Logistics is a concept that is constantly evolving in today’s world. Its use began in the 1950s and 1960s in a military context, including the “moving, supplying, and maintaining military forces” and was essentially the code word for the economics of warfare. It has now expanded to include the important tools used to develop a competitive advantage in business through better quality from a customer perspective while at the same time lower cost. In the business context, logistics is the coordination of activities that assist products as they flow from the supplier to the manufacturer, and then ultimately to the end user. In today’s world, technology and computers have made logistics an essential part of any business or manufacturing process and logistics has become a tool utilized by management to assist them in facilitating proper coordination of supply and demand in the markets in which they compete (Burda, 2015; Tudor, 2012; U.S. Air Force, 2010).
Comparison to Studies
One thing that our textbook is missing when discussing the idea of logistics is any reference as to the concepts roots. The book does not seem to even allude to the fact that the idea has its roots in a military past or discuss the seven factors that influenced the development of logistics into a business concept. The first factor is transportation cost, which grew at a very high rate since the 1960s and required companies to ensure efficiency in the component of its business. A second factor, which highly relates to the first, was that certain technological limitations in production restricted the possibility for companies to lower production cost in response to the increased transportation cost. The holder of smaller inventories by retai...
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...owed that grocery retailers have all built up differentiated supply chain concepts that are operated in various different manners. The discovered five across the board planning issues which were relevant in almost every organization. There five included: order packing unit, store delivery patterns, store replenishment lead times, store delivery arrival times, and roll-cage sequencing and loading carries. The conclusions of the study showed that it was very hard for retailers to automate a large share of their handling processes, especially in the store, where the processes were extremely labor intensive. While less than 40% of the organizations interviewed had attempted to build any comprehensive integration of in-store logistics and upstream operations, the authors noted that this was essential to the efficiency of their logistics networks (Kuhn & Sternbeck, 2013).
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