Logistics Execution: Orders, Warehousing, Transport
Order management starts the clock
Order cycle time = order entry + processing + picking/packing + transit + delivery + customer receipt. Order management includes credit check, inventory allocation, order promising (ATP/CTP), and exception handling. Order status visibility is a service feature, not overhead.
Warehouse execution
Receiving → putaway → storage → replenishment → picking → packing → staging → shipping. Levers: velocity-based slotting (A items nearest shipping), pick method (discrete, batch, zone, wave), pick-to-light/RF, and task interleaving. Cross-docking eliminates putaway and storage and demands tight inbound/outbound synchronization. Traps: confusing cross-docking with transloading, and assuming automation is always justified - volume and SKU profile decide.
Transportation execution
Mode choice balances cost, transit time, reliability, capacity, and access. Truckload, LTL, or parcel is driven by shipment size and weight breaks. Dimensional weight means light, bulky freight is charged by cube. Incoterms 2020 define delivery, risk transfer, cost allocation, and clearance duties - but not title or payment. FAS, FOB, CFR, and CIF are sea-only; FCA is the recommended general-purpose term; under DDP the seller clears import and is importer of record.
Worked example
A 24,000-lb truckload costs $2,400, or $0.10/lb. An LTL shipment of 6,000 lb at $0.18/lb costs $1,080. Four such LTL shipments equal the truckload's weight at $4,320 - consolidating into full truckloads is the standard cost lever.
Reverse logistics - returns, repairs, recalls, pallet pools - needs separate design: flows are small, unpredictable, and labor-intensive.