Logistics Sub-Sector Land Transportation

1.1.2. Logistics
 
Logistics
is defined as the process of planning and executing the '
efficient transportation and storage 
of goods from the point of origin to the point of consumption'.
The objective of logistics is to meet customer requirements in a timely, cost-effective manner. 
Components of a Supply Chain 
•
Lean suppliers, who can respond to changes in demand, maintain lower prices, improve 
quality and deliver on time. 
•
Lean procurement of materials/components through a web-based automated process 
•
Lean manufacturing generates what the customer wants in the right quantity, at the right time 
and with minimum resources. 
•
Lean warehousing eliminates wastes in product storage processes. 
•
Lean transportation creates a smooth flow of goods through quality transportation by the 
right mode and cost. 
"
Lean
" above stands for efficient & cost-effective 
Agility
of a supply chain means having a capacity to cope with a volatile demand (fluctuating demand) 
–
"the reaction time". If a supply chain is not agile, there will be a stock build-up at any point 
vendor/factory or producer/distribution warehouse etc 
A long supply chain
makes it complicated, costly and less agile while a shorter supply chain makes it 
more lean, efficient & agile
Visibility
in a supply chain is critical for information to quickly get transferred from one end of the 
chain to another. You can imagine a supply chain like a transparent pipe for the factory/suppliers to 
quickly get the information on changes in customer demand and react accordingly to avoid storage of 
excess inventory and meet the demand effectively & quickly.
 
Notes 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 
__________________________________________________________________________________ 

---