M1S2 Flashcards
this refers to the idea of the development of a logistics pipeline approach for products to flow through the supply chain to the end customer.
The concept of the supply chain
is an entire system of producing and delivering a product or service, from the very beginning stage of sourcing the raw materials to the final delivery of the product or service to end-users.
Supply Chain
Elements of Logistics and Distribution
Storage, warehousing, and materials handling
Transport
Inventory
Information and control
Packaging and unitization
location of warehouses
number and size of distribution depots
type of operation
Storage, warehousing, and materials handling
mode of transport
type of delivery operation
load planning
route schedule
Transport
what to stock
where to stock
how much to stock
Inventory
design of systems
control procedures
forecasting
Information and control
unit load
protective packaging
handling systems
Packaging and unitization
Importance of Logistics and Distribution
Importance in the economy
Importance of key components
Importance in industry
Logistics is an important activity making extensive use of the human and material resources that affect a national economy.
Importance in the economy
Transport was the most important element, followed by carrying cost, storage/warehousing, customer service/order entry and administration. The transport cost element of distribution was the major constituent part, often due to high fuel costs
Importance of key components
The ____________ element of distribution was the major constituent part, often due to high fuel costs
transport cost
When looking at industry and company level it is essential to be aware that the above costs are average figures taken across a number of companies.
Importance in industry
Channels can be ________ and ___________
short
long
________ may be operated by different players: manufacturers, retailers, specialist third- party distribution companies, or indeed by a mixture of these.
supply chains
Channels that are very direct
Short
Channels have many intermediate stocking points
long
The relative importance of logistics is measured in relationship to the overall value of the particular products which has implications for comparing relative importance between different companies
Importance in industry
Small companies tend to have proportionately ________________ logistics costs than large companies
higher
Logistics costs of small companies are ________ higher compared to about 5 percent for larger companies
10%
This simple physical flow consists of the different types of transport (primary, local delivery, etc) and stationary functions (production, finished goods inventory, etc).
The importance of this distribution or logistical cost to the final cost of the product has already been highlighted.
It can vary according to the sophistication of the distribution system used and the intrinsic value of the product itself
Fundamental Characteristics of a Physical Distribution Structure
