DANCEST 805 Lecture 16:
Document Summary
Depends on it to move goods and materials among the supply chain partners. Range of activities: transportation, warehousing, material handling, packaging, inventory management, and logistics information systems: why logistics is critical. In the 1990s: companies realized the huge impact on cost, flexibility, and delivery performance of logistics. Today, advances in information systems, the globalization of markets and the push toward sustainability continue to create challenges and opportunities that did not exist a few years ago. Logistics costs in the us: 5-35% of total sales costs, and will grow as businesses and consumers move toward smaller, more frequent shipments of goods and materials and as more companies depend on foreign sources. Logistics expenses are second only to costs of material. Can have profound impact on ex: delivery speed and reliability. Often interface directly with the customer and may have a huge impact on overall consumer satisfaction: logistics decision areas.
