What Is a Fulfillment Center & Why It’s Important

Fulfillment centers are one of the most important things that help electronic stores to use external sources for shipping and storage operations, and this has a great impact on reducing the space needed to store all products, as the merchant sends his goods to Fulfillment centers and they store them and then ship them to customers on their behalf, and thus The storage issue that might be experienced by a large number of e-store merchants is being solved and in this article we will talk about Fulfillment centers and their importance.

What is a fulfillment center?

Fulfillment centers are physical locations where merchants can send their goods to be stored and shipped to clients on their behalf. They are third-party logistics (3PL) providers.

Thus fulfillment centers receive orders on behalf of e-commerce retailers and prepare and ship orders to customers, saving time and effort for e-commerce businesses.

How do fulfillment centers work? 

Fulfillment centers fulfill the requests of customers of a particular store on behalf of that store; they are key links in the company’s supply chain,

So fulfillment centers help e-commerce companies in controlling local inventory as well as receiving and shipping orders to customers on time.

These fulfillment centers receive the products of the e-commerce companies and place them in the storage centers that they own to fulfill the customers’ requests.

Once the customer completes the purchase process, the fulfillment center identifies those items and prepares them for shipment to the customer.

Fulfillment centers can process orders from company to company (B2B) as well as process company-to-customer (B2C) orders.

What is a fulfillment warehouse?

A fulfillment warehouse is defined as a fulfillment center, but the most prominent difference between warehouses and the fulfillment center is that a warehouse is a place for storing products and items inside only, but fulfillment include a large number of operations besides the process of storing products.

You can try the Fulfillment System offered by LOGSTIAT

What are the differences between warehousing and fulfillment centers?

Fulfillment Center

You may think that fulfillment and warehouses are the same and there is no difference between them, but you are wrong. There is a big difference between warehouses and fulfillment. Here are a number of points that illustrate the most prominent differences between them:

1. Warehouse specializes in storing products and items, but fulfillment also store products and fulfill customer orders more efficiently and effectively than in

2. Warehouses are more stable, but fulfillment are constantly moving, as it performs a large number of functions besides the function of storage, where:

  • Receiving the inventory
  • Prepare picking lists for items and products
  • Processing of product packing boxes.
  • Preparing shipping orders.
  • Returns management.

3. Warehouses may not have relationships with multiple shipping companies, unlike fulfillment, which have many relationships with a large number of shipping companies, and therefore can deliver products faster to customers and also at a lower delivery cost because they find the best offer.

4. Warehouses can offer long-term storage options, while fulfillment relies heavily on short-term warehousing, as they focus on rapid inventory turnover, thus storing products for a company in the short term only.

5. Also, the longer the period of storing products, the greater the cost to the retailer, but storing his products in his own warehouse will not cost him all of those costs.

Eliminate storing inventory and packing boxes

And storing has many benefits, and perhaps the most important and prominent benefit is Eliminate storing inventory and packing boxes,

especially since there are a large number of retailers who do not prefer to take over the task of packing and sending products to customers, especially that in the case of increasing orders, the matter becomes more difficult for them. .

Here, fulfillment centers come to solve this problem by assuming the task of storing, packaging and shipping products to customers also on time on behalf of retailers in electronic stores.

They are ready to complete the largest number of orders in the least possible time, which provides retailers more time to grow their business and focus on other important things.

Can a fulfillment center do one- or two-day delivery?

Fulfillment Center

The answer is of course yes, as provides retailers with many fast delivery options, which include the ability to ship within a day or two, and also the ability to ship on the same day.

And these services differ from one fulfillment center to another according to the geographical location of the shipping center as well as the technologies used and companies Transport that is handled.

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admin April 21, 2023 0 Comments

What’s The Difference between Courier Services and Standard Delivery?

Courier Services and Standard Delivery are two types of delivery services, but there are some differences between them in terms of how they work and service, in the old days people relied on Standard Delivery to get their packages, and it was the popular system until Courier Services appeared, and in this article we will show you The difference between Courier Services and Standard Delivery.

Courier services

Courier services

What is a courier service? It is one of the delivery services that is provided by some private parties, and sending parcels has become very easy when it comes to sending them through Courier services

Courier services have grown by leaps and bounds in terms of service and quality as well, and therefore there is strong competition between companies that provide the same service.

Also, there are slight differences between this service and Standard delivery in terms of pricing and speed of service as well, but they are not too high to cause inconvenience to customers.

Standard delivery

What about Standard delivery? They are the providers of non-urgent delivery services, and it used to be the only way to send and receive parcels, and it was very slow but there was no suitable alternative

And we note that with time the quality of Standard delivery increases, but it was not noticed due to the extensive use of Courier, services In general, Standard delivery is cheaper It also offers a cash on delivery service compared to the second service.

The key differences between Courier Services and Standard Delivery

Courier services

There are clear differences between Courier Services and Standard Delivery, as Courier Services is faster and safer.

Although there are a large number of individuals who avoid Courier Services and we will show you the key differences in the following points:

1. Speed

In terms of speed of delivery, we find that Courier Services is the fastest way to send urgent orders, but Standard Delivery is for those non-urgent orders that do not need speed in delivery.

2. Availability

In terms of availability, both services are somewhat available, but courier services are widely available, as a large number of delivery companies have gone to provide this service.

As for Standard delivery, it has become less available compared to the other service, because a large number of these companies went to the other fast method,

Due to the high return from it and there is a noticeable demand for it, especially since the speed of delivery is the feature that customers are looking for.

3. Security

As for the security feature, we find that courier services offer high security advantages compared to standard delivery,

Especially since the first method has a high tracking and monitoring system that may not be available in the standard method. Easy access

4. Cost

As for the cost of goods sold, we find that courier service cost a little more than standard delivery, due to the additional advantages of the first method that are not available in standard delivery.

5. Free up your resources

Courier services

Courier service help you save a lot of time and effort as it deals with shipping jobs smartly and wisely and by relying on modern technologies,

Which helps your company to focus on its other resources and core competencies, and this feature is not available in standard delivery

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admin April 21, 2023 0 Comments

How often should cycle counts be performed?

Inventory cycle counts is one of the important practices that ensures that your inventory records are accurate and free from any fraud, and Inventory cycle counts allows tracking the movement of inventory in terms of outgoing or incoming, and thus knowing the turnover rate of each product, and accordingly order management are prepared from Items that are not available, or orders for fast-revolving products in the appropriate quantities, and this is only done by continuous monitoring of stocks, and in this article on LOGSTIAT we will show you how often cycle counts should be performed.

What is an inventory cycle count?

An inventory cycle count means counting a small amount of inventory you own on a specific day without having to do a completely manual inventory, and it is a type of inventory sampling technique that allows you to match the accuracy of your inventory records with the actual inventory available.

Why Are Inventory Counts Important?

The process of inventory counting is very important, as it allows you to know the inventory that you have at a specific time. Here are a number of points that show you the importance of inventory counting:

1. Avoid running out of stock

Inventory counting helps you to store your items in an orderly and accurate manner and thus forecast demand,

And as a result you will be able to improve your inventory levels, and thus lower costs and higher revenue.

2. Determine the possible losses and reduce them

Inventory counting helps you determine and prevent your potential loss by determining how long and how much inventory you own.

3. Determine your inventory accurately

As we talked about in the introduction, inventory counting gives you complete and accurate information about your inventory levels, thus providing clear information for the entire supply chain management.

How often should inventory cycle counts be done?

There is no fixed number for calculating inventory cycle counts, there are many factors that in turn affect how inventory cycle counts, where:

  • The value of inventory
  • Inventory turnover
  • The amount of seasonal demand for your inventory
  • How accurate the inventory is and the efficiency of your employees

All of this will enable you to determine how often cycle counts should be performed.

Best practices for determining when to perform inventory cycle counts

cycle counts

Although there is no fixed number for calculating inventory cycle counts as mentioned in the previous section, there are a number of recommended practices that can help you determine how often cycle counts should be performed:

1. ABC Analysis Cycle Counting

ABC analysis is one of the ways to help companies or factories focus on controlling the more important inventory. For example, class (A) items include about 20% of your items but contain 70% of your inventory value,

And class (B) items include about 50% of your items but It contains only 5% of your inventory value, also Class (C) items include 30% of your inventory but contain only 25% of your inventory value and so on.

2. High-Usage Cycle Counting

If there are items that are delivered frequently, they should be counted more frequently no matter how expensive even if they are expensive, then the items with high and frequent use should be counted frequently.

3. Control Group Cycle Counting

If you are calculating specific parts of your inventory to determine whether or not your entire inventory is accurate, of course, the Control Group Cycle Counting method is suitable.

Thus, you do Control Group Cycle Counting more than once a month, which helps you identify any errors in your stock.

4. Random Cycle Counting

If you have a large amount of similar inventory, the Random Cycle Counting method is best suited, which means that you take a part, but not the whole, inventory to check how well the inventory matches what is already there.

How to automate inventory cycle counts

Inventory management systems take two forms, either manual or automated, and a large number of companies have started moving towards Automating the Cycle Counting Process, through:

1. Use of inventory management software

Traditionally, warehouse owners write inventory data manually, but with automation, inventory management systems have become more appropriate, more accurate, saving time, effort and labor costs, thus eliminating additional costs.

Inventory management systems transfer and process inventory data automatically and then upload it to your own system. The data is also updated periodically, which helps in promoting more effective inventory management.

2. Use of mobile scanners

Instead of hand-delivering and designing count sheets, there are mobile scanners, which provide inventory data by scanning the barcode on each item in your inventory.

That data is then transferred to your inventory system easily and quickly, so these mobile scanners make it easy to manage your inventory in real time.

So automate inventory cycle counts helps you keep track of your inventory properly and audit it in real time, eliminating tedious work and extra costs.

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admin April 21, 2023 0 Comments

What is LCL Shipping? All you need to know about it

What is LCL Shipping? Sea transportation has been the main mode of international trade for centuries and is still a popular mode of transportation due to many factors, such as high load capacity, low cost and reliability in bad weather, and sea freight is also a preferred solution for long-distance shipments, and there are several types of sea freight, And speaking of sea freight, you need to know the difference between FCL and LCL, and in this article we will discuss together All you need to know about LCL Shipping ,then introduce what is meant by FCL Shipping, and then we will show the most prominent differences between FCF and LCL Shipping.

What’s the meaning of LCL Shipping?

It is less than the container load, it is more convenient and manageable for small cargo volumes, by which moderate quantities of cargo belonging to several shippers are accumulated until the container is filled.

Although using an LCL container may be a somewhat slower alternative for ocean shipments, it is cheaper because you share costs with a number of other shippers, so you will not be able to bear the cost of the container alone.you may need to know cost of goods sold

Types of LCL Shipments

LCL Shipping

Speaking of the types of LCL shipments, we find that there are two types:

1. LCL Shipment in Boxes

In which goods or shipped items are packed in boxes, some accept stacking and others do not, depending on the nature of the shipment itself.

This type is the most economical compared to the other type of LCL shipments, but its main drawback is that in this type of shipment, the shipment is highly prone to damage, due to the accumulation that sometimes occurs.

2. LCL Shipments in Pallets

In which the goods are packed in pallets, the level of safety is higher than the previous type, where all the items are secured by rubber bands or coils as well.

Also, shipping in this type provides ease of handling and therefore the goods are not damaged, especially since of course LCL shipments go through many passes.

Is LCL Shipping the right choice for you?

You may be wondering what the best option for you is.Are LCL shipments right for you or not? Simply, the answer to that question depends on a number of factors that you must consider before deciding whether LCL shipments are the most appropriate fit for your needs, as:

1. The size of your shipment

LCL shipment is most suitable when your shipment volume is from 33 cubic meters or 1200 cubic feet.

2. Shipping time

LCL shipment takes longer than FCL shipment, and this process takes an average of 5 to 7 days, due to a number of factors, the most important of which are:

  • Initially your LCL shipment is combined with other LCL shipments that are assigned to the same container.
  • The container with all LCL shipments is transported from the consolidation warehouse to the port. you may need to know optimize Warehouse Layout
  • After arriving at the port, the container is loaded onto the ship, and once it reaches the destination, the container is moved to another warehouse, where all LCL shipments are separated from the rest of the shipments.
  • Finally, your LCL shipment is assigned, released, and transported to its destination.

3. Your shipment passes through more than one point

LCL shipments are known to have more traffic at touch points than FCL shipments, and this is because LCL shipments need to be handled, loaded and unloaded more than once before they reach their final destination, since they contain more than one shipment in one container.

How Does LCL Shipment Work?

LCL Shipping

As we mentioned, LCL shipping involves the integration of more than one shipment into one container, and the following are the steps that LCL shipping works with starting from packing and preparing the LCL container, all the way to the arrival and receipt of your goods at the port:

First | Transportation to the port

After completing the process of preparing and packing the LCL container, it is transferred directly to the previously agreed port of departure, and after its arrival at the port, it is transferred again to the hand of the shipping line, and then shipped to the destination port.

Second | Recharge the shipment

If you are shipping to a secondary port, your LCL shipment is re-shipped to another container, and sometimes the same container waits some time for more goods to fill the container, before proceeding to its final destination.

Third | Reach the destination

After the LCL container arrives at the destination port, the shipping agent takes the order, assembles the container and transports it to the deconsolidation warehouse, where the goods are individually disassembled.

Fourth | Receive your goods

It is the last step in which the consignee goes to the warehouse to receive his goods, and then the goods will have already been transferred from the deconsolidation warehouse to the final destination warehouse, which is the same from which you will receive your goods.

What is FCL Shipping?

Before viewing the difference between LCL Shipping and FCL shipments, we first need to know what FCL shipment is, It is the full container load i.e. the use of a full container for a single shipment,

Meaning that the container can be loaded and closed safely knowing that everything inside belongs to the same owner.

This type of container is suitable in the event that a large amount of goods has to be exported, and one of its advantages is greater profitability for goods with a volume equal to or greater than 15 cubic meters.

It also provides additional security for the goods thanks to its airtightness and delivery service since the container will make its way directly from its origin to its destination without stopping at ports along the way.

What is the Difference between LCL and FCL?

LCL Shipping

After we learned what is meant by both LCL Shipping and FCL shipping, there are a number of differences between FCL and LCL, the following are a number of points that illustrate the most prominent differences between them:

  • The main difference between FCL and LCL Shipping is that the buyer shares space in a container for an LCL shipment, compared to a full container space rental under an FCL agreement.
  • LCL Shipping is a method that combines multiple shipments into one common container, meaning that companies that want to import smaller amounts of inventory can pay for the amount of space they use inside the container instead of having to rent out the entire container.
  • FCL shipping is where you pay to use a whole container instead of paying to use a part of it, and when shipping with FCL, there is a fixed price for the container and you have access to all the space available in it unlike LCL Shipping where you only use and pay for a specific space.
  • Shipping with LCL Shipping is somewhat economical if you are only shipping small quantities (more than 0.5m³ and 100kg) because you only pay for that small amount of space.
  • If you are looking to ship more than about 20m3, FCL is generally the best choice.

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admin April 21, 2023 0 Comments

Order Fulfillment: How to set it up + Manage Online Orders

E-commerce retailers need robust order fulfillment strategies in order to retain customers and build a good reputation for them and their online brand. Square brand is one of the powerful solutions companies are turning to so that they can accept credit cards easily and affordably. Indeed, the Square brand has achieved remarkable success in e-commerce, and in this article we will talk about how to set up a fulfillment system on your Square Online site

Top ecommerce sites require powerful fulfillment solutions

Retail fulfillment for ecommerce is very important, because it is in fact one of the most important components of the e-commerce supply chain, which entails building a good online brand reputation.

Simplified fulfillment strategy helps increase order accuracy and reduces the likelihood of buyers dropping out of their shopping cart—building customer loyalty toward your brand.

In fact, businesses have a few different fulfillment options for fulfilling customers’ shipping orders, and they are:

  • Self-fulfilling orders in-house.
  • Managing a warehouse
  • Partnering with a third-party logistics (3PL) company.

What is Square? 

order fulfillment

Before we start talking about order fulfillment, we will first need to get to know Square, which is one of the powerful fulfillment solutions that supports companies working in e-commerce by providing them with a set of business management tools.

In addition to making it easier for stores to obtain credit cards, it is an electronic platform that makes it easier for retailers to set up an online store,

Along with a number of other useful services, such as processing payments and providing individuals with innovative delivery solutions.you can try our Delivery Management Software To access these services

Square order fulfillment

There are a number of fulfillment options Square offers you, and here are the top 4 types of square order fulfillment:

1. Delivery orders

The first type is Delivery orders, and Square has helped make it easier to fulfill orders locally, by allowing your customers to have their order delivered from their nearest physical location.

2. Pickup orders

The second type is Pickup orders. Customers who buy items online through your online store can pick it up themselves from their nearest retail location, with an automated text message sent to them when their order is ready.

3. Curbside orders

The third type, which some customers prefer, is the Curbside Pickup, in which orders are delivered to customers manually by parking their cars in designated areas, providing greater safety for customers.

4. Shipping orders

Our fourth and final type is shipping orders, where Square facilitates the process of shipping items to customers in a simple number of steps.

It integrates with all possible fulfillment solutions so that the process goes as easily and as efficiently as possible.

When shipping to nationwide customers, you have 2 options

E-commerce companies offer two key options for shipping to nationwide customers:

1. In-house fulfillment

It includes fulfilling orders yourself, and the in-house fulfillment process often takes somewhat longer,

Because that process involves managing inventory, shipping orders, as well as picking and packing.

Also in this type of shipping there are many other hidden costs, such as the costs of packaging materials suppliers, the costs of shipping insurance,

And the opportunity costs of spending too much time on the logistics, which makes In-house fulfillment an ineffective model.

2. 3PL (third-party logistics) fulfillment

It is the second best option compared to the first option, as 3PL (third-party logistics) fulfillment can help you provide an efficient and robust fulfillment center network, along with providing advanced technology.

This new technology will help you in automating the implementation process and thus speeding it up, and 3PL (third-party logistics) will save you a lot of time and effort to invest in growing your business.

3PL fulfillment allows your store to grow faster

3PL’s fulfillment technology is very useful for commercial companies, as it helps in automating most of the processes,

Thus, reducing potential human errors, in addition to saving the time and effort that you will spend in completing and following up on logistics services.

3PL provides you with the ability to focus on promoting your online store, by delegating the execution of orders to experts and specialists,

Below are a number of benefits that syncing your store with 3PL’s fulfillment solution can provide you:

1. Automated order processing

3PL execution technology can help automate some order management processes, providing you with the possibility of automated order processing.

2. Optimized storage

3PL will provide you with the right space for your inventory, they are experts in warehousing and order fulfillment,

And they handle a number of other aspects of order fulfillment, which will bring you maximum efficiency in order fulfillment in the fastest time.

3. Distributed inventory

3PL will also help you divide inventory across multiple fulfillment centers thus reducing shipping costs as well as delivery times for customers.

Choosing your order fulfillment partner

order fulfillment

After we talked about order fulfillment and the importance of choosing an order fulfillment partner, you should consider a number of things before choosing your order fulfillment partner, as:

1. Define your budget

Fulfillment costs vary based on the 3PL you partner with and their pricing model, so before partnering with one of them check their rates and your budget.

2. Review the locations of the partner’s distribution centers

When choosing an order fulfillment partner or working with 3PL check that they have several well-located distribution centers so you can split your inventory across more than one location.

This will save you the possibility of having your inventory available in many shipping destinations, thus significantly reducing shipping costs.

3. Check out the available packaging options

A number of 3PLs give dealers the option of using standard packaging or custom brand packaging.

They also have partnerships with individuals who offer innovative packaging solutions that you can take advantage of if you like and use custom packaging.

4. Check the availability of customer support

Customer support helps provide peace of mind for you and your customers as well, so check with your partner about the customer service they provide and how they can provide a complete view of the implementation process.

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admin April 21, 2023 0 Comments

What are the 3 major inventory management techniques?

Inventory management techniques are a useful tool in the hands of management, they ensure that the right type of stock is available, at the right time, in the right place and in the required quantity. Inventory management techniques also help in enabling managers to match the stock displayed in the books of accounts with the available, and in this article on  LOGSTIAT logistics solutions We’ll show you what are the 3 major inventory management techniques.

What is inventory management? 

inventory management techniques

Inventory management is one of the most important methods of enterprise management, which needs strict control, so as not to be exposed to any theft or embezzlement,

This needs periodic inventory in order to ensure that the inventory is intact and there is no shortage or deficit in the stores.

What is meant by inventory management are the tools and techniques that are used for the purpose of tracking, delivering and ordering inventory,

Which is one of the important things, as the majority of the capital of any company is directed into its inventory.

What are the 3 major inventory management techniques?

There are 3 very common inventory management techniques, and below we will show you the 3 major inventory management techniques in some detail:

1. The Push Strategy for Inventory Management

Our first strategy is The Push Strategy for Inventory Management; in which inventory is controlled by pushing items from the manufacturer to the warehouse, and then the customer buys those items with the available inventory.

In order to take advantage of this strategy, you need to accurately forecast the demand for your products, and this will be achieved by understanding the quantity required of the product at any time of the year.

You can achieve this through the use of inventory management system, which will provide you with all the information you may need about how much inventory they may need to order over the course of the calendar year.

2. The Pull Strategy for Inventory Management

The second strategy is The Pull Strategy for Inventory Management, in which the warehouse pulls only the item that the customer orders,

That is, instead of an item moving down the supply chain management, it moves up, and in fact that process takes a lot of time.

Therefore, The Pull Strategy for Inventory Management is used specifically with those valuable items or products that are in unexpected or low demand.

3. The Just-in-Time Strategy (JIT) for Inventory Management

inventory management techniques

Just-in-time is a Japanese inventory management technique, which emphasizes the maintenance of “zero inventory”.

As the name implies, it merely refers to maintaining such amount of stock that is required at present, to carry out the process of production or trade.

Some organizations first receive demand from customers, and then they proceed to stock-purchasing and manufacturing activities.

Following are the various advantages of JIT:

  • JIT benefits by ordering new stock only when old stock is about to expire. Thus, it reduces the obsolescence or expiration of the current stock.
  • It ensures positive cash flow, with less working capital in stock.
  • It also provides for optimizing inventory cost by reducing storage and insurance expenses.

However, one of the major drawbacks of this technique is that it can lead to stock running out. Because there is a possibility that the procurement team will fail to order the goods on time or delay the delivery of inventory.

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admin April 21, 2023 0 Comments

Just In Time Inventory Management

Just in Time Inventory Management, No one disagrees on the extent of the importance of inventory as one of the most important pillars of the production process within the company, in addition to being one of the most important elements of the financial position, but it should be noted that the methods of inventory management are always in constant development and updating because of this element of great importance for companies.

So all companies always harness modern technology in order to improve the methods of inventory management in order to manage the stores as accurately as possible and in the fastest time and with the least effort.

And this is the difficult equation that all companies seek to achieve, and in this article on LOGSTIAT logistics solutions we will show you one of the modern methods of inventory management, which is Just in Time Inventory Management.

What is inventory management?

Before talking about Just in time meaning, we will first need to know what is meant by inventory management. Inventory management refers to the process of ordering, storing, and using a company’s inventory.

This includes managing raw materials, components, and finished products, as well as storing and processing these items.

Just in time meaning (JIT)

Just in Time

The company uses different methods of inventory management, depending on the type of business or product being analyzed, and one of the best inventory management methods is the just in time (JIT) method.

As for the meaning of just in time (JIT), it is one of the methods of inventory management, which is the process of ordering and receiving inventory for production as required.

This means that the company does not have safety inventory and operates with low inventory levels, this strategy helps companies reduce their carrying costs by increasing efficiency and reducing unnecessary costs.

Importance of just-in-time

Just in Time

The Just-in-Time (JIT) method was introduced by Taichi Ono, the founder of the Toyota Global Group, Ono created this method when he noticed the increase in the number of production lines,

That depends on the manufacture of a large amount of one product before moving to the production of another product and the increasing focus of demand on the degree of product diversity rather than the quantity produced.

The just in time (JIT) method is very important as it is one of the best inventory management strategies, as it:

1. Reduces inventory waste

As the just in time (JIT) method reduces the damaged products, through the procurement department requesting the appropriate quantities of raw materials that you need in the production process.

Thus, there is no surplus or deficit in the stock, it allows companies to save significant amounts of money and reduce waste by keeping only the inventory they need to produce and sell products.

2. Decreases warehouse holding cost

As the just in time (JIT) method provides the right items to the production department at the right time and with the required quality, making the stock quantity reach zero.

The Just in Time Inventory management approach reduces storage and insurance costs, as well as the cost of liquidating or disposing of excess inventory.

Advantages of JIT Inventory

Just-in-time inventory management has many advantages that distinguish it from other inventory management methods, as:

  • Its production processes are short; which means manufacturers can move from one product to the next quickly
  • Reduce costs by reducing the need for warehouses.
  • Promote continuous improvement in the production process.
  • Increase efficiency.
  • Reduce money spent on raw materials, as it allows companies to spend less money on raw materials; because it only buys the resources you need to fulfill confirmed orders and nothing more.

Disadvantages of JIT Inventory

In addition to the many advantages that distinguish just-in-time inventory management from other inventory management methods, there are a number of disadvantages as:

  • Possible disruptions in the supply chain, if a raw material supplier encounters a problem and cannot deliver goods on time; this may disrupt the entire production process.
  • Sudden unexpected demand for goods may delay delivery of finished products to customers. You can organize all this through Delivery Management System.

JIT system

Just in Time

Just in Time (JIT) system is a management strategy that reduces inventory and increases efficiency, and the success of a “just in time” production process depends on stable production, quality craftsmanship, zero machine downtime, and reliable suppliers.

Just-in-time inventory management systems reduce production costs; because manufacturers don’t have to pay for inventory storage, they don’t have unwanted stock left if an order is canceled or not met.

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admin April 21, 2023 0 Comments

Warehouse Challenges and 5 Strategic issues facing Warehouses

There are many warehouse challenges, and warehouses are of great importance in any facility, so warehouse managers need to be constantly monitoring and tracking warehouses in the facility, and they also have the flexibility and ability to devise quick solutions that enable them to meet the warehouse challenges, and in this The article on LOGSTIAT will show you the warehouse challenges, and how to meet the warehouse challenges

Warehouse challenges

Warehouses exist in constantly changing environments, especially after the huge development in global supply chains,

Which clearly affects warehouses, and in order to keep pace with these developments and meet warehouse challenges, you need to have a number of flexible and scalable strategies.

Warehouse challenges are very common and widespread, especially which entail irregular demand, additional costs, and inaccurate inventory information.

And all those warehouse challenges will need a set of strong methodological solutions, along with managers who are able to achieve the best possible performance under the difficult conditions that warehouses may face.

Strategic issues facing warehousing

warehouse challenges

There are many strategic issues facing storage, and the following are the most prominent of those issues:

  • Cost control
  • Expires control
  • Cleanliness
  • Keeping store equipment and supporting item
  • Provide safe security

Five strategic issues facing warehouses today

With the increase in operations in warehouses and the growing demand, especially in electronic stores, and the digital transformation that we are witnessing today, the problems facing warehouses have increased,

And the following are the most important five strategic issues facing warehouses today:

1. Accuracy of inventory

One of the most important issues that warehouses face at the present time is their inability to accurately determine the stock,

Which leads to a sudden out of stock or a large surplus of stock, thus, expenses will increase significantly,

And this will, in turn, be reflected in the organization’s ability to meet customer demands.

2. Warehouse location and monitoring

Improper location of the warehouse coupled with the inability to monitor warehouse operations would lead to increased costs as well as slowing down operations in the warehouse.

3. optimize Warehouse Layout

Inability to utilize warehouse space is clearly a common problem in warehouses, which entails many problems such as reducing the speed of movement and incurring additional costs.

4. Manual operations

Despite the great development that we are witnessing today, there are some warehouses that still rely on manual processes; there is great importance for these warehouses to switch to the use of automation.

 5. Unnecessary operations

It is one of the strategic issues that plague repositories today, and barcode technology can help you reduce that problem by avoiding the problem of passing documents through multiple hands.

Warehouse management problems

warehouse challenges

The function of warehouses is one of the most important supporting functions in institutions and companies. As it plans and organizes the storage and maintenance of materials and supplies customers or key departments within the company with their needs in a timely manner.

This ensures that its work continues efficiently and without interruption. Therefore, there is great importance for warehouse management, and despite its importance, it is not easy at the same time. There are a number of challenges facing this process, and the following are the most prominent warehouse challenges management:

1. Inaccurate inventory

Dealing with inventory needs two complementary matters, namely accuracy and efficiency. Therefore, inaccurate inventory entails many problems, such as the problem of the inability to maintain inventory levels correctly, in addition to the problem of the accumulation of obsolete inventory.

This results in inefficient operations and consequently a significant decrease in productivity with a significant increase in expenses, and this means huge losses in revenue.

2. Poor warehouse planning

Poor warehouse planning is one of the common problems that warehouse management suffers from, such as the lack of effective use of space, which results in small storage space despite the presence of unused space properly, and this in turn will directly affect the profits of the facility itself.

3. Excess inventory

Sometimes it happens and there is a large accumulation of goods, which incurs additional costs for the facility, and it is one of the main warehouse challenges management

4. Low traceability and monitoring

The inability of warehouse managers to monitor warehouses and track the flow of inventory inside them will result in the inability to control the goods as well as impede the supply process.

5. Too many unnecessary procedures

Unnecessary and repetitive procedures is one of the common warehouse challenges management suffers from, as sometimes there are a number of unnecessary procedures that entail additional steps that consume more time, effort and money.

6. Having damaged products

One of the common issues that warehouse management suffers from is also the damage of some items or products in warehouses, which entail additional costs for warehouse operations.

7. Human capital problems

Workers may not be sufficiently trained, which delays the supply chain management and even reduces its efficiency and causes more costs.

Warehouse solutions

warehouse challenges

There are many warehouse solutions, which depend on the use of modern technologies and advanced technology. LOGSTIAT is one of the best companies that can provide you with various logistical solutions, especially warehouse solutions. Here are some of the services that LOGSTIAT can provide to you:

1. Warehouse management

  • Managing locations for shelves and storage.
  • Set and change product locations.
  • Print the list of pick-up, preparation, packaging and then deportation to the shipping companies.
  • Define the powers of each employee.

2. Billing and collection system

  • A special option for making invoices for each customer you have with the transaction.
  • Determining the amount for each update is done through the LOGSTIAT system.
  • And many options support the development of your business.

3. Operations and orders management

  • View all orders received from all channels
  • Create, view, search and edit orders.
  • Returns management.

4. Track orders and shipping

  • Inform the customer about shipping updates directly.
  • View and manage customer information.

5. Inventory control system

  • View stock levels in real time.
  • Add, view and edit inventory.
  • Predict stock levels accurately.
  • Managing purchase orders and receiving incoming stock.
  • Reserve or allocate inventory as necessary.
  • Associated with more than one e-commerce platform.
  • Managing seasonal offers to make offers through LOGSTIAT for each customer.

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admin April 21, 2023 0 Comments

Wow your customers with custom packaging

Custom packaging has become one of the things that some companies rely on to increase their profits and impress their customers. It comes after the stage of production or the completion of the manufacture of a particular product, which is a stage no less important than the previous stage, which is the stage of packaging that will preserve the product and ensure its safety during the storage period and until the product reaches the consumer, and customized packaging has great benefits that make it worth investing in it, and in this article, at LOGSTIAT we’ll show how you can impress your customers with custom packaging.

What is Packaging?

Custom packaging

Packaging is one of the processes that guarantee you the safety and quality of products and the ability to market them, as the best way to market is to provide a good product, of high quality, you may not be able to do this without proper packaging and good packaging.

And because any type of product and merchandise needs a very good packaging method, each product needs to provide a different environment during its packaging to prevent damage and maintain its safety until it reaches the user. Here is the importance of packaging.

By packing the product and its packaging, it is possible to know the date of its production, the validity period, the type of product and all the important information about it that both the producer and the consumer need to know.

Custom product packaging

Custom packaging is different from standard packaging, custom packaging is a method of designing custom packaging to put products or goods in, and this type of packaging is intended for your company or your product only.

Custom packaging helps protect the product and help market it further because it is distinct from the standard packaging used by other companies.

Did you know that LOGSTIAT offers inventory management system? Try it now!

The difference between custom packaging and standard packaging

Standard packaging is a standardized form of the packaging in which products are packaged, and it is not suitable for those products that are distinguished or more prone to breakage, for example, but it is more economical and does not require large expenditures on it.

As for custom packaging, as we mentioned in its concept previously, it is a distinctive design for the product you offer, and it is safer for your product if that product is unique or more prone to breakage, and helps you to raise the value of the product you offer and attract the attention of your customers to it, but in return it will need From you an investment in it, that is, some additional expenses.

Is custom packaging worthwhile?

Custom packaging

The process of product packaging is very important, because it protects the product first from any potential damage, and also helps make the product special and unique, especially if this type of packaging is custom packaging, and this type provides a unique experience for customers.

All you need to know about order fulfillment 

Custom packaging helps you stand out from your competitors in the market, and even get a more positive response from customers than the standard packaging that most companies rely on.

But custom packaging is not easy, and it requires some costs as well, and here the question that occupies the minds of producers arises, is custom packaging worth investing in, and will it bring satisfactory returns?

Quite simply, yes, but this only applies if you do custom packaging that is appropriate for your product, and here are the benefits you will gain from using custom packaging for your products:

1. Better protect your products

Packaging generally protects products against any damages, but if you are offering products that are unique or more prone to breakage, custom packaging will be more suitable for you than standard packaging methods.

Where custom packaging provides greater scalability to preserve your unique product against damage, you can add extra padding or strengthen the packaging itself and so on.

2. Providing an outstanding customer experience

In general, the better the packaging, the better the customer experience will be, which will make you satisfied with the service you provide to them, and this is the main goal of any company.

In fact, customized packaging makes customers happy and satisfied as well as fascinated, and it will make them feel that the product they received is special in one way or another, unlike traditional packaging.

Learn about warehouse challenges and avoid them now!!

3. Increase your brand value

Custom packaging

Perhaps one of the most important things about investing in custom packaging is that if it is used appropriately for your products, it will greatly increase your brand value.

As the customized product packaging makes customers feel a kind of distinction and special, which makes them accept again and again to get the products you offer.

So we can say that customized product packaging increases brand awareness and provides superior customer experience compared to standard packaging.

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admin April 21, 2023 0 Comments

Route Optimization the Ultimate Guide

Every organization strives to retain its customers, and route optimization is one of the modern ways to help fulfill customer demands as fully as possible, thus achieving company goals. And directly improves the cost of delivery of customer orders, and even ensures that they are all delivered in a timely manner. , and there are many benefits that can provide for you. In this article, we will present the definition of route optimization and what are its benefits. We will also talk about route optimization programs and the extent to which routes can be optimized and planned manually.

What Is Route Optimization?

It is the process in which the routes are optimized, thus improving the efficiency and effectiveness of the delivery process, and reducing the cost as well.

The process of optimizing routes effectively enhances orders and deliveries significantly, as well as finding the best path between different paths and not just the closest path. We provide you Delivery Management Software Which includes many services that serve your shipping process smoothly.

And it is the way by which you can determine which route is more efficient, while using Route Optimization there is a number of factors to consider, such as weather, traffic, etc., which helps in saving time and fuel as well.

Benefits of route optimization

Route Optimization

Optimizing your routes is important for any company, which helps you avoid the costs of routing your drivers.

Route optimization helps you save money, time, and effort also by automating processes, here are the most important benefits of route optimization:

1. Reduce fuel costs

significantly reduces fuel costs by helping to select the best route, thus spending less time on the road, and that means less fuel consumption.

2. Reduce vehicle maintenance costs

As mentioned in the previous section, route optimization spends less time on the road, thus reducing vehicle breakdowns or wear of parts, thus significantly lowering vehicle maintenance costs.

3. Improve customer experience

Route optimization systems determine the real-time around where the driver is to estimated delivery times, thus accurately delivering orders on time,

While allowing customers to easily access delivery service agents and drivers, thus enhancing the customer experience.

4. Reduce manual route planning

helps in automating processes, thus spending less time on doing administrative work and other tasks manually,

Through automation will save time and effort and guide the business owner to get new business and other revenue-generating tasks.

5. Rapid response to sudden changes

Sudden changes in the road often occur, such as congested traffic, accidents on the road, sudden weather fluctuations, etc.

But with the use of route optimization, these changes can be faced and quickly responded to.

In these cases, route optimization systems notify drivers in real-time, thus addressing that order and preventing requests from being delayed and delivered on time.

6. Improve driver satisfaction

As route optimization helps in achieving the satisfaction of drivers as well, by guiding them to the best routes.

And thus avoiding overlap between regions for delivery or falling into unexpected traffic and not completing all deliveries and will positively affect customer satisfaction as well.

Route-optimization software

Route Optimization

Route optimization software is a modern tool that helps in meeting company goals and customer demands more efficiently and effectively by relying on process automation.

Route optimization software helps optimize customer order delivery costs while ensuring that all customer orders are delivered in a timely manner.

The route optimization software is based on the use of modern technologies based on a balanced approach that can be customized to serve the company and its customers.

There are many types of route optimization software but you should choose the one that offers you a number of advantages, such as:

  • Provide accurate step-by-step directions
  • Determining the amount of fuel used during a certain period of time.
  • Allowing you to draw multiple paths
  • Specify the amount of time it takes to deliver and order management, and what is the distance traveled.
  • Allow your customers to track the status of their orders themselves.

And there are many other features that the route optimization software of your choice must have, to ensure your money is invested in the right software and to ensure a high-quality route planner.

Can Optimize and Plan My Routes Manually?

Yes, you can, and this will only be suitable for small companies, which do not have increased demands and therefore there will be few human errors.

But despite this, you will also have a problem when planning routes manually which is that it is impossible to predict the condition of the road, and what the weather will be like in the next two hours.

Therefore, using route optimization will save a lot of time and burden, and will make sure that the workload is balanced so that no driver is overworked or underworked.

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admin April 21, 2023 0 Comments
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