Economics and management in the sphere of ict department: management and marketing

II. SERVICE SYSTEM
2.1 Logistic arrangement
Service sy management is a crucial part of logistics transportation and deals with the planning, execution, and optimization of the physical movements of goods. In simpler terms, it deals with the management of transportation operations of all types, including delivery routing, mapping, fuel costing, warehousing, communications, tracking and managing of transportation vehicles, traveler and cargo handling, carrier selection, and accounting to manage and optimize the daily operations of transportation fleets.
2.2 Logistics functions
Planning involves strategic and tactical tasks. It calls for the knowledge and experience of engineers to model optimized designs. On the other hand, execution tasks involve procurement and shipment and can be mostly automated.
Strategic planning addresses questions such as:
● What carriers should I partner with and how?
● How will seasonality affect my carrier assignments?
● Should I use dedicated or private fleets?
● Which carriers provided quality services in the past?
● Should I use pool points, cross-docks, or multistop routes?
Tactical planning answers questions such as:
● How can I quickly secure rates for a new DC/plant/lane?
● What lanes are having performance problems?
● Which carriers are complying to or exceeding their contracts?
● Are site managers complying with the strategic plan?
● Where should I establish a seasonal contract?
Execution or operational planning answers questions such as:
● Which carrier should I tender this load to?
● How can I collaboratively source this week’s loads?
● How do I prevent maverick/rough behavior?
● Should I use a contract carrier or look at the spot market?
● How can I best communicate with my carrier?
2.3 Logistics role
Four major functions of logistics are transportation, warehousing, third- and fourth-party logistics (3PL and 4PL) logistics, and reverse logistics. Transportation: Many modes of transportation such as air, rail, water, road, or pipeline play a role in the movement of goods through supply chain. Efficient logistics depends on selection of the most effective combination of the modes. Warehousing: Warehousing is related to activities such as receiving, storing, and shipping products to and from production or distribution locations; when the product is not on the move between locations, it waits in the warehouse. Third- and fourth-party logistics (3&4 PL): According to the CSCMP glossary, 3PL is defined as outsourcing all or much of a company’s logistics operations to a specialized company. These services are integrated together by the provider. Services they provide include transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding. On the other hand, 4PL organization is often a separate entity established as a joint venture or long-term contract between a primary client and one or more partners; a 4PL organization acts as a single interface between the client and multiple logistics service providers. All aspects of the client’s supply chain are managed by the 4PL organization. It is possible for a major third-party logistics provider to form a 4PL organization within its existing structure. Reverse logistics: This refers to handling returns, recycling, reuse, or disposal of materials that travel from customers to suppliers.