Halal Logistics Process Chapter 2

CONTENTS
• Logistics Operations & 3PL

• Logistics Cooperation

• Network Design

• Warehouse, Raw Material Handling,

Packaging, Labeling and Inventory

• Transportation

• Third Party Logistics and Advantages of

Using 3PL

• Outsourcing
Logistics
Operations
Logistics operations: 4 key
processes
Suppliers and manufacturers

• Obtaining raw materials is the first part of supply chain management,

which is taken care of by the manufacturer or supplier. A dependable
manufacturer is responsible for tracking the work-in-process inventory
phase (i.e., the movement of raw materials being processed into finished
goods) to make sure you get a high-quality, sellable product on time and
at the most affordable price.

• Choosing the right supplier is important; manufacturers that are

inconsistent in delivering a quality product and/or shipping inventory to
the seller can slow down operations from the very start.
Logistics operations:
4 key processes
Distributed fulfillment centers

• Fulfillment centers are warehouses that hold

inventory close to the end customer, so each order
is picked, packed, and shipped as soon as it’s
placed to ensure the fastest delivery possible.
Many direct-to-consumer (DTC) brands depend
on a third-party logistics (3PL) company that
performs ecommerce fulfillment services. That
way, they don’t have to worry about fulfilling and
shipping orders themselves.
Logistics operations: 4 key
processes
Warehousing

• Warehousing is a key stage in the logistics operations

process that involves storing and managing physical goods
before they are sold. There are several key parts to
warehouse management, including the safety and security
of stored goods, inventory control processes that help to
optimize inventory storage, and much more. These crucial
operational warehouse management systems help to track
where items are located, when they arrived, and how long
they have been there.
Logistics operations: 4 key
processes
Shipping

• Orders that are shipped to customers accurately and quickly speaks to

how well you run your logistics operations. Although the execution of
shipping orders to their destination is ultimately up to the carrier, you
can choose which shipping methods to offer your customers (e.g.,
standard via ground, expedited shipping via air, etc) and to which
locations (domestic vs. international shipping).

• You also have the option to ship orders in-house, most often which
involves standing in line at the post office. Otherwise, you can
outsource fulfillment to a company that has access to discounted
shipping rates from major carriers and can take care of the shipping
process
4 logistics operations that optimize your supply
chain management
Automated order fulfillment - Picking, packing, and
shipping orders is a huge time commitment and can
Inventory management processes - Implementing
take you away from more important, money-
inventory management software can help you better
making tasks. Fortunately, there are several ways to
track inventory levels in real time.
automate the order fulfillment process with a 3PL
partner.

Warehouse management systems - A warehouse

management system (WMS) can help you manage
inventory levels and storage, improve productivity, Real-time data and reporting - It’s hard to find ways
and efficiently fulfill orders. This results in to improve logistics operations without access to
significant time savings and reduces human error by accurate and real-time data
automating time-consuming logistics operations
processes.
Logistics
Cooperation
Network
Design
Warehouse, Raw
Material Handling,
Packaging, Labeling
and Inventory
Warehousing
• Warehousing is the act of storing goods
that will be sold or distributed later.
While a small, home-based business
might be warehousing products in a
spare room, basement, or garage, larger
businesses typically own or rent space in
a building that is specifically designed
for storage.

• warehouses use specific elements that

help manufacturers, distributors, and
retailers monitor inventory and store it
safely.

• A warehouse is a commercial building

for storage of goods. Warehouses are
used by manufacturers, importers,
exporters, wholesalers, transport
businesses, customs, etc.
 Material handling involves short-distance movement within the
confines of a building or between a building and a transportation
vehicle.

Raw Material It uses a wide range of manual, semi-automated, and automated

equipment and includes consideration of the protection, storage,

Handling
and control of materials throughout their manufacturing,
warehousing, distribution, consumption, and disposal.

Material handling can be used to create time and place utility

through the handling, storage, and control of material, as distinct
from manufacturing, which creates form utility by changing the
shape, form, and makeup of material.
Packaging

• Packaging is the science, art and technology of enclosing or protecting products for distribution, storage,
sale, and use.

• Packaging also refers to the process of designing, evaluating, and producing packages.

• Packaging can be described as a coordinated system of preparing goods for transport, warehousing,
logistics, sale, and end use.

• Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is fully
integrated into government, business, institutional, industrial, and personal use.
Labeling

• Package labeling (American English) or labelling (British English) is any written, electronic, or graphic
communication on the package or on a separate but associated label.
Inventory

• Inventory is an accounting term that refers to goods that are in various stages of being made ready for
sale, including: Finished goods (that are available to be sold) Work-in-progress (meaning in the process of
being made) Raw materials (to be used to produce more finished goods)
Transportation
Third Party Logistics
and Advantages of
Using 3PL
BENEFITS OF THIRD-PARTY LOGISTICS
(3PL)
1. Drive Cost Savings - 3PL firms specialize in logistics and thus will have a more extensive network than your
company’s supply chain function. They will likely have exclusive relationships within the logistics sector,
greater influence during negotiations, and will also be able to offer greater volume discounts to clients. All of
this can minimize overhead costs.

2. Get Access to Expertise and Experience - In today’s complex global market scenario, it is tough to anticipate
and accommodate internal expertise in all the capacities and regions required. A 3PL provider will have
knowledge and experience in matters such as transport documentation, import and export, international
compliance and economic regulations, for instance.

3. Focus on Core Competencies - Outsourcing logistics will give your organization the leeway to focus on its
core competencies instead of getting involved in the management of non-core but critical functions. Your
business can enjoy the benefits of logistical expertise without deploying internal resources.
BENEFITS OF THIRD-PARTY LOGISTICS
(3PL)
4. Gain Flexibility and Scalability - The advantage of third-party logistics in supply chain management is that it
offers enterprises the flexibility and scalability to utilize supply and distribution resources based on current
business needs. Thus, when sales are down, there are no redundant investments and unutilized resources, and
when there’s a surge in demand, enterprises can upscale.

5. Enable Business Growth and Market Expansion - The role of third-party logistics in supply chain management
is to enable business growth by giving companies access to markets where they don’t have an established
presence. Being able to manage inventory in a new market without having to spend money on warehousing,
equipment, and labor can save money, as well as the effort of learning the logistical nuances of a new market.

6. Improve Customer Satisfaction - All of the aforesaid 3PL benefits will lead to improved services and response
time, timely deliveries and greater brand reliability. This translates to satisfied customers — the fundamental goal
of all businesses
 Lose skills and Have a hard time
Disadvantages infrastructure you
may want to develop
finding find a
trustworthy 3PL
of Outsourcing
Logistics to a Sacrifice some Send out your
3PL provider control of your
image and customer
inventory to a
relatively unknown
service third party
Outsourcing