Importance of Logistics and Supply chain strategy .pptx

Logistics class and supply chain

1. Importance of logistics and supply chain

2. Logistics centers around creating value: value for customers and suppliers of the company, and shareholder value of the company. The value in logistics is mainly expressed in terms of time and place.

3. Cost is important Over the years, we have conducted several studies to determine the cost of logistics for the economy in general and businesses in particular. There are widely differing estimates of cost levels.

4. Expectations of logistics customer service are increasing Internet, operating procedures and continuous time replenishment inventories have helped customers expect great speed in the processing of your requirements and delivery of their orders, and there is a high degree of product availability.

5. Supply lines and distribution are growing in more complex The trend is towards an integrated world economy. Companies are looking for or have developed comprehensive strategies, designing their products for a global market by producing where the raw material, parts and labor may be found at low cost ( eg , the Ford Focus car), or simply produce sold locally and internationally.

6. Logistics and supply chain are important in the strategy Companies spend a lot of time looking for ways to differentiate their products those of its competitors.

7. Logistics and supply chain add value important to the customer A product or service is of little value if it is not available to customers in the time and place in which they wish to consume. When a company incurs the cost of moving the product to the consumer or to have available inventory of timely manner, created a customer value did not have before.

8. Customers increasingly want a quick response and customized Retailers fast food, ATMs, sharing and overnight email Internet have made consumers hope that the products and services may be available in ever shorter times.

9. Service Industry The service sector in industrialized countries is large and growing. United States, more than 70% of all jobs are in what the federal government classified as the services sector.