Standard Shipment Unit and Level of Service
- Author Eugene Smith
- Published April 19, 2009
- Word count 732
Today we'll continue to talk about the improvement in quality of transportation services.
I would like to remind you that company miracle movers, Toronto movers shares its experience in this matter with you.
The choice of standard shipment unit (waggon, container, pallet, manufacturing package etc.) considerably influences "level of service / cost of storage and retrieval technology" ratio. Miracle movers, Mississauga movers will help to choose the most optimal variant. Waggons or containers do not need storage processing and in most cases may be delivered to the client directly from the supplier. In this case cycle time depends on quality of communication within supply chain and selection of reliable suppliers. When changing sales to pallets or manufacturing package, an additional stage of storage processing appears in the process of order execution, at he same time the set of potential customers enlarges considerably. Sales of piece goods from stock need organization of the intra-depot manufacturing (for transformation of production range into trade one), zones for consolidation, packing and marking of goods. All the aforesaid lengthen "order-delivery" cycle, but allow obtaining of the most attractive service for clients. Company miracle movers, GTA movers has a lot of clients and this fact confirms company's great experience in the field of cargo transportation.
Motivation of transportation and storage staff
If the company uses fixed salary remuneration system, then in case of stability it is easy to control staff costs. However in case of irregular demand fixed salary remuneration system implies quantitative adjustment of the staff. In such a way when the demand decreases staff costs are stable, but when the demand increases there are no flexible and effective methods to stimulate the work. Due to the fact that the workload is distributed uniformly, the bonus fund not always may contribute to the wage rate. At the same time salary increase at the given moment may lead to the employees' dissatisfaction when the salary is cut if the demand decreases in future. In case of price wage the slump in the amount of work may lead to mass employees' resignations (first of all professionals will leave the company). In some cases the most optimal solution is the use of combined remuneration system, for example, fixed salary for basic work and price wage for extra work. Miracle movers, Mississauga movers use combined remuneration system in their activity.
General process scheme
The totality of the described characteristics determines the number of stages in order processing and main scheme of storage work. The "order-delivery" cycle time depends directly on the speed of work of all company's operational divisions and level of coordination between them. Company miracle movers, Toronto movers has highly qualified staff, therefore their actions are concerted. The list of possible participants and their activity sequence is as follows:
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Marketing and finance departments forecast the demand and together with logistics department determine the optimal schedule and balance of order intake, organize promotional events, which stimulate clients to abide by the selected schedule;
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Sales department processes orders, checking rightness of their fulfillment, client's creditworthiness and availability of goods in stock. Client is informed if the order is accepted. After that the order is entered into the informational system (this is the beginning of execution cycle).
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Accounts department records the concluded agreements.
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Storage selects and assorts, marks, packages and wraps goods.
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Shipping department makes up the consignment, executes accompanying documents and loads cargo into vehicles.
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Shipping agent organizes the process of delivery and finishes the execution of accompanying documents, which along with itinerary sheet are forwarded to the dispatch service.
Calculation of optimal cycle
The calculation of optimal for the company "order-delivery" cycle time is made in the following way:
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list of necessary operations, taking into account basic conditions and characteristics of the rendered services, is expressed in costs for each of possible variants of "order-delivery" cycle;
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forecast of the increase in sales in case of the increase in service rate is made.
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optimal level is find graphically, tracing the integral curve, which reflects the change of expenses and incomes depending on the increase in service level.
Generally, the cut of "order-delivery" cycle time on the one hand leads to an increase of expenses, and on the other hand leads to the increase of incomes. We hope that the experience shared with you by miracle movers, GTA movers will help you in organization and management of your own business.
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