“The Global Logistics Model for the Choice of Distribution Centers and the Combination of Transportation Tools”
Introduction
Logistics is the process of strategically managing the procurement, movement and storage of materials, parts, and finished inventory (and the related information flows) through an organisation and its marketing channels in such a way that current and future profitability are maximized through the cost-effective fulfillment of orders.
The term logistics has evolved from the military’s need of spare-parts supply, but is now widely accepted to include activities like purchasing, transport, warehousing, organizing and planning of these activities. Logistics managers need general knowledge of each of these functions, and specific knowledge of the industry, commodity, or business protocols governing the product types being managed.
In business, logistics may have either internal focus, or external focus covering the flow from originating supplier to end-user, see supply chain management (http://en.wikipedia.org).
Global Logistics
Logistic systems are providing solutions into today’s fierce global market competition; the introduction of products with short life cycles and the heightened expectation of customers that forced manufacturing enterprises to invest in and focus their attention on the system. This, together with changes in communications and transportation technologies, for example, mobile communication and overnight delivery, has motivated continuous evolution of the management of logistics systems.
In these systems, items are produced at one or more factories, shipped to warehouses for intermediate storage and then shipped to retailers or customers. Accordingly, to reduce cost and improve service levels, logistics strategies must take into account the interactions of these various levels in this logistics network. This network consists of suppliers, manufacturing centers, warehouses, distribution centers and retailer outlets, as well as raw materials, work-in-process inventory and finished products that flow between the facilities.
According to the Council of Logistics Management, it is the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements.
When we use the term “Global” with logistics, we talk about imports from
Asia to the U.S.; we talk about exports to Europe; we talk about movements
within North America – and we talk about more; products, components and
finished goods, which never touch the U.S. They move from a vendor in .
Credit:ivythesis.typepad.com
0 comments:
Post a Comment