Commodity logistics is an essential ingredient for building brand of commodities. There are several roles which commodity logistics division has to do for commodity servicing.
- Timely supply: The customers are very used to fast delivery. In order to supply them material on time, dealers also need to get timely supply of material from the manufacturers. Also, limited storage space at retail shops demand that the shops need to maintain minimum inventory.
- Good geographical reach: Small size trucks to reach far-flung areas as rodas might not be there for large trucks.
- Arranging various sizes of trucks to service different size orders & maximum utilization of the loading capacity of the trucks: Each dealer has a different stockyard size and cash flow cycle. So, the order size of each dealer is different which company logistics need to serve.
- Managing Carrying and Forwarding Agents or Handling Agents: CFAs make or break the reputation of the company in the market as often they influence the timely delivery, quality and a few pre-sales/ post-sales activities (proforma invoice, customer complaints, sample delivery etc.) from the godowns. So, both strict control on their working so that the dealer’s experience with them is good as well as empowering them enough for speedy resolution of customer complaints are important.
- Paperwork to meet statutory requirements: There is a lot of documentation needed to be submitted to the local authorities.
- Fleet maintenance: This often involves the complexity of managing Company trucks, outsourced transporters and customer trucks.
- Depot stock management: Stock at godowns need to be properly kept. FIFO needs to be maintained. Any manufacturing defect observed in the incoming material need to be immediately informed to the QA personnel so that bad material does not creed into the market.
Commodity logistics is at the heart of customer satisfaction and significant planning needs to be done for this.
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