales. We all know that the business does not start or end within an industry. The prior requirement is to get the raw materials to the industry and at the end deliver it to the customers. Transportation system caters to this need of the business.

Role of transportation in a business:

• A good transportation system proves to a great asset to the firm as it ensures the timely shipment of the commodities. It can also be called as the backbone of an industry. On the other hand a poor transport management can prove to be disastrous for the firm and lead to losses.
• If a consignment is not delivered on time, apart from capital loss, it leaves a bad impression on the client which may further hamper the future deals with him.
• Transport is not just restricted to the roadways but includes the airways, waterways and the railways as well. Based on the distance, budget and time, the mode of transport is chosen by the entrepreneur.

How to choose the right transportation partner?

While deciding on the transportation partner, you must always look for a partner and not merely a transporter for his business. There are certain requirements you must keep in mind the certain criteria such as its reputation in the market, its work experience, reliability, and the firm must also assure a quality service with the contracted price.

Having a good transport management system in your firm is very beneficial as it reduces the chances of errors and a smooth transportation. It keeps a thorough check on the transportation from the very first step to the final step. It keeps your tasks organized and enable a proper system of shipment of goods.

Mclanetech Logistics Technology provides reliable and customized distribution management/ supply chain management/ logistics management software to give your business an edge over competition. For more details visit Mclane Logistics Technology at 4002 Central Pointe Parkway, Temple, TX 76504 or call at 1-800-989-7568. 

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What is Warehouse Management?

Warehouse Management System (WMS) refers to the software application that manages the day to day operations in a warehouse. A warehouse is a commercial building used for the storage of goods, which are used by manufacturers, importers, exporters, wholesalers, transporters, and customs etc. WMS software enables the centralized management of tasks such as tracking inventory levels and stock locations. This software can be stand alone system or a module of an ERP (Enterprise Resource Planning) system.

Earlier, WMS provided only the storage location functionality, but, the current applications provide complex and data intensive solutions to the working of the warehouse. These high-end systems include the tracking and routing technologies such as RFID (radio frequency identification) and voice recognition.
The market today, has emerged to the traditional WMS becoming an important point solution within the supply chain planning and execution applications

Need and Benefits:

The goal of WMS, simply, is to provide the information to the management so that it can efficiently control the movement of the goods within a warehouse. Over the years, WMS market leaders have expanded the scope of their product offering to include diverse range of applications:

• Demand planning
• Network order management
• Yard management
• Inbound and outbound transportation optimization
• Labor management
• Supply chain visibility
• Event management

These applications have enabled the traditional WMS to move beyond the four walls of the warehouse, into the global supply chain arena. The market has embraced these solutions as they enabled to gain more control over the entire supply chain cost structure.

An efficient WMS is capable of improving operations, streamlining processes, enabling better customer service. Enormous benefits can be derived from installing a state if the art WMS.

McLane Logistics Technology provides you with “Warehouse 3g “, the Ultimate Warehouse Management System. It is built upon the bedrock of over 100 years of distribution experience and it provides a robust feature set and improved functionality that has increased the efficiency of the warehouse dramatically.

For more details about the Warehouse management technology visit McLane Logistics Technology, Central Pointe, Parkway, Temple, TX 76504 or call 1-800-989-7568. 

Distribution Management System - Warehouse Management Software