Innovative life , innovative business and logistics

Innovative life is such as food shopping over the internet, getting to know your partner , wife, husband on a dating or similar site, to communicate with people through social networking sites .

Innovative business is a virtual company , outsourcing and hiring abroad. More and more common are companies really exist on the internet. They employ more employees who work from their homes … Outstanding customer service even large companies perform in India …

Internet moves everything we do e – shopping in e – shop , we have e – friends on the site such as facebook , what we do advertises tweeted … customers gain via the internet. Until recently, People bought clothes, books , equipment in via Internet, Nowadays They buy bread, milk , meats .

There are a lot of Internet transfer courses , training and education .

What else will move to the internet? Behind all internet money transfer and investment.

Because our competition is just one click from us, we have to try harder . Sometimes it becomes less relevant facilities and infrastructure , which has a company in comparison to their prices. When we have a choice to buy a couple of reams of A4 paper, Do we buy it online from those who provide it to us cheaper , or from who has better infrastructure, which did not even see it?. It is a challenge for companies with developed infrastructure but selling more at higher prices.

For trade in goods , which can not be delivered electronically , is the whole logistics , mail, courier companies . E-commerce is a very large driving force to them. Special buffer warehouses

are very innovative , which can reduce the cost of delivery. That’s it . Delivery costs . They can be a drag for orders of small value . Hardly worth it to order goods and pay for the delivery of its equivalent .

Perhaps the solution is special warehouse buffer (here called buffer) – the type of storage buffer . We order 5 cheap goods at various online stores and they are sent to this buffer . What gives you the goods for a single price increase in the value of 20% , instead of 100%.

This buffer is to collect the packages from the shops, with which it cooperates and doing a cumulative shipment to the end customer. What is important is that the buffer was a large institution and collaborated with a variety of shops . Alternatively buffers co-works together on reasonable terms with each other. Buffering time is also very important, It is specified when ordering or the default: example from 1.03-7.03 . Delivery from store to buffer is cheap because it is sent in a single consignment many orders such as 100 with orders from many customers. So basket consignment is divided in 100 All our orders , which reach the buffer in a given period are sent to us collectively . Cost is is therefore :

Cost = ( m * ( the cost of shipping / n) + shipping cost + m * cost of storing and sorting ) / m
= Cost of shipping / n + cost of shipping / m + the cost of storing and sorting = cost + shipping cost aggregation / m

where:

m – number of our shipments in the period
n – the number of different items from the shop to the buffer

When the inequality

the cost of shipping > ( the cost of shipping / m) + cost aggregation

The option of using buffering warehouses is very profitable. Inequality is satisfied for m > 1 and the cost of buffering (sum of the costs of shipping to the buffer in a stream of shipments from different customers and the cost of storing and sorting ) < shipping costs. Terms of profitability :

large n (in tens , hundreds , thousands …
m > 1 and all the better , the higher m (m = 3,4,5 … )
small cost of aggregation (< shipping costs )

When the costs of buffering = shipping costs already profitable for m > 2