1. Are you surprised that logistics has such an important economic impact? Why or why not?
I am not surprised to realize the importance of logistics to a country's economy because:
- Logistics is an indispensable component of the economy, closely related to the GDP of a country. A
country where logistics activities are not developed, the economy is also not positive. Even at a bare
minimum, logistics accounts for 1% of the country's GDP.
- It helps to free up and develop the resources of the nation to lead to common development.
Furthermore, the development and improvement in transportation led to the development of logistics
and led to the economic boom of some countries.
6. How do you feel about the statement “logistics is not equivalent to supply chain management”?
Logistics is actually different from supply chain. The most obvious difference is that the supply chain is
responsible for the overall sourcing, processing and distribution of goods to the end customer, while
logistics is mainly focused on moving and storing goods between different supply chain organizations.
The supply chain represents the connection and cooperation between suppliers, manufacturers, logistics
enterprises, wholesalers, retailers and end customers. Logistic is all about transportation and storage,
logistics service providers use a variety of land, air and sea assets to move goods quickly and efficiently.
11. What is the systematic approach to problem solving? How is this concept applied to logistics
management?
The systems approach to problem solving suggests that a company's goals can be accomplished by
recognizing the interdependencies in its key functional areas, such as marketing, production, finance
and logistics. Furthermore, the goals of each function must be compatible with the goals of the
company. Using the total cost approach requires an understanding of cost tradeoffs. In other words,
changes to a logistics operation cause some costs to increase and others to decrease. Therefore,
decisions made by one functional area can have important implications for other functional areas. With
respect to logistics, the systems approach suggests that one should acknowledge the interdependence
of the various activities constituting the function of logistics. For example, a shipping decision can affect
inventory, warehousing and packaging, among other activities, so all costs must be considered
simultaneously when making the decision. .
16. What is co-branding and how does it affect logistics decisions?
A popular modern marketing strategy involves co-branding, which refers to an alliance that allows
customers to purchase products from two or more retailers with the same name in a single store
location. For example Starbucks in walmart store.
It influences logistics decisions such as who ships and how they are delivered at a location. Collaborators
between these brands can:
- Use the same vehicle load to minimize the amount of delivery to one location, but it requires a lot of
coordination between the co-brands
- Takes actions independently, i.e. each brand makes its own deliveries to that location and accepts the
increase in delivery costs.
