U3 Logistics Flashcards
1
Q
Logistics
A
- the planning for implementing, and controlling of the flow and storage of raw materials, inventory and finished goods, and related information, from the point of consumption
- purpose: for the right products to reach the right place in the right quantity at the right time to satisfy customer demand
2
Q
components to logistics
A
- sourcing
- warehousing and storage
- physical distribution
- information management
3
Q
sourcing
A
company must decide whether to source certain products/services from outside the company or to provide them itself
4
Q
outsource
A
- more efficient somewhere else = lower costs
- cheaper to produce: labour is cheap
- certain supplies are not available locally
- necessary technologies are not in home country
5
Q
warehousing and storage
A
- Goods are stored at the company’s manufacturing location and move through different stages of transit to reach the end consumer.
- Minimizing storage time is beneficial for cost and reducing product waste/obsoleteness.
6
Q
types of warehouses
A
- private warehouse
- public warehouse
- contract warehouse
7
Q
private warehouse
A
operated as a division of a company whose business is other than warehousing
8
Q
public warehouse
A
offer their services to a more broad clientele
9
Q
contract warehouse
A
offer services to a more restricted clientele and which have more formalized long-term contracts with their clients
10
Q
physical distribution
A
- moving and transferring of ownership of goods/services from the producer to consumer
- different modes of transportations can be used for this process
11
Q
information management
A
- more companies are using computers to communicate with each other to speed up the transmission of business data, documents, and the transfer of funds
- EDI
12
Q
EDI
A
electronic data interchange
13
Q
information management used for?
A
- ordering
- inventory control
- sending bill, invoices, cheques
- paying debts
- communcation with trade partners
