TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
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When companies are looking at waste management strategies, they'll discover that some expenditures are going to be involved in the process. But as these strategies come online, the expense in production will create greater value overall than the initial outlay. As a matter of fact, companies will see that their capital budget is increased as a result of the decrease in the number of commodities produced per job, thus the term "green" is being used widely within the waste industry. Many companies have begun to realize the value of producing green products and the waste industry will experience fewer job losses due to the new trend.

Another method which has begun to take root within the logistics industry is risk management. Risk management refers to the identification, analysis, prioritization, and reduction of risks within the supply chain. Often times, logistics providers have not been very effective at this task because of their emphasis on inventory as the main focus. While it's important for logistics to have an accurate inventory, it's also vital to have a high quality distribution system in place. By making certain that all products moving through the company meet quality standards and stringent standards for safety, it's necessary to identify risks and formulate solutions to control them. In this instance, logistics would include everything from using effective shipping practices to having proper documentation and tracking methods in place for every product.

Along with the prevention of defective products from reaching the store shelves, another area which has been neglected in many supply chains is the transportation of these products. A large portion of inventory simply sits on-site waiting to be shipped off to the warehouse. While there may be a need for vehicle transport for items such as perishable items, there could also be a demand for freight services for other non-perishable items such as glass, metal, or electronics. When logistics identifies a customer's need for transportation on-site, they are typically faced with the challenge of finding a vendor with enough expertise, resources, and willingness to work with the customer's specifications to provide the solution required.

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