Product distribution process is defined has to deliver ordered products and services in accordance with sales order in the most cost-effective manner that also support customer demands (stock accuracy, logistics planning, distribution, invoicing, collection, interfaces: production/selling).
The shipping manager:
• Obtains list of customers orders,
• Has to participate in or know the production schedule,
• Has to arrange transportation,
• Receives and / or picks finished goods to fulfill customer orders,
• Has to prepare shipping documents and bill of lading,
• And then has to deliver the product and acknowledge delivery and update inventory records.
Objectives Typical
• To deliver goods to customer in the right specification at the agreed time
• To deliver ordered products in accordance with sales order in the most cost-effective manner
• To provide goods on stock on cost effective basis assuring a maximal service rate without stock out
Risks
· Inefficient execution of processes
· Shipments are lost of track.
· Goods are shipped without an authorized order.
· Customer’s time requirements are not met.
· Incorrect or damaged goods are delivered.
· Goods are delivered without open customer credit line at the time of delivery.
BEST PRACTICES
Definition of standards
Standards have to be defined regarding delivery date management and monitoring to satisfy the customers (right items, quality, delivery date), and to insure the firm’s reputation, the customer relation and consequently future sales opportunities.
Product Damage handling, anti-Fraud action, Health & Safety regulations,
Information Security, actions anti- theft / loss of Physical assets, environmental
regulations, physical access rules, accounting rules as well as legal standards are
all defined in a well-defined procedure.
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