Transportation and Logistics
Company Sourced
third party Vehicles Third party owned trucks are used to transport the
cigarettes from the production plant to the company depot/warehouse.
Similarly, third party owned trucks are also used to transport the goods from the warehouse to the distributors. All these transportation costs are borne by the company.
From the distributors place, the cigarettes are distributed to the wholesalers & the retailers (Pan Shops, general stores, standalone retail outlets,
wholesalers etc) through the salesmen and dealer salesmen by cycles, motorcycles, delivery vans.
Similarly, third party owned trucks are also used to transport the goods from the warehouse to the distributors. All these transportation costs are borne by the company.
From the distributors place, the cigarettes are distributed to the wholesalers & the retailers (Pan Shops, general stores, standalone retail outlets,
wholesalers etc) through the salesmen and dealer salesmen by cycles, motorcycles, delivery vans.
FMCG companies have consolidated their inventory by deploying SAP module of
Information technology in their warehouses.
The stock positions are automatically updated in the database as & when goods are sold from the warehouse.
Accordingly, replenishment orders are generated to the company when the stock level goes below the benchmark level which takes into account the order lead time as well.
This way cigarette companies reduces its inventory holding costs by deploying proper inventory management.
The stock positions are automatically updated in the database as & when goods are sold from the warehouse.
Accordingly, replenishment orders are generated to the company when the stock level goes below the benchmark level which takes into account the order lead time as well.
This way cigarette companies reduces its inventory holding costs by deploying proper inventory management.
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