Section 7: Logistics and supply Chain Flashcards
Logistics
The process of storage and transportation through a number of elements for products to reach the place where they are needed
Supply chain operations
The way that a business gets resources
Distribution channels
How a business gets its finished product (or service) to the market
Warehousing
A warehouse is a commercial building where goods are temporarily stored or rerouted to other businesses.
Multimodal transport
One contract with a single carrier or transport provider
Intermodal transport
Several contracts with several carries or transport providers
Factors to consider when choosing mode of transport
1) the size and weight of the load
2) the nature of the goods
3) the cost of transport
Modes of transport
1) air
2) rail
3) road
4) marine/sea
5) pipeline
6) digital delivery
Reverse flow of goods
Deals with moving products from consumer back to the provider
Forward flow of goods
Deals with flow of goods from producer to the consumer
Storage of goods
Warehouses are building used for storing goods used by producers, exporters, wholesalers, custom officials, distributors etc.
Insurance
Goods could get stolen, destroying by fire etc. and so it is important that the goods are covered so that the business can be compensated in case any of these things take place
Flow of information for logistical management
There need to be constant communication among the different parties involved in the supply chain.
Chain of distribution
Producer—>Wholesaler—>Retailer—>Consumer
Producers
Their job is to grow or mine raw materials to supply to manufacture, who adapt the raw materials into an end product
