Section VII[logistics and supply chain] Flashcards
(17 cards)
What is logistics
The activities within an organization that is concerned with product distribution.
What is the flow of goods
The movement of goods from one point to another.
What are 3 components of logistics
- Flow of goods
- Storage of goods
- Distribution services
What is Supply Chain Operations
A system of organizations,
people, activities, information and resources involved in moving a product from the supplier to the customer.
[opiar]
What is the process of supply chain operation
- Acquiring the natural resources
- The movement of natural resources to a suitable space where
it can be stored - Changing into finished products.
- Delivery of the finished product from the point of origin (where made) to the
point of destination (customer).
What is chain of distribution
The various persons involved in the distribution process
called links.]
Who are involved[links] in the chain of distribution
manufacturer: this link is concerned with transforming natural resources into goods and are
the first link in the process.
Wholesaler: they purchase in bulk goods from the producer break bulk and repackage
products for resale in small quantities.
C. retailer: the third link in the distribution chain. Retailers purchase in smaller quantities
from wholesalers goods, further repackaging them to provide a local or smaller quantity to
consumers.
Consumer: these are the end users of the distributed product.
What are the modes of transport
Air: this transport mode is used to move people and goods not too bulky that are urgently
needed to be delivered including mail. It is however costly to use.
Sea: ships, pirogue, boat and cruise liners are the main forms this mode uses. It is used
when time is not a major concern to deliver mainly bulky items over and long distances.
Road: this form of transport is mainly used when moving products within the country. It
uses a wide variety of mechanisms to help deliver goods such as bus, car, truck, container,
motorcycle and taxi. It is suitable for carrying products over both short and long distances
as well items of varying weights.
Pipeline: mainly used to transport liquids over varying distances such as water , crude oil
and natural gas.
Rail: this like road and pipeline is used primarily when moving items within a country that
are very bulky such minerals of all kinds.
Digital Delivery: this mode of transport tends to be specifically used when messages and
documents are to be sent such as email and legal letters.
What roles do transport play in marketing
reduce distribution costs
Security of Supply
Timeliness of delivery
What are the advantages of Supply Chain Operations
Fast delivery
Employment
Wealth in the economy
What are the Challenges of Supply Chain Operations
- Natural disasters
- Political instability
- Product complexity
- Management blunders
What are the ways the processes of logistics and supply chain can benefit firms
- Competitiveness advantage.
- Comparative Cost Advantages.
What are the Problems Associated with Distribution
Spoilage
Inadequate warehouse Facilities
- Lack of proper Security
- Industrial Unrest
- Availability of Docking Facilities
- Product Misdirection
- Ineffective Communication
What are the ways/measures to Counter Distribution Problems
Government could intervene in industrial disputes between employers and
employees causing them to meet at conciliation talks to quickly resolve their
issues.
Stakeholders could improve their communication process and channels to make
use of more effective means of communication such as using the internet more.
Choosing handling services should be made more of a priority selecting only those
distributors that have proven to be reliable.
Improving security at places of storage could eliminate some of the losses suffered
when products get stolen.
Reducing the volume of stocks held in storage could reduce the chances of
product spoilage.
What are the main types of technology used
- Global Positioning System (GPS): It’s a system of satellites that provides accurate location, time, and velocity information anywhere on Earth
- Geographical Information Systems (GIS): computer system used to capture, store, analyze, and display geographical data
- Logistics Hubs:
A centralized geographical location that brings together the key business operators in logistics - Portnet: an international network connecting all involved in the supply chain process
- Global Logistics Providers: firms that manage the transportation of goods across international borders
What is the difference between Logistics And Supply Chain
Supply chain is the process of transforming raw materials into products and getting it to customers. Meanwhile Logistics is the movement of materials in whole supply chain
What are the 7 r’s of logistics
1.Right product
2. Right quantity
3. Right condition
4. Right place
5. Right time
6. Right customer
7. Right price
