Business Logistics

Business Logistics

There are three main processes in the DPD Logistics Company. The first core process of the company is the transport and fleet management. As a transport agency, the company ensures that it offers reliability. Usually, transport and fleet managements requires that require that a company controls the inflow and outflow of goods and services. Inventory control provides intensive reporting capabilities that keep a company at the peak of the inventory status (Koch, 2014). Some of the highlights of inventory control include completion of part information such as vendor, components, quantity, images, and substitute items. In this regard, any form of delay in the delivery of goods will cause massive delay in the manufactures and distributions of products. This means the system of transportation chosen must be that one which is not only reliable, but also able to distribute the finished products to customers in large quantities. Transportation is one of the major costs that organisations have to incur in the processes of product development and distribution (Goodale et al., 2008). Usually, inventory control boosts the levels of customer service as it operates as the bulwark of an effective distribution or manufacturing solution. In a more complicated project management, control of inventory can be related with the module of Job cost to assist in tracking all the expenses related to the inventory for a given project (Mercado, 2008). Most successful and well-organized businesses depend heavily on systems for managing inventory to ascertain that enough levels of inventory are available to satisfy the demands of their customers. To be more effective in inventory and logistics management, the transportation costs must be kept at minimum (Obermaier & Donhauser, 2012).

Picking goods

Control of goods flow

Delivery of goods

The second process is the inventory management. DPD Logistics is particularly concerned with eliminating some of the most common barriers to supply chain management (Abuhilal et al., 2006). While some of the most outstanding strategies employed across the globe can aid in cutting down on costs and place businesses in a position to focus on primary competencies, these strategies may also work to expand the supply chain to its culmination point. Without prior knowledge, any company’s set goals and objectives aimed at becoming a formidable force to reckon with can leave these companies at risks (Chopra & Meindl, 2013). Serious supply chain barriers and risks can work to decrease the company’s profit margin, impede into the market share, maximize the costs, result in higher budget projections, and threaten the process of production and supply or rather distribution. By working closely with the clients, DPD Logistics works to determine the various possible barriers in the supply chain management and come up with possible ways of overcoming the barriers (Jaber, 2009). In this way, DPD Logistics is not only interested in making the supply chain smooth, but it also aims to ensure that their clients do not have to worry about the uncertainties in the supply chain.

Determining barriers

Improving distribution channels

Cutting down cost

The third service of the company is the provision of supplies management opportunities for its customers. The company uses forecasting to make decisions on its inventory management. Forecasting is an important aspect of supply chain management because it determines the new products and services to be introduced and those to be discontinued (Harrison & van Hoek, 2011). At DPD Logistics, the method of forecasting is based on a computer based system that gives information to be used for decision making on organizing, controlling and planning for the operations of a department in an organisation and lows for systematic operations in an organisation. One of the most important functions of management information system is its use in the process of decision making. The process of decision making has four levels: intelligence, choice, design and review (Monczka, 2009). The intelligence stage involves the collection and processing of information relating to the inventory and assets. The decision stage outlines the various alternative solutions that are available for the inventory. This means that the data collected in the intelligence stage can be used to forecast possible results. In the choice stage, the management must chose, from amongst the alternatives, the best alternative that suits the operation management objectives of the organisation (Khader et al., 2014). The choices that have been made are, thereafter, subjected to review as managers learn from their mistakes.


Systematic operations

Improved outcomes

From the analysis of the processes at DPD, it appears that logistics chain managements play an important role in the development and prosperity of organisations. This system not only ensures the raw materials are available in good time, but also ensures that the finished products reach the target customers at the right time and in good condition. To achieve this objective, a reliable and cost effective means of transport must be put into place. The logistics and operations management by the company takes a very simple yet efficient strategy. Thus the processes at DPD Logistics begin with the transport and fleet management and ends with inventory control.


Abuhilal, L., Rabadi, G., & Sousa-Poza, A. (2006). Supply chain inventory control: A comparison among JIT, MRP, and MRP with information sharing using simulation. Engineering Management Journal, 18(2), 51-57.

Chopra, S., & Meindl, P. (2013). Supply chain management –strategy, planning and operations 5th (Global) ed. New York, NY: Pearson Harlow.

Goodale, J.C., Kuratko, D.F., & Hornsby, J.S. (2008). Influence factors for operational control and compensation in professional service firms. Journal of Operations Management, 26(5): 669-688.

Harrison A. & van Hoek R. (2011). Logistics management and strategy: Competing through the supply chain (4th Ed).  FT Prentice Hall

Jaber, M. Y. (2009). Inventory Management: Non-classical Views. Boca Raton: CRC Press.

Khader, S., Rekik, Y., Botta-Genoulaz, V., & Campagne, J. (2014). Inventory management subject to multiplicative inaccuracies. International Journal of Production Research, 52(17), 5055-5069.

Koch O. (2014). Driving effective inventory management. Industrial Engineer: IE, 46(8), 46-50.

Mercado, E. C. (2008). Hands-on inventory management. Boca Raton: CRC Press.

Monczka, R.M. Iandfield, R.B., & Giunipero, L.C. (2009). Purchasing and supply chain management. Mason, OH: Cengage Learning.

Obermaier, R., & Donhauser, A. (2012). Zero inventory and firm performance: a management paradigm revisited. International Journal of Production Research, 50(16), 4543-4555.


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