Logistics - The work of logistics
5 important questions on Logistics - The work of logistics
Logistics belongs to the bigger context of supply chain management. How can logistics be explained?
For a supply chain to realize the maximum strategic benefit from logistics, five interrelated functions of logistics must be sucessfully implemented. Which five functions?
- Order processing;
- Inventory;
- Transportation:
- Warehousing, material handling and packing;
- Facility network.
(think by yourself: why are these functions related to each other?)
What are the three fundamental factors of transportation?
- Cost: the payment for shipment between A and B. Looking at the total system cost, the least expensive transport method does not Always turn out to result in the lowest total cost.
- Speed: the time required to complete a specific movement. A critical aspect of selecting the most desirable method of transportation is to balance speed and cost of service.
- Consistency: refers to variations in time required to perform a specific movement over a number of shipments. With less consistency, more inventory should be held in warehouses to cover service failure. Speed and consistency combine to create quality of transportation.
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Define Warehousing, Materials Handling and Packaging
Define Facility Network design
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