| Logistics is the act of moving goods down the supply | | | | best prices for each of these services. |
| chain from the manufacturer to the customer. For | | | | Logistics software provide analysis of many |
| many large manufactures, importers, or exporters | | | | combinations of the before mentioned factors of |
| logistical operations are a considerable expense. For | | | | cost. There are software solutions that provide the |
| this reason, companies should regularly evaluate the | | | | most basic comparison of freight rates and routing |
| cost of logistical operations. | | | | options. This kind of analysis would be most useful to |
| A company can choose to outsource their logistical | | | | smaller retailers selling directly to customers, via online |
| needs completely or partially. If they outsource | | | | stores, or for small to midsize business that distribute |
| completely, they would hire a logistics company to | | | | products directly from the manufacturer's location to |
| move the goods through the entire supply chain | | | | retail stores. Companies with multiple warehouses, |
| (from manufacturer to retailer). Partially outsourcing | | | | multiple supply chain locations need software that can |
| means the company manages the transportation of | | | | do more. |
| the goods through the stages of the supply chain. | | | | For businesses with more complex logistical |
| Either way, minimizing total cost is the goal. This | | | | operations, there are more comprehensive logistical |
| article introduces elements of logistical operations and | | | | software solutions. One of these is |
| software that can help manufacturers or logistical | | | | production-scheduling software. This type of |
| companies achieve this goal. | | | | software generates manufacturing plans for multiple |
| In general, there are many factors to consider in | | | | supply chain locations. This software is idea for |
| pricing a company's total logistical costs: freight | | | | companies whose goods must go to many locations, |
| carriage, inventories, and warehouses. Changing at | | | | for assembly, before the retailer. |
| least one of these factors can lower total costs. For | | | | For strictly logistical companies there are many |
| example, logistical studies performed by major | | | | software options. Some specialize in one type of |
| manufactures showed they could lower total logistical | | | | freight carriage, for instance, there are software |
| cost by spending more on freight carriage costs, i.e. | | | | programs that seek and update highway traffic |
| choose airline over truck transportation. This lowered | | | | patterns and construction schedules. There are also |
| total cost because they could get the goods from | | | | software programs that hold and manage all |
| point A to point B so fast that the company could | | | | operations at any given time. With this type of |
| then decrease inventory and lower warehouse costs. | | | | software, you can optimize distribution with features |
| The question is what combination of these three | | | | for best fit, weight distribution, vehicle loading, |
| factors will lower your company's costs. | | | | shortest path optimization, and cube optimization. For |
| There are two fundamental problems to consider. | | | | freight forwarders, software that allows you to |
| One is to find the right combination of freight | | | | smoothly forward freight to any type of carrier is |
| carriage, inventories, and warehouse services needed, | | | | available. When choosing a product make sure it |
| just like the above example. The other is to find the | | | | provides for tracking freight across multiple carriers. |