Marketing and Sales

What Must an Entrepreneur Do After Creating a Business Plan?

Last Modified: 26 March, 2023 Leave a Comment

Entrepreneurship is a complex and dynamic journey, and creating a business plan is only the first step in this journey.

After creating a business plan, entrepreneurs need to take various steps to bring their business idea to fruition.

What Must an Entrepreneur Do After Creating a Business Plan? — What Must an Entrepreneur Do After Creating a Business Plan

It serves as a roadmap to guide the entrepreneur through the various stages of starting and growing a business. However, having a business plan alone is not enough to ensure success.

Creating a business plan is just the beginning. To turn your plan into a reality, you need to take action and follow through with your plan. With persistence, hard work, and determination, you can build a successful business.

Essential Steps to Take by an Entrepreneur After Creating a Business Plan

In this article, we will discuss what entrepreneurs must do after creating a business plan.

1. Refine the Business Plan

Creating a business plan is not a one-time task. After creating the initial business plan, entrepreneurs should revisit and refine it.

A business plan is a dynamic document that should change as the business evolves.

Entrepreneurs should review their business plans regularly and update them as necessary.

The business plan should reflect the latest information about the market, customers, and competition.

The entrepreneur should ask questions such as:

Is the plan feasible?
Does it align with my vision for the company?
Are the financial projections realistic?
Are the timelines achievable?

By answering these questions, the entrepreneur can identify any gaps in the plan and make the necessary adjustments to ensure that it is solid and viable.

2. Set Clear Goals

Setting clear and specific goals is a critical next step in the process.

Goals help entrepreneurs focus on what they want to achieve and provide a roadmap for how to get there.

The goals should be specific, measurable, attainable, relevant, and time-bound (SMART). These goals should be aligned with the objectives outlined in the business plan.

They should also be broken down into smaller, achievable steps that can be accomplished within a reasonable timeframe.

3. Conduct Market Research

After creating a business plan, entrepreneurs need to conduct market research.

Market research helps entrepreneurs understand the market, target customers, and competition.

It also helps entrepreneurs identify gaps in the market that they can exploit.

Entrepreneurs can conduct market research by using various methods such as surveys, interviews, focus groups, and online research.

4. Establish a Legal Structure

Entrepreneurs must choose a legal structure for their business.

This could be a sole proprietorship, partnership, limited liability company (LLC), or corporation.

Each legal structure has its advantages and disadvantages, and an entrepreneur should choose the one that best suits their business goals.

5. Obtain Necessary Permits and Licenses

Depending on the nature of the business, an entrepreneur may need to obtain permits and licenses from the government.

This could include a business license, tax identification number, zoning permits, and health and safety permits.

It is essential to research and obtains all the necessary permits and licenses before starting the business to avoid legal issues.

6. Identify Key Performance Indicators (KPIs)

Once the goals are in place, it’s essential to identify key performance indicators (KPIs).

KPIs are metrics that measure how well the business is performing against its goals. They can be financial, operational, or customer-related.

Examples of KPIs include revenue growth, customer acquisition, and customer retention.

By tracking KPIs regularly, entrepreneurs can stay on top of their progress and make adjustments as necessary.

7. Set up Your Workspace

Whether you are working from home or renting office space, you need a workspace that is conducive to productivity and creativity.

Set up your workspace with the tools and resources you need to run your business efficiently, such as a computer, internet access, a printer, and office supplies.

8. Develop a Marketing Strategy

Marketing is essential to the success of any business.

Entrepreneurs should develop a marketing strategy that outlines how they will reach their target customers.

The marketing strategy should include the channels they will use to reach their customers, the message they will convey, and the budget they will allocate to marketing.

9. Secure Funding

Funding is crucial for entrepreneurs to start and grow their businesses.

After creating a business plan, entrepreneurs should explore different funding options such as loans, grants, and investors.

Entrepreneurs should prepare a pitch that highlights the potential of their business and the returns investors can expect.

10. Register the Business

Entrepreneurs need to register their businesses with the relevant authorities.

Depending on the type of business, entrepreneurs may need to register with the local or state government, obtain a business license, and register for taxes.

Entrepreneurs should also obtain any necessary permits or certifications required by their industry.

Essential Steps to Take by an Entrepreneur After Creating a Business Plan

11. Build a Team

Entrepreneurs cannot build successful businesses alone.

After creating a business plan, entrepreneurs should build a team that can help them execute their plan.

The team should have the skills and expertise required to run the business successfully. Entrepreneurs should hire employees, consultants, or advisors who can bring value to the business.

12. Hire staff

As your business grows, you will need to hire staff to help you run the day-to-day operations.

Depending on the size and nature of your business, you may need to hire employees, contractors, or freelancers.

Be sure to thoroughly vet potential hires and ensure that they have the skills and experience necessary to contribute to the success of your business.

13. Set up Operations

Entrepreneurs need to set up operations to start their businesses.

Operations include everything from finding a location, setting up a website, developing a product or service, and creating processes and procedures.

Entrepreneurs should create a plan for how they will operate the business and ensure they have the resources to execute the plan.

14. Execute the Plan

The final step is to execute the plan. This involves putting all the pieces together and making the business a reality.

Entrepreneurs should be prepared to work hard, stay focused, and be flexible as they navigate the ups and downs of starting a new business.

By following the plan, staying on top of KPIs, and making adjustments as necessary, entrepreneurs can bring their vision to life and achieve their goals.

15. Launch your Marketing Campaign

Once you have secured funding, registered your business, and set up your workspace, it is time to launch your marketing campaign.

Your marketing campaign should include a mix of digital and traditional marketing strategies, such as social media marketing, email marketing, print ads, and events.

Be sure to target your marketing efforts to your ideal customer and track the results of your campaigns to adjust your strategy as needed.

16. Launch the Business

After completing all the necessary steps, entrepreneurs should launch their businesses.

Launching a business involves executing the plan, marketing the business, and attracting customers.

Entrepreneurs should monitor the performance of their businesses and make adjustments as necessary.

17. Monitor Your Progress

As your business grows, it is essential to monitor your progress and track your results.

Regularly review your financial statements, sales reports, and customer feedback to identify areas that need improvement and opportunities for growth.

Use this information to refine your business plan and adjust your strategies to stay competitive in your industry.

18. Build a Strong Online Presence

In today’s digital age, having a strong online presence is essential for any business.

After launching your business, you should focus on building a website that accurately reflects your brand and offers a great user experience. Your website should be mobile-friendly, easy to navigate, and optimized for search engines.

You should also consider creating profiles on social media platforms such as Facebook, Twitter, Instagram, and LinkedIn.

This will help you connect with potential customers and build relationships with them over time.

19. Build Your Brand

Building your brand is an ongoing process that starts with your business launch.

Your brand represents your company’s values, mission, and personality.

You should focus on creating a consistent brand identity across all channels, including your website, social media, packaging, and advertising. This will help you establish credibility and attract more customers.

20. Network and Collaborate

Networking and collaboration are essential for the growth of any business.

As an entrepreneur, you should attend industry events, join business groups, and connect with other entrepreneurs in your field.

This can help you stay up-to-date on industry trends, gain new ideas, and potentially form partnerships that can benefit your business.

21. Embrace Technology

Technology can help you streamline your business operations, improve efficiency, and reach a wider audience.

After launching your business, explore new technologies that can help you achieve these goals.

This may include using online marketing tools, implementing a customer relationship management system, or adopting cloud-based accounting software.

22. Develop a Long-Term Strategy

Finally, it is important to develop a long-term strategy for your business.

This should include setting realistic goals, developing a timeline, and creating a plan for achieving your objectives.

Your long-term strategy should also be flexible enough to adapt to changes in the market or your business environment.

23. Focus on Customer Service

Your customers are the lifeblood of your business, so it’s important to focus on providing great customer service.

This means being responsive to their needs, addressing their concerns quickly and effectively, and going above and beyond to exceed their expectations.

You should also encourage feedback from your customers so you can continually improve your products and services based on their needs and preferences.

24. Focus on Sales

After the business launch, entrepreneurs should focus on generating revenue through sales.

This involves developing a sales strategy and identifying potential customers.

Entrepreneurs should also focus on building relationships with customers and establishing trust.

This can be achieved through excellent customer service, providing valuable information, and engaging with customers through social media platforms.

25. Monitor Financial Performance

As an entrepreneur, it’s important to keep a close eye on your financial performance.

You should regularly monitor your income, expenses, and cash flow to ensure that your business is profitable and sustainable.

You should also develop a budget and stick to it to avoid overspending or running out of money.

By staying on top of your finances, you can make informed decisions about the future of your business and ensure its long-term success.

26. Stay Flexible and Adapt to Change

The business world is constantly evolving, and as an entrepreneur, you must be willing to adapt to change.

This means staying up-to-date with industry trends, listening to customer feedback, and being open to new ideas and opportunities.

You should also be willing to make changes to your business model, products, or services if necessary to stay competitive and meet the evolving needs of your customers.

27. Keep Learning and Innovating

The business landscape is constantly evolving, and entrepreneurs must keep up with industry trends and new technologies.

After launching the business, entrepreneurs should focus on learning and innovating to stay ahead of the competition.

This includes attending industry events, reading industry publications, and networking with other entrepreneurs.

28. Develop a Long-Term Strategy

Finally, it is important to develop a long-term strategy for your business.

This should include setting realistic goals, developing a timeline, and creating a plan for achieving your objectives.

Your long-term strategy should also be flexible enough to adapt to changes in the market or your business environment.

Conclusion

Creating a business plan is only the first step in the entrepreneurship journey. After creating a business plan, entrepreneurs need to conduct market research, develop a marketing strategy, secure funding, register the business, build a team, set up operations, and launch the business.

Entrepreneurship requires dedication, hard work, and persistence. Entrepreneurs must be willing to adapt to changes and overcome challenges to build a successful business.

Once you have developed your business plan, it is time to take action and turn your vision into a reality. By following these essential steps, you can set yourself up for success and build a thriving business.

As an entrepreneur, it is important to focus on evaluating and adjusting your business, building your brand, expanding your customer base, networking and collaborating, embracing technology, and developing a long-term strategy.

Remember, entrepreneurship is a journey, not a destination. Keep learning, growing, and adapting as you build your business.

17 Key Elements of Customer Service (With Example)

Last Modified: 20 September, 2020 Leave a Comment

Customer service refers specifically to the chain of sales satisfying activities, which usually begins with order entry and ends with the delivery of the product to customers, in some cases continuing as equipment service or maintenance or other technical support.

In times of tough competition when firms offer similar products in terms of design features, price, and quality, a firm that can offer customer service differentiation has a district completive advantage.

Customer service is the speed and dependability with which items ordered by customers can be made available by the firm.

The elements of customer service can be classified into three groups:

Pre-transaction elements,
Transaction elements and,
Post-transaction elements.

These groups are linked to the notion of market transaction namely “before“, “during” and “after” the sale.

These elements of customer service ware briefly discussed in the following section:

Pre-Transaction Elements of Customer Service

Pre transaction elements of customer service tend to be related to a firm’s customer service policy.

They establish a climate for good customer service. This can have a significant impact on customers’ perceptions of the firm and their overall satisfaction.

These elements are not directly related to logistics.

Pre-transaction elements include the following:

1. Written Statements of Customer Service Policy

This document would define service standards related to top customers’ needs. It should include:

Measures for tracking service performance and the frequency of reporting actual performer.

Customer service standards should be measurable and actionable.

2. Customer Provided with Written Statements of Policy

A written statement of customer policy of the firm in the hands of the customer would help him or her to know what to expect from the firm.

It also helps to safeguard against unreasonable expectations and demands from the customer.

Also, it should provide the customer information regarding how to respond if expected service levels are not provided by the firm.

3. Organization Structure

The organization structure should position the senior logistic executive at a high level (say senior management level) to have high visibility within the firm.

The structure should facilitate both internal and external communication of policies, performance, and corrective action as needed.

Customers should have easy access to individuals within the firm who can satisfy their needs and answer the queries and role their problems.

4. System Flexibility

The system should have flexibility and contingency plans built into it s that it can successfully respond to unforeseen events such as labor strikes, shortage of materials, and natural calamities.

5. Technical and Management Service

The firm should be able to provide technical services such as installation, testing, commissioning, and training to the customer.

Also, the firm should help the customers in merchandising, inventory management, and ordering (like management services).

These services may be provided either free of charge or fee-based.

Transaction Elements of Customer Service

These are the elements, which are normally considered to be associated with customer service.

They include the following:

1. Stock Out Level

Product and customer should monitor stock out so that potential problems could be tracked better.

When stock out occurs, the firm should offer the substitute to the customer, or ship the item from another location if possible or expedite the shipment as soon as the out of a stock item is available.

Key Importance of Inventory Management.

2. Order Information Availability

Customers must be provided access to the type of information they need related to their order.

This includes information on inventory status, expected or actual shipping date, and backorder status.

3. System Accuracy

Customers expect a wide variety of data to be made viable by the firm quickly and also the information they receive about order status and stock levels to be accurate.

The system should be able to pay a high level of attention to continuing problems and take corrective action.

4. Consistency of Order Cycle

The order cycle is the total time from customer initiation of the order through receipt of the product or service by the customer.

Elements of the order cycle include placing the order entry, and order processing, order processing, order picking and packaging for shipping, transit time, and the actual delivery process.

Customers tend to be more concerned about the consistency of delivery lead time rather than with absolute lead time.

In today’s time-based competition, reducing lead time has received greater attention.

5. Special Handling of Shipments

Some orders, which cannot be managed through the normal delivery system, require special handling.

These items may have special shipping requirements or may have to be expedited to meet the delivery schedule of the customer.

The costs of such shipments are considerably higher than standard shipments but the cost of a lost customer could be still higher.

6. Transhipment

This involves shipping products between various distribution locations to avoid stock-outs.

7. Order Convenience

Order convenience refers to how easy it is for a customer to place an order.

elements of customer service in supply chain management

Order related problems such as confusing formats, non-standard terms or long waiting time on gold on the telephone, etc. cause dissatisfaction to the customers.

Such problems should be monitored and identified by talking directly to customers.

8. Product Substitution

When the product ordered by the customer is not available, it is replaced by a different size of the same item or a different product, which will perform just as well as better.

Post-Transaction Elements of Customer Service

These elements of customer service support the product or service after the customer has received it.

Post-transaction elements include:

1. Installation, Warranty, Repair and Service parts

These elements are important in purchases of capital equipment where such costs could outweigh the cost of the capital equipment itself.

2. Product Tracking

It is an important customer service element.

The firm must be able to track the product in transit and recall it if it is defective or potentially dangerous.

What is logistic tracking?

3. Customer Complaints, Claims and Returns

An accurate online information system is needed to resolve customer complaints by processing the data the customer and monitoring trends and providing the customer with the most current information viable.

Customers return defective goods, which go through the logistics process in reverse and hence referred to as reverse logistics.

Customer complaints must be handled as efficiently and effectively as possible.

4. Product Replacement

When a customer’s product is being serviced, he or she may be provided with a backup product to be used temporarily until the product is repaired or serviced.

This minimizes the inconvenience to the customer and making him more loyal to the firm.

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6 Steps in Process of Forecasting in Supply Chain

Last Modified: 20 September, 2020 Leave a Comment

All strategic and operating decisions in a supply chain are based on the forecast of future demand. The amount of product produced per period of the time the production capacity that must be made variable is all based open the forecast of customer demand for the period under consideration.

process of forecasting in supply chain management

It is obvious that the demand forecast is the starting point for all subsequent managerial decisions in the supply chain.

This fact emphasizes that forecasting should be highly accurate or the forecasting errors must be as low as possible.

The various steps involved in the basic approach to forecasting are briefly discussed in the following points:

1. Understanding the Objectives of Forecasting

The objective of every forecast is to support certain decisions based on the forecast.

All members of the supply chain (departments or firms in the supply chain) must be aware of the link between the decision and the forecast.

For instance, a large departmental store planning a promotion in which it will offer a discount to a particular product (say soap or detergent) during a particular duration of time (season or period of the festival) should this information with the manufacturer, transporters, and others involved in filling the demand.

All parties in the supply chain should use the same forecast for the promotion period and share a common action plan based on the forecast.

2. Integrating Demand Planning and Forecasting

All planning activities within a supply chain such as capacity planning, production planning, promotion planning, purchasing, etc., should be linked to the forecast of demand (or sales).

Since a variety of functions are affected by the outcome of the planning process, it is important that all these functions are integrated into the forecasting process.

3. Identifying Major Factors that Influence the Demand Forecast

A proper analysis of the major factors which influence the demand forecast is crucial for developing an appropriate forecasting method or technique.

These major factors are:

Demand
Supply
Product-related factors such as design, price, packaging, promotion, brand image, quality, availability, product variety, etc.

The firm should ascertain the nature of the demand, whether it is increasing or decreasing, whether it has seasonality etc. The firm should examine the price elastically and promote elasticity of demand and also the relationship among the different products in the product line (like, whether the products are supplementary or complementary to one another within the product line).

On the supply side, the firm needs an accurate forecast of demand for its products, if a single or few suppliers with long lead times exist in the supply market. If alternative suppliers, who can supply with short lead times, are available a highly accurate forecast may not be very critical.

Of the product-related factor, if cross elasticity of demand exists between two products or brands of the firms, it is better to make the forecast jointly.

benefits of information technology in logistics

For example, when the firm introduces a modified version of an existing product, customers would buy the improved version rather than the existing product for which the demand will be on the decline.

4. Understanding and identifying Customer Segments

Customers are grouped or segmented based on factors such as:

Similarities in-service requirements,
The volume of demand,
Frequency of ordering,
The volatility of demand and,
Seasonality of demand.

Generally, firms may use different forecasting methods for different segments, and therefore a clear understating of the customer segments would be helpful for better forecasting.

5. Determining the Appropriate Forecasting Technique

To select an appropriate forecasting method or technique, a firm must have a clear understanding of the several dimensions which are relevant to the forecast.

These dimensions are:

Geographical location and area,
Products groups and,
Customer segments. It is advisable to have the forecast product group-wise, customer segment-wise, and geographical location wise (regions or status districts) Different forecasting methods or techniques may have to be used for each dimension. Sometimes, using aa combination of the four forecasting methods namely, 1. Qualitative, 2. Time Series, 3. Casual and.
The simulation would be the most effective approach to forecasting.

Key Elements of Customer Service in Logistics.

6. Establishing Measures of Performance and Error for Forecast

To evaluate the accuracy and timeliness of the forecast, nit is necessary that the firm establishes a clear performance measurement system.

The performance measures (or metrics) should correlate with the objectives of the business decision the firm takes based on the forecasts.

Several major decisions such as production capacity, inventory levels, warehousing space, human resources, etc., are based on the forecast of demand for the products the firm wants to produce and sell.

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7 Tips for Reduction of Physical Distribution Costs

Last Modified: 18 September, 2020 Leave a Comment

Physical distribution managers try to minimize the costs of each element in the physical distribution system viz, order processing, material, handling, inventory, warehousing, and transportation – decreasing costs in one area often raise them in another.

opportunities for reduction of physical distribution costs

Therefore, by using a total cost approach to physical distribution, managers can view the distribution system as a whole, not a collection of unrelated activities.

The emphasis shifts from lowering the separate costs of individuals’ function to minimizing the total cost of the entire distribution system.

Ways for Cost Reduction of Physical Distribution

Opportunities for cost reduction in physical distribution operations can usually be found in one or more of the following type of improvements:

1. Simplification of the System

Physical distribution is primarily the movement and storage of goods.

Therefore, a more streamlined physical distribution system can lower the cost of distribution operations.

For example, the physical distribution system can be simplified by eliminating a field warehouse by supplying customers in the local market direct from the manufacturing source.

By this, one complete filed handling operation gets eliminated from the system.

2. Reduction in Inventories

It is possible to reduce inventories often by consolidating them at fewer locations, centralizing the storage of slow-moving items, or by reducing the stock replenishment cycle for filed warehouses.

By reducing inventories the carrying costs can be minimized and the resulting free capital can be used for other purposes int the business.

3. Improvements in Packaging

Quite often, packaging designers and even product designers fail to recognize the practical limitations imposed on a design by physical distribution.

Smaller, denser, and uniform package sizes permit greater efficiency in transportation and warehousing operations.

4. More Efficient Methods and Procedures

While it is important to eliminate cost through simplification of the distribution system, it is also important to ensure that maximum eff leniency is achieved from whatever system is being used.

This refers to the selection and use of the most efficient materials handing procedures and equipment, warehouses layout and utilization of warehouse space, warehousing and shipping methods and order processing procedures, and the considerations of alternative modes of transportation and various types of transportation equipment.

5. Use of Technological Innovations

Technological innovations such as containerization, high-speed computers and communication equipment, air freight, new and more automatic materials handling equipment, trucks suitable for both over the road and local delivery service, etc., improve the efficiency of distribution and reduce distribution costs.

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6. Revised Channel of Distribution

Depending upon the company’s volume, its sales objectives, and policies, and the nature of its markets, it may be possible to reduce the distribution costs considerably by revising the channels of distribution being used.

ways for cost reduction of physical distribution

It is assumed that this can be accomplished without affecting marketing effectiveness.

7. Studying the System for Improvements Opportunities

The entire distribution process is completely reviewed from vendors through company operations to and through customer distribution operations.

Such total cost analysis will avoid limited improvement due to suboptimization.

Such a complete review of the entire distribution system involves four steps. They are:

Analyzing customer demand patterns.
Delineating present distribution methods, costs, and volumes.
Developing a representative range of alternative methods and systems and
Evaluating alternatives and selecting the optimum plan.

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Top 5 Factors that Affecting Cost of Logistics

Last Modified: 1 August, 2022 2 Comments

Good logistics management views each activity in the supply chain as contribute to the process of adding value. Logistics costs are driven or created by the activities that support the logistics process.

There are many types of elements that influencing the cot and importance of logistics.

What are the Factors Affecting the Cost of Logistics?

The following are the factors that disturbing logistics cost:

1. Deregulation (Reduction in Economic Regulation)

Relaxed government control of carriers? rates and fares, entry, and exit, mergers ad acquisitions.

Reductions in economic regulation in the US airfreight, railroad, and trucking industries allowed individual carriers flexibility in pricing and service.

This flexibility is important to logistics for several reasons:

It provides companies with the ability to implement the detailed logistics approach in the sense that companies could specify different service levels, and prices could be adjusted accordingly.
The increased flexibility in pricing allows large buyers of transportation services to reduce their transportation costs by leveraging large amounts of freight with a limited number of carriers.

2. Changes in Consumer Behaviour

Changes in consumer behavior have important logistical implications.

The concept market demassification suggests that, in contrast to mass markets, an ever-increasing number of market segments has distinct preferences.

One way to address market de massification is through mass customization, which refers to the ability of a company to deliver highly customized products and services that are designed to meet the needs and wants of individual segments or consumers. Mass customization demands that logistics systems must be flexible rather than rigid.

In terms of changing family roles, more and more women are in the employment roles of organizations all over the world. One consequence of this has been an increasing emphasis on the conveniences associated with a family shopping experience.

This convenience is manifested in various ways ton include extended store hours, home delivery of purchased items, and ready to eat, ready to cook foods. each of these has logistics-related implications.

As for rising customer expectations, it should come as no surprise that consumer expectations tend to increase through time, which means that a satisfactory level of performance in the past might not be considered as so today.

Today, the concept of a made to order, direct to customer personal computer has been made a reality by dell computer. Dell has considerably changed distribution channels and supply chains in the sense that make to order have much different production and inventory requirements than does make to stock.

3. Technological Advances

From a logistical perspective, some of the important technological advances have involved computer hardware and software in the sense that management of logistics involves a tremendous amount of data.

Key Importance of Information Technology in Supply Chain.

Technological advances in computer hardware, software, and capacity have allowed logisticians to make faster, more informed, and more accurate decisions with respect to customer service, transportation, inventory management, and other logistical activities.

The internet has proved to be a powerful tool for improving logistical effectiveness and efficiency., The heaviest use of the internet involves purchasing or procurement and transportation.

4. The Growing Power of Retailers

The emergence of “power retailers” such as Wal Mart, home depot, and best buy have influenced logistics to a great extent.

factors affecting transportation cost and pricing

Power retails have large market shares and low prices. Often they are the largest customer their suppliers.

Many power retailers have recognized superior logistics is an essential component of their corporate strategies and has adopted state of the art logistics practice.

For example, Walmart has implemented the practice of collaboration planning, forecasting, and replenishment successfully.

5. Globalization of Trade

Although many factors such as rising standards of living and multicountry trade alliance have contributed to the growth of global trades, logistics has played a key role too.

International logistics is more challenging and costly than domestic logistics.

Top Positive Effects of Globalization (With Examples).

The geographical distance between buyers and sellers is often greater (which may translate into longer transit times) and monitoring logistics processes is sometimes complicated by differences in business practices, culture, and language.

As for costs, the greywater geographic distances tend to result in higher transportation costs and documentation requirements can be quite costly as well.

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Top 10 Duties and Responsibilities of Logistics Manager

Last Modified: 10 September, 2020 3 Comments

Logstics is a function or activity concerned with getting products and services where they are needed and when they are needed or desired.

duties and responsibilities of logistics manager

Logistics management is that part of supply chain management that plans, implements, and controls the efficient and effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers requirements.

Logistics Managers are Responsible for Following Activities

The following are important duties and responsibilities of the logistics manager for these activities:

1. Traffic and Transportation

In a logistics system, the major focus is upon the physical movement or flow of goods or upon the network that moves the product.

This network is composed of transportation agencies.

The logistics manager selects the mode or modes of transportation used in moving the raw materials and finished goods.

2. Storage and Warehousing

It involves warehousing and inventory management which are closely related activities.

A direct relationship exists between transportation and the level of inventory and the number of warehouses required.

Storage and transportation have a trade-off relationship between them.

Firms that have slow means of transport need more warehousing space to keep higher inventory levels as compared to those using faster transport.

3. Packaging

The type of transportation selected affects the packaging requirements both for moving a finished product to the market and for the inbound materials.

Industrial packaging should be such that it protects the goods from damage transportation especially through road, rail, or ocean shipping.

4. Material Handling

Material handling is crucial for an efficient warehouse operation.

Logistics managers are responsible for the movement of goods into a warehouse, storing them and moving the goods from storage to packaging and shipping areas and for onward transportation to customers.

5. Inventory Forecasting

Accurate forecasting of inventory requirements and materials and parts are essential for effective inventory control, especially in firms using an st in time (JIT) or, material requirement planning (MRP) approach to control inventory.

6. Production Planning

Ir is closely related to forecasting in terms of effective inventory control.

Once the forecast is developed and the current inventory on hand and usage rate is assessed, production planning managers can determine the units to be produced to meet market demand.

Production planning is integrated into logistics.

7. Purchasing

Puhasing or procurements is included in logistics because the transportation cost related directly to the location of the supplier sources.

In terms of transportation and inventory costs, the quantities purchased would also affect logistics cost.

8. Customer Service

Customer service levels in many ways glue together other logistics areas.

Decisions about inventory, transportation and warehousing relate to customer service requirements.

logistics department roles and responsibilities

Logistics plays an extremely role in ensuring that the customer gets the right product at the right and at the right time.

Logistics decisions about product availability and inventory lead time are critical to customer service.

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9. Site Location

A change in the location of a manufacturing plant or warehousing could alter time and place the relationship between plants and markets or between supply points and plants.

Such location changes will affect transportation cost and service, customer service, inventory requirements, etc.

Hence, transportation cost is frequently a very factor in deciding on the location of a plant or a warehouse.

10. Order Fulfillment

Order fulfillment consists of activities involved with completing customers’ orders.

Logistics ensures that the delivery lead time is reduced to the minimum in order to complete customer orders in time.

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