Logistic
means the part of supply chain management that plans, implements and control
efficient, effective forward and reverse flow and storage of goods, services
and related information between the point of origin and the point consumption
in order to meet customers’ requirements. Transportation, warehousing,
information system and customer service play very significant roles in
logistics function.  Logistic is create
the flow of goods between supply chains partners such as cost, service
requirements, competitive advantage and finally profits can be optimized.
Logistic management process is begin with raw material accumulation to the
final stage of delivering goods to the destination. It may help company reduce
expenses and enhance customer service.

2.2.2 Issue

 

Reverse
logistic is described via most reviews as planning, implementing, handling the
financial flow of raw materials, work-in-progress inventories, finished goods
and wastages. 99Speedmart’s face problems that carry out reverse logistic, as a
unique management on handling the returned goods is no longer nicely set up as
efficient as finished goods management.

            A
few local businesses even opted to hire third party such as DHL to control their
reverse logistic. Lacking of fund country of the artwork statistics such as
technical knowledge and superior software, making it harder for 99Speedmart to
maintain up with multinational groups which have extra capital and
understanding to deal with reverse logistics.

Local
companies have issues whilst again goods are not being positioned returned in
stock inventory as no right management is achieved. The returned goods may then
mix up with the everyday goods causing troubles while selecting and sorting
later. The primary hassle is 99Speedmart does no longer have proper system to
trace back the stock-keeping units (SKUs) of the returned goods, hence adding
it back into inventory is a trouble and time-consuming. Info which include the
motives of returning, physical conditions of the returned goods and accounting
stability could not be update well in most local business implementing reverse
logistic.

 

2.2.3
Strategy

 

Local
companies should invest in the appropriate software to ensure accurate data
capture. It can control the warehouse management system and the accounting
system and provides a quarantine zone to get rid of obsolete items or good
returned. This will then simplify the process of separating items accordingly
to remove or unpack and store useful parts. In addition, local companies also
need to hire third party to manage their reverse logistics. Third party means

2.2.4 Tools, Techniques and Methods

 

            Based
on the issue occur in 99Speedmart, we proposed Warehouse Management System
(WMS) as a tool to solve their problems. Warehouse management system track and
control the flow of goods from the receiving dock of a warehouse or
distribution centre until the item is loaded for outbound shipment to the
customer. The goal of a WMS includes reducing distribution centre labour cost,
streamlining the flow of goods, reducing the time products spend in the
distribution centre, managing distribution centre capacity, reducing paperwork
and managing the cross-docking process. The advantages of using this tool is can
manage warehouse structure, optimize warehouse activity, increase in
efficiency, increase in accuracy, reduce customer complain, replenish stock as
sales occur and monitor receiving and return. A WMS also can improve warehouse
productivity by repositioning product to reduce the distance of that product
and pickers must travel. 99Speedmart can use this system to track inventories
in their retail location and monitor receiving and returns stock. 99Speedmart
can handle 3500 types of product from the SKUs from 3000 branches at all of
their facilities. From that, they can improve in operating costs, customer
service, information visibility and the ability to find a return goods.