Logistics Essential to Strategy

This type of differentiation recognizes that customers hold varying levels of expectations. Fast-moving items often are standardized models or parts that customers expect will be in stock and supplied rapidly. Slow-moving items often are odd-sized or nonstandard items for which many customers will expect to wait longer periods of time. Some of the savings in inventory provided by a differentiated approach to the location and availability of slow-moving items can be devoted to providing a higher level of in-stock coverage for fast-moving items. As a result, such efforts might produce a profile of coverage and location such as the one shown in Table B. Similarly, steel service centers have become important distribution links for fabricated steel by bending, cutting, shaping, and even welding basic steel products to order.


Get a competitive price or answers to your shipping questions in just a few simple steps. These example sentences are selected automatically from various online news sources to reflect current usage of the word ‘logistics.’ Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. In the actual village of Kaub, a yard-high digital display on the side of an ancient tower on the banks of the Rhine marks the single most important number in German logistics — a real-time readout of the river’s depth at the tightest spot. 集運 has been successfully applied and will be reflected after adding items to your cart.

Standardize products

More planning priority should be given to encourage logistics parks, especially large-scale logistics hubs. ASCM is continuing to provide the industry-leading APICS certifications and training youʼve come to trust. We’re also expanding to deliver end-to-end professional development and education offerings through our global network of thought leadership partnerships and alliances. Our newly created Supply Chain Learning Link offers online and on-demand learning opportunities for members and customers. Other portfolio brands are Elogistic, a provider of domestic direct shipping, warehousing, distribution and returns logistics for e-commerce businesses, and WorldTech, which offers customized logistics services, including customs clearance and less-than-truckload transport.


The timely, reliable and accurate delivery of products free from damage are thus the major elements of customer service. Competing in the global arena requires efficient supply chains where the cumulative efficiency of all the partners matter. The timely movement of freight helps to cut costs by cutting down inventories and reducing cycle-times in supply-chains, requiring a high degree of logistics skills to manage. It involves a specialized approach to order processing, billing, documentation for statutory clearances, warehousing, payment collection at the delivery points and replenishment mechanisms. In the past this was mainly delivery from delivery centers and logistics warehouses to distribution points such as wholesalers and retailers. But now direct delivery also makes up a large amount of this volume due to online shopping and e-commerce.

During periods of energy shortages, transport costs may figure more heavily in plant and warehouse location decisions. And the locations of retail facilities from resorts to department stores may be influenced more strongly by their proximity to major markets. Customs management, or global trade management, is often considered part of logistics since the paperwork to show compliance with government regulations must often be processed where goods cross national boarders or enter shipping ports. Distribution management oversees the supply chain and movement of goods from suppliers to end customer.

The growth in telecommunication and transportation technologies has led to further growth of the supply chain. The supply chain, also known as the logistics network, consists of suppliers, manufacturing centers, warehouses, distribution centers and retail outlets, as well as raw materials, work-in-process inventory and finished products that flow between the facilities. That being said, from a modeling perspective, there are similarities between operations management and logistics, and companies sometimes use hybrid professionals, with for example a “Director of Operations” or a “Logistics Officer” working on similar problems. Furthermore, the term “supply chain management” originally referred to, among other issues, having an integrated vision of both production and logistics from point of origin to point of production. All these terms may suffer from semantic change as a side effect of advertising.

A professional working in the field of logistics management is called a logistician. It maintains balance in replenishment avoiding stock-outs and excess stock. The system tracks low stock levels and sets automatic re-ordering for each product.

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