Logisticmeans the part of supply chain management that plans, implements and controlefficient, effective forward and reverse flow and storage of goods, servicesand related information between the point of origin and the point consumptionin order to meet customers’ requirements. Transportation, warehousing,information system and customer service play very significant roles inlogistics function. Logistic is createthe flow of goods between supply chains partners such as cost, servicerequirements, competitive advantage and finally profits can be optimized.
Logistic management process is begin with raw material accumulation to thefinal stage of delivering goods to the destination. It may help company reduceexpenses and enhance customer service.2.2.2 Issue Reverselogistic is described via most reviews as planning, implementing, handling thefinancial flow of raw materials, work-in-progress inventories, finished goodsand wastages.
99Speedmart’s face problems that carry out reverse logistic, as aunique management on handling the returned goods is no longer nicely set up asefficient as finished goods management. Afew local businesses even opted to hire third party such as DHL to control theirreverse logistic. Lacking of fund country of the artwork statistics such astechnical knowledge and superior software, making it harder for 99Speedmart tomaintain up with multinational groups which have extra capital andunderstanding to deal with reverse logistics.
Localcompanies have issues whilst again goods are not being positioned returned instock inventory as no right management is achieved. The returned goods may thenmix up with the everyday goods causing troubles while selecting and sortinglater. The primary hassle is 99Speedmart does no longer have proper system totrace back the stock-keeping units (SKUs) of the returned goods, hence addingit back into inventory is a trouble and time-consuming. Info which include themotives of returning, physical conditions of the returned goods and accountingstability could not be update well in most local business implementing reverselogistic. 2.
2.3Strategy Localcompanies should invest in the appropriate software to ensure accurate datacapture. It can control the warehouse management system and the accountingsystem and provides a quarantine zone to get rid of obsolete items or goodreturned. This will then simplify the process of separating items accordinglyto remove or unpack and store useful parts. In addition, local companies alsoneed to hire third party to manage their reverse logistics. Third party means2.2.4 Tools, Techniques and Methods Basedon the issue occur in 99Speedmart, we proposed Warehouse Management System(WMS) as a tool to solve their problems.
Warehouse management system track andcontrol the flow of goods from the receiving dock of a warehouse ordistribution centre until the item is loaded for outbound shipment to thecustomer. The goal of a WMS includes reducing distribution centre labour cost,streamlining the flow of goods, reducing the time products spend in thedistribution centre, managing distribution centre capacity, reducing paperworkand managing the cross-docking process. The advantages of using this tool is canmanage warehouse structure, optimize warehouse activity, increase inefficiency, increase in accuracy, reduce customer complain, replenish stock assales occur and monitor receiving and return.
A WMS also can improve warehouseproductivity by repositioning product to reduce the distance of that productand pickers must travel. 99Speedmart can use this system to track inventoriesin their retail location and monitor receiving and returns stock. 99Speedmartcan handle 3500 types of product from the SKUs from 3000 branches at all oftheir facilities. From that, they can improve in operating costs, customerservice, information visibility and the ability to find a return goods.