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It represents a way in which the “80/20” relationship can be used effectively as an integral part of a company’s strategy, as suggested in the sidebar, “How the 80/20 Relationship Applies to Logistics Strategy”. Logistics is the process of planning and executing the efficient transportation and storage of goods from the point of origin to the point of consumption. 集運 of logistics is to meet customer requirements in a timely, cost-effective manner. Logistics automation is the application of computer software or automated machinery to improve the efficiency of logistics operations. Typically, this refers to operations within a warehouse or distribution center with broader tasks undertaken by supply chain engineering systems and enterprise resource planning systems.

Inevitable energy allocation and conservation programs will involve significantly higher costs of one sort or another. Energy-intensive activities of transportation and materials handling will represent increasingly important methods of gaining competitive advantage in costs and of improving the quality of earnings. The most effective means for obtaining such results will not be through tactical decisions such as a shift from one method of transportation to another.

Main modules of a Logistics Management System

Rapid corporate growth conceals many blemishes of poor decision making and operating inefficiencies. And while individual organizations will continue to wax and wane in the future, in general there will be fewer growth opportunities on which to rely in a stable population increasingly concerned about its consumption rates. This will lead to a shift from emphasis on growth per se to what might be called the quality of earnings, obtained through the prudent control of costs required to serve relatively slow-growing markets and sales bases. Logistical considerations will weigh heavily in programs designed to improve the quality of earnings. Distributors instead were relying on Honeywell to maintain their inventory.

Logistics versus reverse logistics

Demand forecasting supports expansion by realistically calculating inventory needs and ordering, transporting and stocking accordingly. Further, logistics management best practices help companies scale to fulfill more customer orders on time. Its survey revealed that end-users perceived no significant differences in the levels of service delivered by the two systems. Puzzled by these results, the study team decided to investigate comparative dealer practices as well. This investigation revealed that its competitors’ dealers had come to rely on the company’s excellent system so heavily that they had reduced their inventories of spare parts below the levels required to maintain a high level of service to customers. The concerned manufacturer’s dealers, on the other hand, had experienced such poor support from their supplier that they maintained a much larger stock of parts on their premises, thus taking up the slack in the system.

Those involving large weight reductions will logically be located near sources of raw materials. Those requiring large sources of inexpensive power may obtain competitive advantage by locating producing facilities near such power sources. To employ logistics as an effective competitive lever and as a significant component of strategy, management must take two actions. First, it must adapt logistics programs to support ongoing corporate strategies in the short term.

Many of these efforts have resulted from the realization that once a delivery vehicle stops, the costs of delivery are relatively insensitive to the size of the delivery. The increased size and complexity of business operations combined with the application of problem-solving techniques and computer technology have made it possible for many companies to consider less common logistical responses to perceived competitive cost or service disadvantages. Among these are strategies that involve postponement and speculation, standardization, consolidation, and differentiation. Suppliers, manufacturers, distributors and retailers have had to improve their logistics processes to meet the demand for quicker, more convenient delivery of a wider variety of goods.

As is the case for any system, as it grows so does its impact on societies and day-to-day life. The increased growth of usage of the transportation systems across all modes can change to be better suited for each society and that time period in which it is needed. This chapter explains the different types of transportation systems along with cost and effectiveness. As discussed here, the logistics of a transportation system must be considered thoroughly in order to fully comprehend its effectiveness and quality to meet the needs of a society. Logistics plays a vital role in determining the competitive advantage of the supply chain in terms of cost, customer satisfaction and market share.