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The concept of 7 r’s of logistics is one of the most important and famous concepts used in logistics management, which is very briefly laying the foundations by which to achieve the smooth operation of all operations, from shipping logistics to purchasing goods for customers, and in general the logistics management requires the best planning in order to be able to Facing the complexities of shipping effectively, as well as trying to reduce costs as much as possible, below we will show you everything you need to know about 7 R’s of Logistics.

What are 7 R’s of logistics?

Now you may be wondering what is meant by  7 R’s of logistics ? In fact and as we indicated in the introduction, it is one of the most important concepts in logistics management, which means getting the right product, in the right quantity, in the right condition, in the right place, at the right time, for the right customer, at the right price.

What does 7 R’s 7 r’s of logistics do?

7 R’s of logistics significance lies in the fact that it explains the function of logistics services, and the manner in which items can be moved simultaneously that meets specific criteria, such as time, quantity, price, and others.

This in the end will help in controlling the flow of products, as well as effective planning and efficient management in storing goods and information, which leads to meeting customer needs, reducing costs and increasing profits as well.

7 R’s for better logistics management

After we got to know 7 R’s concept of Logistics, let’s explain it in some detail and explain how it can improve the logistics management process:

1. Right product

Any company that provides a service must clearly specify the type of products that it will deal with and which it is ready to transfer, and knowing the product you want to deal in will help you save a lot of time and resources, and even manage it with proper guidance.

2. Right customer

One of the most important steps is to determine the segment of customers you deal with, and thus direct the appropriate service to the right customer, and this will require you to first determine the target market to provide attractive service to customers, which must actually meet their needs.

You can rely on modern marketing methods as well as digital marketing, which will help you expand the segment of your customers and get the largest possible number of suitable customers. Digital marketing methods have proven their effectiveness compared to traditional marketing methods. Right quantity

3. Right condition

In order to be able to maintain the condition of your products or your items well, you need effective storage, as each product is stored with reference to its specifications and placed on the appropriate facilities to maintain its condition and quality, and thus deliver them in a right condition.

4. Right place

Service providers will need to have drivers who are fully familiar with delivery options, along with the importance of providing tracking systems, which must be provided to the service owner and the customer himself, and thus provide the ability to track the location and thus ensure that all products are delivered in their correct place.

5. Right time

When talking about logistical services, we find that time is one of the most important elements, especially since all customers pay great attention to the delivery time, and the presence of any delay or defect in it may cost you the loss of customers.

These calls for service providers to know what are the appropriate times to provide products in an efficient and timely manner as well. Delivery control systems can be used to verify their arrival at the agreed time.

6. Right cost

The process of pricing services is a very important thing, as each service must have an appropriate price that covers costs while achieving a profit margin, even if it is simple, and good storage systems and continuous updating of prices will help you gradually increase your profit margins.

7. Right quantity

Determining and knowing the correct quantity is one of the most important things in logistics services, as most service providers are a third party.

Consequently, all companies that deal with them must verify that the appropriate quantities of products to be delivered are sent.

With the tremendous technological development, there are modern systems that enable you to manage all quantities of goods suitable for shipping and delivery.

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The difference between the Physical Inventory and Cycle Count is one of the most important topics that many are looking for, especially the category of people working in the field of accounting, as it is the basic process of knowing the quantity of inventory of goods entering or leaving and recording them in records to know the details of all the sums of money spent and what was deposited in the accounts of the institution In this article, we will talk about Cycle Count and Physical Inventory and the difference between them.

What is an inventory?

The concept of inventory is not only related to the idea of ​​inventory. In fact, it is a list prepared in a certain period that includes all the assets and liabilities of the company “debts”.

The commercial law imposes an annual inventory list on all industrial and commercial companies, and as part of the inventory all items are calculated on the specified closing date “the end of the accounting period or year”, and in many cases inventory movements and any entry or disbursement from warehouses are prohibited during this Period.

What is cycle counting?

The cycle counting of the warehouse is one of the methods of checking inventory, which is used for the purpose of controlling inventory, and in which a limited group of inventory is measured at a specific location on a specific day, and this method is one of the most common solutions in controlling inventory.

This method allows companies to rely on different items within the warehouse without collecting the entire inventory, because another number of items are counted for the entire warehouse, and there are 3 types of cycle counting as follows:

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1. Control group

This type is used to calculate the items that provide the best results, by focusing on a small number of products.

2. Random sample

In it, the selected products are counted randomly, and in the event that the warehouse has a large number of products, a random sample is taken and analyzed.

3. ABC analysis

It is one of the alternative methods for the random sampling method, in which samples are randomly numbered, and it is based on the Pareto principle where 80% of the effect results from 20% of the complete causes.

What is a physical inventory count?

The physical inventory count allows monitoring the assets in the stores on an ongoing basis, and the institution can carry out the periodic inventory at the end of the fiscal year, then compare it with the actual stock in the stores, and in order to avoid errors, speed in work must be avoided and accuracy must be investigated.

In fact, the physical inventory process takes a lot of time, but with the use of inventory management techniques and modern automation systems, calculation methods have become easier.

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The difference between cycle counting and the physical inventory counting

The cycle counting is more effective if you want the best solution in terms of price; the cycle counting does not take much time and thus saves a lot of money when using it.

As for the physical inventory, it is the best option for companies that have a discounted product, as it will help them in ensuring a more accurate calculation of the product in addition to maintaining focus while maintaining inventory, and that process will take longer.

The benefits of cycle counting over physical inventory 

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The cycle counting is one of the methods that measures a fixed and fixed number of items, and is sometimes an alternative to taking a complete physical inventory once a year.

Generally speaking, the main idea of ​​the course path is to find the documents with error and then find the cause of the error, which helps reduce operating expenses. The benefits of cycle counting over physical inventory are as follows:

1. Reducing costs

One of the most important benefits of this type of inventory is the low prices, as most businesses neglect to carry out large-scale inventory checks.

However, when taking care of this matter and conducting that inventory, a lot of operational expenses can be saved, as well as costs resulting from downtime.

2. Get improved accuracy

As through this method of inventory, warehouse workers can identify incorrect data, and then correct them, which will result in increased consumer satisfaction.

3. Reducing losses

The periodic inventory keeps track of all items in real time, which prevents inventory from slipping or losing as a result of one of the theft operations or as a result of its expiration or exposure to damage.

4. Better work monitoring

This type of inventory will help you better monitor your business, by knowing how the product continues to flow through your warehouse, where you can know when the products are working well and thus be able to make better choices.

5. Increase operational efficiency

This inventory significantly increases your operational efficiency, as it reduces variations in your inventory, and this means less time to handle items, as well as less time spent searching for the wrong products.

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Digital payments have become a big part in most of our dealings, and payment cards have become an essential element in the lives of most of us, whether credit cards, direct debit or prepaid cards because they are simply convenient, safe and acceptable everywhere and at your time, in addition to that they allow customers to get many rewards, Such as discounts in restaurants and malls, earning additional miles through many airlines, or even cash refunds, and the mobile phone has paved the way for a revolution in the world of digital payments, adopted by policy makers, regulators, and non-traditional financial services providers; To lead the way in financial innovation and inclusion, in this article we’ll cover together everything you need to know about digital payments.

Digital Payments

It is one of the modern methods that are used in the process of supplying cash payments through the Internet to be a tool for transferring funds from the accounts of payers or buyers to the accounts of receivers or sellers, or by supplying these amounts to bank accounts of those who deserve payments.

This concept is not limited to buying and selling operations only, but there is a group of financial operations that can be paid or collected electronically in addition to buying and selling operations.

Among the most prominent of these operations are refunds, tax payments, premiums of insurance companies, dividends to shareholders, financial transfers for credit operations, loan payments, discount transfers, and other financial transactions.

How did digital payments appear?

The need for funds to be paid or captured electronically emerged through the developments in global markets, whether through the development of commercial operations and the expansion of their scope at the local or international level, or through the emergence of financial markets in which the physical payment process was an obstacle preventing the completion of some Operations in the financial markets.

With the passage of time, the electronic payment environment began to become more common in many commercial operations, and on the other hand, some of the old methods that were used in the past in the electronic payment process began to shrink, such as deposits and direct cash payments, especially in large financial and purchasing operations.

In addition to the periodic payments that have become paid electronically automatically, and the existence of digital payments over time contributed to the emergence of what is known as the electronic clearing house.

What are the benefits of digital payments?

The emergence of electronic payment systems was due to the urgent need imposed by the financial and commercial markets on cash dealers, as the benefits of digital payments contributed to creating a different environment for financial dealings with specific characteristics, and the following are the most important benefits of digital payment sand the effects they have on the financial and commercial markets:

1. Enhancing economic efficiency

The existence of digital payments systems contributed to the smooth flow of cash, which is certainly in the interest of the smooth running of operations and economic activities, far from what was contained in the old payment systems.

As the complex procedures that limit the process of financial and commercial exchange between the relevant parties, and this in turn helped to revive some sectors and commercial projects that used to be payment or collecting money operations weakening their sales or commercial operations.

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2. Provide financial protection

The presence of digital payments increased financial security for both the payer and the clutch is it through the flexibility of the electronic payment process, and the absence of the need to transfer a large amount of cash the traditional way.

In addition to the additional safety factor that digital paymentshave through digitization systems that ensure the existence of serial numbers for electronic payments, as these numbers are kept in electronic form that are difficult to lose or lose, unlike paper documentation processes for tangible cash payments that may be exposed to these risks.

This is why digital payments are widely used for the collection of tax revenues, salary deductions, and other government payments of all kinds.

3. Support emergency relief operations

Digital payments provided a safe and fast cover for support and assistance in cases of humanitarian, health or natural disasters at the level of a specific country or at the international level.

Where funds are transferred electronically and at maximum speed to initiate the provision of urgent financial assistance or the provision of health or medical supplies that can reduce the risks of natural or health disasters.

4. Reducing costs

The presence of digital payments has contributed to reducing expenses for companies or organizations in terms of receiving or paying financial dues, as funds can be transferred and transferred very smoothly and in record time without the need for personnel specialized in collecting, transporting and delivering money.

The financial risks that this entail make collecting or transferring money in some cases extremely costly compared to digital payments.

Reducing expenses related to paying or collecting money is not limited to transportation and collection costs, as there are some paper or print material supplies and some other administrative expenses related to payment and material cash collection.

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5. Saving time and effort

The entry into force of digital payments systems in many companies and organizations has saved a lot of time and effort spent in getting and collecting money.

This positively affects the economic activities so that you can devote themselves to some administrative processes and internal organizational matters in exchange for the time and effort that is spent on collecting and paying money in the usual way.

This is also reflected in the procurement cycle and the sales cycle in the organizations, so that the time spent in collecting and paying money is reduced, which increases the sales operations thanks to the use of time.

What are the methods of digital payments?

There are many digital payment methods, and the following are the most prominent methods used in digital payment operations:

1. Payment through transfer companies:

It is a fast electronic payment service that allows users to receive payments from anywhere in the world through money transfer services.

Transfer companies depend on international companies that are dealt with within one day for funds collected from local agents.

The advantage of the payment method through transfer companies is that it allows the company to freely choose the currency of the person who pays in cash without being restricted to a specific currency type in the transaction.

2. Payment through bank transfer:

Payment method by bank transfer is one of the latest electronic payment services provided by banks.

And it depends on transferring the amount that the customer transfers to the beneficiary by transferring this amount from the customer’s account to the beneficiary’s account in the same bank or one of its branches, or by transferring funds from one bank to another locally or transferring from one bank to another internationally.

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3. Payment through websites:

 Payment via websites is one of the best and most important electronic payment methods, as funds are transferred from one party to another through websites. This method is mainly used in e-shopping services, and it is a safe way to buy online.

The site is a way to transfer and receive money, as it acts as a mediator between buyers and sellers, and this method is currently available in most Arab countries.

4. Payment through prepaid cards

A prepaid card is a cash payment and withdrawal tool issued by large financial institutions (such as banks). It allows its users to purchase on credit in a manner controlled by its source and to obtain borrowed money from its source.

The advantage of the prepaid card is to provide users with special services, because the idea of ​​the card depends on the user’s use of a prepaid credit card to deposit a certain amount of money in his account.

When using the card for shopping, the amount is deducted from the bank’s credit balance, and it is valid on websites and in the market.

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In the midst of the technological revolution that we are living in today, there is a possibility to significantly reduce inefficiencies and inefficiencies in the supply chain, through digital transformation, as many companies and institutions have committed over the past few years to implementing digital transformation strategies, and these strategies aim to bring about qualitative changes in Lots of corporate operations by applying business methods based on securing more analytical and collaborative capabilities; With the aim of developing an in-depth understanding of customer requirements and optimal service, achieving sustainable competitive advantages, enhancing levels of profitability, as well as reducing total costs, and in this article we will present to you the 7 most important techniques for digital transformation of the supply chain.

What is digital transformation?

Perhaps digital transformation is the most common sentence I heard during your meetings. The concept of digital transformation may be confused by some people. Some people think that as soon as one or two new programs are used, their company or institution is transformed digitally.

Digital transformation is the shift in the way of working in companies so that the chore decreases and the time of thinking increases, as it is the acceleration of the daily work method so that the great technology development that is taking place is exploited to serve your customers faster and better.

Digital transformation is the increase in efficiency in the workflow so that errors are reduced and productivity increased.

Digital transformation is increasing the number of your team members without the need to employ. Simply put, digital transformation is making use of technology for people to work.

Top Digital Transformation Technologies for the Supply Chain

Business organizations, regardless of their size, need to keep pace with the development in technology, because technology has changed the way consumers think and behave.

Digital transformation has a huge impact and huge importance in the supply chain, and here are the top 7 technologies for the digital transformation of the supply chain:

1. Using Smartphones to ensure operational transparency

Smartphones have now evolved tremendously and are still under development as well. Smartphones can work like a personal computer, thanks to their ability to simulate computer processors.

Smartphones also offer their users many strategic advantages, as they are an effective way to communicate with other advanced technologies.

The smartphone became a powerful non-stop navigation system.

Smartphones have also become a tool for generating reports and an intermediary for logistics management programs as well, and they are available in everyone’s hands.

2. Synchronizing work processes with Cloud technology

It has become possible to integrate business data and associated activities and upload them to the cloud, which can integrate and help users eliminate traditional information retention methods, and also facilitate the way to contact external transport partners.

3. Connecting physical devices to the cloud with Internet of Things solutions

IoT solutions are of great importance in supply chains, especially as they make managing transportation or manufacturing activities easier and more efficiently.

It now has the ability to define the location, along with the ability to send the operational status to the manager in real time.

Thus improving corporate visibility, enhancing efficiency while minimizing wasted cost in corporate logistical activities.

4. Analyzing Big Data to restructure business operations

The Internet of Things has enabled data from all sources to be accessed for up to 500 TB, and advanced predictive analytics is a new trend in big data science.

This technology works on making expectations about customer demand, depending on the data recorded in the past, and this technology helps greatly in ensuring profitability and enhancing competitiveness in the market.

5. Applying Artificial Intelligence and Machine Learning to support decision-making processes

The use of artificial intelligence technologies will play a prominent role in saving a lot of time in corporate planning and reducing human errors.

Where the use of transport management strategies enhanced by artificial intelligence will help in enhancing the company’s productivity, in addition to its contribution in supporting all activities related to business and production in the logistical activities.

6. Automating business operations using robotics and autonomous vehicles

With the tremendous development that e-commerce platforms are witnessing, the logistics services industry is facing a shortage of qualified manpower for delivery operations, and thus a severe need for supply chain automation has emerged to ensure service quality as well as reduce the burden on the workforce.

7. Ensuring professionalism with Software as a Service solutions (Saas)

SaaS solutions help ensure a return on investment (ROI) and increase the flexibility of the supply chain and logistical activities of companies and these solutions can monitor logistical processes in real time, ensuring productivity and transparency.

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Pickup & Delivery Logistics The supply chain consists of several levels designed to produce and distribute goods, ranging from the use of raw materials to the production of finished products. Without successful logistics, workflow can be hampered by delayed shipments and incorrect storage units, when the movement of materials is properly mapped throughout the supply chain. , Companies can improve the efficiency of their warehouses, thus companies can benefit from investing their time and efforts in ensuring that their logistics management can appropriately coordinate all transportation needs, and in this article we will address together Top 5 Metrics & Benchmarks to measure in Pickup & Delivery Logistics.

Pickup & Delivery Logistics

Pickup & Delivery Logistics Without metrics that you use to analyze the appropriate data for your business, the process of managing the work will be very difficult, and for the Pickup & Delivery Logistics, you will need a number of metrics and standards in order to be able to manage the process and evaluate the success of your organization.

Top Metrics & Benchmarks to measure In Pickup & Delivery Logistics

There are a number of important metrics used in Pickup & Delivery Logistics, which any company can use to measure its performance, thus knowing how well it can achieve its goals. Here are the Top 5 Metrics & Benchmarks to Measure in Pickup & Delivery Logistics :

1. On-Time Pickup Percentage

One of the most important metrics that is used, and in general, we calculate the percentages of receipts at a time by dividing the total number of receipts on time by the total number of shipments in a given period.

This criterion helps you to know the performance of the shipping logistics company and the extent of its impact on your operations and customer service, whether it affects positively or negatively.

An accurate measurement of unsuccessful receipt times will help you identify the most important problems that you may face early, thus preventing any potential obstacles from affecting the product’s delivery to the appropriate destination.

This standard also provides you with other benefits, for organizations, knowing the percentage of on-time receipt will help them give them the reason behind the problems that affect product sales.

Shippers will be able to see the timing of the carriers, and how this affects their delivery schedules.

2. Perfect Shipment Measurement

As for this scale, it is called the ideal metric for your request, because it measures the percentage of your requests that were completed without any errors.

The goal of this metric is to enhance your delivery process by gradually finding and eliminating defects, which will help managers know all the causes of failure.

3. On-Time Delivery Adherence

It’s called (MABD), and that’s because it commits to delivery on time, and this metric shows you the average on-time delivery versus the date customers order.

This metric is especially important to merchants, especially retailers, who pay fines for late orders.

This scale can also be used to determine the percentage of items that are delivered on time, as well as knowing their value and when they are available, early or late.

All of this will help you effectively increase the efficiency of your supply chain, by committing to on-time deliveries, and by continuously monitoring and monitoring deliveries.

4. Freight Bill Accuracy

You can measure the accuracy of a freight bill by dividing the total number of error-free shipping invoices by the total number of freight invoices in a period. Learn about : freight broker

And you must note that this scale is measured in general, and every shipping company has a scale for it, and this scale will help you in identifying any problems that may pass.

Its importance is highlighted in that it helps managers identify problems at an early stage, and thus take appropriate measures to solve them before the situation worsens.

All of this will avoid unnecessary fees and costs, and thus reduce transportation costs, which will positively affect your bottom line.

5. Transit Time to Distance

The last metric in our list, which expresses the time it takes for the shipment to leave from your facility and reach the customer, and that period may be in days or hours.

In general, transit times vary according to the shipping method used, the transportation systems themselves, and road conditions as well.

But this metric will help you monitor transit time, thereby improving that process and knowing the factors that may affect the transportation process while minimizing them as much as possible.

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Inventory control is one of the most important things in the fields of industry and production, and it simply and briefly represents all the methods or methods that ensure the existence of detailed lists of the (primary) raw materials necessary for manufacturing as well as the manufactured materials that aim to meet the needs of customers throughout the year, avoiding the freezing of cash flow and reducing Waste of resources.

Inventory control has a role in determining the quantity of inventory of a particular item, as well as when it must be requested from the Purchasing Department and determining the safety limit that does not fall below the minimum stock of this item, and in this matter we will get to know together what is meant by inventory control in some detail.

What is meant by inventory control?

At first glance, inventory control and inventory management look the same, and the reason for this confusion is that they both cover similar rules revolving around the famous question, “What is the ideal quantity of inventory a company should demand?”

But inventory control is a process that regulates and maximizes your company’s warehouse inventory, with the goal of increasing profits with minimal investment in inventory, without affecting customer satisfaction levels. The inventory control process includes the following:

• Barcode scanner integration
• Rearranging reports and adjustments
• Product details, date and location
• Comprehensive inventory lists
• Synchronize inventory in real time with sales orders and purchase orders

Objectives of inventory control

The most important objectives of inventory control can be summarized in the following points:

• Obtaining the lowest prices from raw materials that have a direct impact on increasing the profit margin of the manufacturer.
• There are many raw materials that are available during certain times of the year, that is, seasonally, and therefore quantities of them must be reserved to ensure that the consumer is not disconnected from the finished product.
• Not to freeze cash flow resulting from the increase in inventory, and improve productivity by reducing losses resulting from increased inventory, and managing cash imports and exports.

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How to practice inventory control 

Given the importance of inventory control and its role in increasing profitability, and ensuring that there is sufficient inventory on hand so that it does not run out,

There are a number of inventory control best practices that you should try and take advantage of, and here are the best practices for inventory control:

1. Use inventory optimization tools

Inventory optimization tools are of great importance, because they actually take into account the fluctuations of demand and the extent of supply variability. They also have a number of parameters that can help you determine how much inventory should be kept to meet the differences between demand and supply.

2. Use real-time analytics

Real-time analytics helps you identify inventory in real time, and it can help you track that stock in one form.

3. Avoid treating all stock holding units the same way

One of the most common mistakes in inventory control is treating all inventory holdings in the same way, which is wrong because every product differs from the other in terms of supply and demand fluctuation patterns, and in order to be able to increase your sales and profits, you need to focus on those who represent 80% of Your stock size.

4. Monitor your suppliers well

One of the best practices in inventory control is to follow your customers closely, so you can identify trusted people and untrustworthy people.

5. Try to take advantage of smart phones

One of the most prominent and best practices in inventory control is relying on devices and smartphones, thus providing the largest number of mobility solutions and thus providing greater accuracy and speed in work.

The Pareto principle

Did you know that 20% of the employees of some companies do 80% of the work? Did you know that 80 percent of some organizations’ profits come from only 20 percent of their clients?

This is due to the 80/20 rule or what is known as the Pareto principle, a principle that was developed by the Italian economist, Philfredo Pareto in 1896, and this principle states that 80 percent of the results come from only 20 percent of the causes of a specific event.

And the 80/20 rule helps companies stop trying to do everything at all times so that time, energy and money are directed to those things that yield the highest and best results with the greatest possible effort.

The more focused the inputs, the better the output, and for inventory control, you need to focus only on those 20% who statistically make up 80% of the volume and manage this inventory, which will enable you to maximize sales and profits.

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Inventory management software for better inventory control

Inventory management is one of the most important things that can affect the efficiency of any business. Inventory is one of the most important assets that the facility owns.

Therefore, attention must be paid to managing it well through the so-called inventory management system because it greatly helps in the inventory management process.

In addition to that it saves a lot of time and effort that traditional methods spend, inventory management software can help you effectively improve your inventory control, and Diggipacks can help you provide inventory management software to monitor your inventory.

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Safety stock is one of the important things that must be done in warehouses, which helps mitigate the risks resulting from running out of stock for a particular company, so until production does not stop, the Purchasing Department knows the amount of the factory’s daily needs of raw materials used in production, then measures the amount of time needed between The point of ordering the materials from the supplier and the point of arrival of these materials to the factory stores, and accordingly you determine the safety stock, and in this article we will show you everything you want to know about safety stock and how to calculate it.

What is meant by safety stock?

It is the stock that the company needs in order to mitigate the risks that may fall into it as a result of its depleted stock from warehouses, and in general, there are two types of inventory, namely:

• Core inventory, which is the stock of products that remain throughout the year.
• Seasonal inventory, which is the stock of products that remain for a specific period of time.

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How do I calculate safety stock?

There are two methods of calculating safety stocks:

The first method | Calculate security stocks using the basic formula

The basic formula for a safety stock is:

• Safety Inventory = {Maximum Daily Sales * Maximum Lead Time in Days} – {Average Daily Sales * Average Lead Time in Days}.

The second method | Calculate safety stocks using standard deviation

Although calculating safety stocks using standard deviation is the most complex method, in view of its complexity it is the most accurate and takes the following formula:

• Safety Stock = Level of Service Required * Standard Deviation of Lead Time * Average Request

*Note that:

• The required level of service is the likelihood that the company has sufficient available stock to satisfy the current customer, which you can obtain by balancing inventory costs against the cost of inventory.
• Standard deviation of lead time means the differences that may result in the agreed lead time and the delivery time itself.
• Average order, which means the average quantity of products that customers have purchased during a given period of time.

What is reorder point? 

Reorder point is one of the important metrics that help in determining delivery lead time, delivery options and it is closely related to security stock, as it indicates when the time is appropriate to place a new order for stock restocking.

In addition to determining the minimum order and displaying the quantities, this helps companies avoid the process of running out of stock, which saves them from many exorbitant costs, and thus the re-order point helps in:

• Provide temporary time for restocking goods.
• Reducing rush fees owed to suppliers.
• Reducing operational clutter.
• Use warehouse space more efficiently.

How do I calculate the reorder point formula?

The reorder point means the level of stock at which you will rearrange in order to be able to meet the demand and improve the control of the inventory, and you can calculate it by using this formula:

• Reorder Point = Timeout Order + Safety Stock

*Note that:

• Timeout Order = Lead Time * Average Daily Sales
• Lead time = the sum of the number of days from the date of the order until the date of receiving the goods in the warehouse

Inventory Management Software for Safety Stock

There is specialized software in stock management for safe inventory, which is one of the methods of automating the inventory management process, which helps reduce the potential for accumulation of raw materials and thus increase storage costs, and it also works to control orders, raw materials, etc. to meet the demand of your customers.

And sometimes it happens that your inventory runs out, which may be due to a defect in coordination between suppliers, manufacturers, customers, as well as sales representatives.

Inventory management software helps you track your inventory, check the availability of sufficient stock to meet customer demands, and it also works to know the amount of safety stock required.

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Dimensional weight is a nightmare for customers wishing to ship their parcels, because there is a prevailing impression that the dimensional weight negatively affects the weight of the shipments, as the weight of the shipment is doubled, and this impression is completely wrong, and in In this article, we will show you the difference between dimensional weight and the actual weight, then talk about dimensional weight, how to calculate it, and how to avoid additional charges for dimensional weight.

Dimensional weight 

Dimensional weight is that weight that is calculated according to the dimensions of your parcel, it shows the suitability of the dimensions of your shipping parcel, measured in cubic meters, with the weight in kilograms.

The difference between dimensional weight and the actual weight

Many of us do not distinguish between the dimensional weight and the actual weight of the shipment, and despite the fact that both words refer to weight and are used in determining the weight of shipments, but the difference between them lies in the fact that:

The actual weight is the weight of the weight of the shipments and is measured in the kilogram unit, while the dimensional weight is the suitability of the dimensions of the freight parcel (measured in cubic meters) with the weight in kilograms.

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Why Dimensional weight is important

The actual weight is calculated and compared with the dimensional weight of the shipment to make sure which is greater; accordingly, the greater weight is used to calculate the shipping price and the final cost of the shipping method.

The actual weight of your package may be small – it has a low density – but the nature and shape of the shipment makes it large, which means it takes up more space.

This forces shipping companies to take fewer shipments on board, for example; because it fills up quickly, which results in a higher shipping cost and price.

Dimensional weight calculator: How do you calculate dimensional weight?

The dimensional weight is calculated by multiplying (the length, height and width of the parcel) and dividing the result by the dimensional factor and this factor varies according to the unit of measurement.

Using kilograms to calculate shipping charges, the formula for calculating the dimension of weight is as follows:

• Volumetric Weight (kg) = (Length (cm) x Height (cm) x Width (cm)) / 5000

Steps for calculating the dimensional weight

1. Measure the length, height, and width of your parcel using the longest point on each side.

*Note that: These measurements should take into account any extras, as these extra volumes are included in the volumetric weight calculation, if you don’t take them into account you will be surprised at an extra shipping cost you weren’t expecting.

2. Round the result to the nearest whole number.
3. Multiply these parcel dimensions to get the cubic volume of your parcel.
4. Divide the cubed size of your parcel by the dimensional factor called (DIM), and this factor is determined by international shipping companies such as Fedex and UPS.

How do shipping companies collect package charges?

Shipping companies collect package charges based on the higher value of the weight, whether that weight is dimensional or actual, as:

• If the actual weight of the parcel is 2 kg, and the dimension of weight is 3 kg, the shipping company will charge the shipping cost based on the dimension of weight as being greater than the actual weight.
• If the actual weight of the parcel is 3 kg and the dimension is 2 kg, the shipping pricing will be based on the actual weight, because it is the largest.

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How do you avoid dimensional weight charges?

Many people are wondering how to avoid dimension of weight charges, and here are a number of ways that will help you avoid such charges as much as possible:

• It is important to keep the volumetric weight in mind when choosing the box in which your shipment will be shipped, as a large box means a high volumetric weight, which in turn leads to high shipping costs.
• Use a box as small as possible while maintaining product integrity; There is room inside the box for any necessary air packaging, which is the perfect solution to reduce shipping costs while not sacrificing product.
• Trying to ship large quantities of parcels, as the cumulative number of shipments has significant discounts from international shipping companies.

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E-commerce has become a feature of the era, and selling products online has become commonplace, the state of things at the present time leads to a dangerous growth in e-commerce, various reports mentioned how e-commerce transactions increased by more than 50% compared to previous years, for this reason if you want To start selling online, you should take advantage of the famous websites that will help you reach the largest possible number of people, and it is also important to have your own e-commerce website that you own to sell products online, and in this article we will show together the best sites that you can sell products online through it easily.

Access to the big online marketplace ecommerce

The online marketplace is like a number of websites dedicated to e-commerce, which specialize in providing various products from different vendors.

It is important to have your own e-commerce website that you own to sell products online, but even so, popular e-commerce sites will help you get the initial push you need to get people to your online store.

There is no doubt that electronic shopping has become one of the most powerful daily activities that all peoples of the world practice and implement, as many have recently turned to electronic stores as their primary destination to get all their needs and what they lack.

From the basic requirements of food, drink and clothing to the luxuries that add entertainment to our lives, electronic stores have become the best way to reach global markets.

Create an online store | Create Your Own Store

Creating an online store and entering the world of e-commerce is one of the best investment ideas that you can do at the moment, especially as the digital economy is experiencing a huge revolution.

Perhaps one of the main reasons that lead individuals to create an online store is the relatively low cost, along with the popularity and expansion of the e-commerce market.

You can create your online store by relying on one of the sites that provide you with electronic store design services, and the following are the things that you should keep in mind when creating your own online store:

1. Choose the type of products that you want to display in your online store

Based on your study of the market and the individual’s request, what kind of products they might want and what is the age group that you will target.

2. Determine the source of your products

After determining the type of products that you will work with in your online store, you now need to search for the source that will provide you with these products.

3. Choose the appropriate e-commerce platform and start building your online store

After you have determined the products that you will work with as well as the source from which you will get those products, you now need to start creating your own store, by relying on service providers and designing commercial websites.

4. Searching for the appropriate marketing channels

After you have already established your online store, you now need channels to market your online store and the products it contains, and as a start, you can rely heavily on social media, and inevitably you will receive a large number of potential buyers.

Best places to sell products online

There are many places where you can sell products online, but you need sites that can connect you to the largest possible number of potential buyers.

And in general there is a wide range of sites where you can sell products online, and each site has its own set of seller fees, commissions and requirements.

So it is important to weigh your options carefully, and the following are best with the reality that you can sell products online:

1. Shopify

Shopify is one of the best places where you can sell products online, and it also allows you to create your own online store, all for a small fee that is not exorbitant like similar sites.

And there are many tools and applications on Shopify that help you expand your sales and sell products online successfully through The Internet has access to a large number of buyers.

Working on the Shopify platform is easy, attractive and very fun, whether in selling products that you own or do not own, i.e. what is known as drop shipping method and want to market it to the world and receive profits through many available payment methods and then send the goods to the buyer.

2. Zid 

Zid is a Saudi online store building platform that provides all services that help retailers manage and operate these stores.

The Zid platform helps you create an integrated online store that fits with your brand identity without the need for any technical expertise, and it is one of the best sites that you can sell products online through, and it has a number of advantages, as:

• Providing various payment methods.
• Get a free SSL certificate that helps protect your site.
• Helping retailers to reach more than 25 companies and service providers such as shipping companies, electronic payment and other services at reduced prices.
• Assisting retailers in managing their e-stores and providing consultations and seminars on e-commerce.
• Live support through live chats.
• Send text messages to customers containing the number and order status.
• The ability to create an application for your commercial identity.

3. Salla app

The Salla app was one of the first platforms in Saudi Arabia to help retailers create their online stores within minutes without the need to have a high tech background.

It is also one of the most popular destinations suitable for selling your products online and reaching a large number of potential buyers, especially in the Middle East, and the following are the most prominent features of the Salla app:

• The ability to add an unlimited number of products.
• The ability to control the design of the online store.
• It offers a variety of free and paid options for plugins that you can add to your site.
• Offering various payment options such as PayPal, Apple pay, and other payment methods.
• Providing multiple options from shipping companies.
• Ease of use and does not require high technical experience.
• Technical support throughout the day.
• The ability to manage and receive orders through the branches.

Diggipacks e-commerce Solutions

Diggipacks is one of the best companies that provides all the technology needed to run your business, and one of the most prominent services it provides is e-commerce services.

Whatever your type of e-commerce, Diggipacks technology will support you, as it provides all shipping solutions for e-stores, and the most prominent things it can offer you regarding e-commerce services:

• Storage services for e-commerce companies, they provide customers with all solutions and automatic reports on a daily basis.
• The Diggipacks platform is fully available on the web and special applications for customers, you can see all updates on time and without any delay, such as inventory reports, delivery performance reports, as well as reports near the end of inventory.
• Availability of all necessary tools and technology and all shipping solutions for online stores
• To prepare your products and deliver them on time at all times.
• Having a highly experienced team to manage all tasks, we are able to process more than 150,000 orders per month, as a minimum.
• The availability of advanced technology, which has been designed with the highest standards, and there are special applications for each client as well as the customer control panel, which allows the ability to follow the latest updates and reports at any place or time.
• The presence of technical support around the clock for any inquiry or problem, whether by phone, technical support tickets or through direct contact with them, so that any inquiries can be dealt with on time.
• Providing plugins where customers can connect e-commerce sites such as Magento, Magento 2, OpenCart, Word Press, Shopify, in just 15 minutes, using the plugins provided by Diggipacks to its customers.

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e-commerce Warehouse layout The storage and shipping operations are one of the most important things in e-commerce, especially since the accuracy of orders and timely delivery options is important to maintain customer satisfaction, and efficiency in storage affects the space you will need for storage as well as insurance and maintenance operations, so taking care of your warehouse, whether your trade is electronic or physical It is very necessary, and in this article, we will show you How To Optimize your e-commerce Warehouse layout.

E-commerce Warehouse layout 

Warehouse layout is of great importance in your business, because creating the right layout inside and out will help you improve traffic flow in your warehouse, thus reducing your inventory losses and improving efficiency in your warehouse, so you need a fully optimized warehouse design.

Ways to help you optimize your e-commerce Warehouse layout

Optimize e-commerce Warehouse Layout and Storage

The improvement of e-commerce Warehouse Layout and Storage starts from determining the most appropriate storage locations for each product you have in your inventory, which will help warehouse workers to find orders quickly and thus speed and accuracy in choosing them, which positively affects the delivery process, so orders are delivered on the second day, perhaps in the same Today too, so you get the most out of your warehouse storage space.

Why you should choose a WMS?

WMS helps you save time and effort as well as money, it is possible to manually improve warehouses, but this matter requires a lot of time as well as a huge collection of data that may be unable to collect as required, and here appears the importance of WMS, which can explain to you everything you want Knowing about your warehouse as well as the expected stock growth, this will make you spend your time on other things of importance.

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Packing and Shipping Equipment

One of the most important things that can improve your warehouse design is to focus on the basic equipment you need. All e-stores share the same goal of warehouse which is to increase warehouse space with efficient order flow.

So you really need to have the packing and shipping equipment you need, which you will use to collect your customers’ orders and then package them and prepare them for shipment.

Optimize Pick Paths

WMS can help you determine the optimal picking paths in your warehouse, because it is all based on automation that saves time and effort and helps achieve accurate selection and picking as well.

Before the emergence of e-commerce, warehouses used to take out orders in bulk and in large quantities, but now there is an individual order, and thus Picking has become very important, there are many methods for selecting orders, where:

• Wave picking.
• Batch picking.
• Zone picking.

Using the right warehouse management software provided by Diggipacks

WMS will help you a lot in getting more of your work done accurately and efficiently, and it will save you a lot of time that you can direct to do more important work.

WMS is also important and an advantage in its ability to optimally select the individual, which is what anyone working in e-commerce might want, aIt also helps you with e-commerce Warehouse layout and Diggipacks provides you with the best warehouse management services that will provide you with all the basics you may want.

By using the WMS technology provided by Diggipacks, the products will be updated at the highest speed, as well as moving the stock from one place to another with ease and ease, as well as providing you with the latest news about the movement of your stock periodically and determining the spaces needed to store them without any human intervention.

Integrate your systems

Integration in business systems helps you share and transfer data easily, which positively affects the reduction of costs and errors, and thus significantly increases efficiency. The following are the most prominent systems that need to activate the integration:

• Shopping cart software
• Systems arrangement
• Accounting systems

Optimize Your Reverse Logistics Process

One of the things that will help you in improving your warehouse is improving your reverse logistics process, which will help in Return management efficiently and at a reasonable cost, as well as gain customer satisfaction by providing an easy and comfortable return experience.

Stay Technologically Savvy

You must be constantly up-to-date with the latest technologies and updates, technology is in constant progress, so new products and regularly updated business models are very important in your business, and you also need to develop your interaction with your customers, you need to be prepared to deal with changes Snap in demand and interface with new technologies as they arise.

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