Logistics Planning covers strategic and operational planning for the delivery of a product or service at the right time, at the right place, at the right cost and in the most efficient way. Logistics planning is the key to success, especially in international trade..
WHAT IS LOGISTICS PLANNING?
Logistics planning, as a part of the supply chain, is the most effective organization of the processes of procuring, storing, transporting, distributing and delivering products to the final consumer.
BASIC ELEMENTS OF LOGISTICS PLANNING
1. Transportation Planning
Transportation modes such as land, sea, air, and rail are determined.
Transportation time, cost, safety, and climate conditions are taken into account.
Multimodal or intermodal transportation options are evaluated.
2. Storage and Inventory Management
Where, for how long and under what conditions products will be stored is planned.
Stock turnover, inventory cost and demand estimates are important.
3. Route and Time Planning
Which routes and how long the products will pass through are determined.
Waiting times at ports, customs procedures and transit times are calculated.
4. Supplier and Distribution Network Management
Supplier and distribution center locations are included in the planning.
Alternative sources and distribution scenarios are created.
5. Information and Document Management
Transportation-related documents (invoice, bill of lading, certificate of origin, etc.) must be prepared completely and on time.
Tracking is done with digital logistics systems (WMS, TMS, ERP).