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Difference between metrics and KPI
A key performance indicator (KPI) is defined as a measurement used to analyze and track the performance of business operations over a set period of time...
The flow of materials through an organization is usually initiated when procurement sends a purchase order to a supplier.
Inward transport or traffic
Inward transport or traffic actually moves materials from suppliers to the organization’s receiving area. All safety and legal requirements are met by the type of transport (ground, air, water), transit operator, and designed route. Ensuring deliveries arrive on time and at reasonable cost.
Receiving
Receiving makes sure that materials delivered correspond to the order, acknowledges receipt, unloads delivery vehicles, inspects materials for damage, and sorts them.
Warehousing or stores
Warehousing or stores moves materials into storage, and takes care of them until they are needed. Many materials need special care, such as frozen food, drugs, alcohol in bond, chemicals that emit fumes, animals, and dangerous goods. As well as making sure that materials can be available quickly when needed, warehousing also makes sure that they have the right conditions, treatment and packaging to keep them in good condition.
Materials handling
Materials handling moves materials through the operations within an organization. It moves materials from one operation to the next, and also moves materials picked from stores to the point where they are needed. The aim of materials handling is to ensure movement of material is efficient. It uses short journeys, appropriate equipment, and special packaging and handling to avoid damage.
Outward transport
Outward transport takes materials from the departure area and delivers them to customers (Concerns such as transport operator, route design safety and legal requirements are present here.)
Physical distribution management
Physical distribution management is a general term for the activities that deliver finished goods to customers, including outward transport. It is often aligned with marketing and forms an important link with downstream activities.
Recycling, Returns and Waste Disposal
Even when products have been delivered to customers, the work of logistics may not be finished. There might, for example, be problems with delivered materials – perhaps they were faulty, or too many were delivered, or they were the wrong type – and they have to be collected and brought back. Sometimes there are associated materials such as pallets, delivery boxes, cable reels and containers (the standard 20 foot long metal boxes that are used to move goods) which are returned to suppliers for reuse. Some materials are not reused, but are brought back for recycling, such as metals, glass, paper, plastics and oils. Finally there are materials that cannot be used again, but are brought back for safe disposal, such as dangerous chemicals. Activities that return materials back to an organization are called reverse logistics or reverse distribution.
Order Picking
Order picking finds and removes materials for stores. Typically materials for a customer order are located, identified, checked, removed from racks, consolidated into a single load, wrapped and moved to a departure area for loading onto delivery vehicles.
Stock Control
Stock control sets the policies for inventory. It considers the materials to store, overall investment, customer service, stock levels, order sizes, and order timing.