The logistics sector is becoming increasingly digital, while management tools are now particularly adapted to this ecosystem, the vocabulary of which must be known.
Logistics made easier by digital tools?
Logistics refers to the set of activities that manage the physical flow of goods, from the sourcing of raw materials to the delivery of products to the end customer. This includes complex processes such as storage, inventory management, transportation, order preparation and returns management. Logistics plays a key role in the efficiency of supply chains and customer satisfaction by ensuring that products are delivered to the right place, at the right time and in good condition.
Logistics software, such as warehouse management systems (WMS) or transportation management systems (TMS), provides a technological response to these challenges. By automating repetitive tasks and providing real-time visibility into operations, these tools help optimize processes, reduce human errors, and save time. In addition, they facilitate decision-making through data analysis and predictive planning, allowing companies to better anticipate needs and react more quickly to unforeseen events. This software can help improve the efficiency, profitability, and competitiveness of companies.
The logistics lexicon
Here are 15 terms to know in the logistics field, sometimes associated with the digital sector:
- Supply chain: The supply chain refers to all the processes involved in the production and delivery of a product, from the raw material to the final consumer. Supply chain management software allows you to centralize information and optimize each step.
- WMS (Warehouse management system): WMS software is designed to optimize warehouse management by automating tasks such as inventory tracking, location management, or order preparation. It helps increase efficiency and reduce human errors.
- TMS (Transport management system): A TMS is software that helps plan, execute, and track freight shipments. It centralizes information about carriers, routes, and costs, helping to reduce transportation times and expenses.
- EDI (Electronic Data Interchange): EDI allows the electronic exchange of documents between companies, such as purchase orders or invoices. It replaces paper exchanges, speeding up processes and reducing errors. Logistics software often integrates EDI modules to automate these data flows.
- Cross-docking: This is a logistics method where products are directly transferred from a receiving vehicle to a delivery vehicle, without going through storage. Warehouse management software can facilitate this operation by synchronizing arrivals and departures.
- Just-in-Time: JIT, for Just-in-Time, also called lean flow, is a management method where materials are ordered and received just when they are needed, reducing storage costs. Production management software allows these flows to be coordinated in real time, thus minimizing unnecessary inventory.
- Perpetual inventory: It allows real-time tracking of stock levels through the use of software and automation systems such as RFID (see below). This method offers greater accuracy and responsiveness in stock management.
- Last Mile Delivery: Last mile delivery refers to the last stage of the supply chain, where the product is delivered to the end customer. Transportation management software optimizes this stage, taking into account geolocation, route management and customer preferences.
- Reverse Logistics: Reverse logistics involves managing product returns and reintegrating them into the distribution channel or recycling them. Some software makes this easier by tracking returned products and optimizing their processing.
- RFID: RFID, for Radio frequency identification, is a technology used to identify and track objects remotely using radio waves. It is widely used in logistics for tracking goods. Management software often integrates this technology to improve product traceability.
- Slotting: Slotting is the process of organizing items in a warehouse in a way that optimizes workflows and reduces the need for order pickers to move around. Some management software uses algorithms to recommend the best layout for products.
- Demand planning: This involves predicting product needs to adjust production and supply. Data analytics can help anticipate needs accurately, reducing stockouts or surpluses.
- Lead times: Also called Lead Time, it refers to the time needed to carry out a logistics operation, from the receipt of an order to its delivery. These times can be reduced by automating certain steps and optimizing task planning.
- Picking: Picking is the operation of preparing orders in a warehouse. Warehouse management software helps optimize picking routes, increasing the efficiency of order pickers.
- Blockchain: Blockchain in logistics allows each step of the supply chain to be secured and traced, ensuring transparency in exchanges. Some logistics software is beginning to integrate this technology to improve the trust and efficiency of transactions between partners.
