The term logistics refers to the way an organization goes about re-grouping itself according to transportation, warehousing, inventories, customer service, and information processing (SCMs, 2009). At various places, the phrase “advanced logistics” is juxtaposed instead. It denotes such technologies and business processes which allow firms to reduce costs by substituting transportation and just-in-time deliveries for large inventories, multiple warehouses, and customer service outlets (SCMs, 2009). It is the onus on the firm to reorganize it in accordance with the transportation infrastructure changes to take complete advantage of any improvements in its logistics facilities. (Gareth, 2003)
Using Regional Distribution Centers
Africa has long been a victim of HIV and AIDS. There are many organizations working there to provide quality medicines to the victims of HIV and SIMC is one such organization. Any such pharmaceutical-based organization in Africa, today would opt for a state of the art warehousing facilities, especially those operating in cities like Ghana, Kenya, and South Africa. As the requirements are urgent and at times in bulk so regional distribution centers operate for such organizations. The RDCs are another name for the state of the art warehousing facilities and these facilities can only be found in some areas of the world due to their different nature and special requirement. They store and distribute the most frequently used medicines. (SCMS, 2009)
RDCs are cost and time-efficient compared to other modes of distribution that most companies adopt there. They ensure shorter delivery times as opposed to ordering directly from a manufacturer. This cuts down the turnaround time to a measly two to six weeks from three to four months. There are various other facilities available at these warehouses which give them an edge over the routine modes that may have been adopted.
Expiry of products is taken care of as stocks are constantly rotated and shipments are made solely on the shelf life of products. The security is intense at the RDCs. The chain of custody is closely tracked to trace any theft and counterfeit product issues. By co-joining procurement alongside appropriate shipments, such warehouses also lower shipping costs. For instance, shipping by land instead of air, from the RDC to the original destination will inevitably lower costs. Their potential rescue in emergencies is another big advantage where these warehouses are concerned in particular. Warehouses ensure storage of “buffer stock” which can be a major help in times of stock out.
Most countries have limited warehousing capacity only. They are henceforth, unable to accommodate and attend to large shipments that they may receive from their international manufacturers. RDCs and warehouses such as this one relieve these countries of the burden to store all stock in just one place. They give them the advantage of providing warehouses where stocks can be drawn in small quantities as and when needed.
Conclusion
At the same time, such state of art warehousing facilities will also help raise standards elsewhere in Africa as well. Air conditioner and sprinkler systems may soon be seen cropping up in other warehousing companies in effect. Ergo, the stipulated impact is positive with long-term benefits in due course of time. However, only time will tell what other technological revolutions will change the warehousing capabilities and to what effect.
References
Jones, Gareth.R. (2003). Contemporary Management. North America: Mc Graw Hill
SCMs. (2009) Frequently Asked Questions, Regional Distribution Centers. Web.