Elaisa Mae V.

Sebastian
BSACC-1 (BLK 1)

MODULE 5: SUPPLY CHAIN MANAGEMENT AND LOGISTICS

Lesson 2: Logistics and Distribution Management
ACTIVITY 1

QUESTION:

1. How important Logistics Management in Supply Chain?

The role of logistics in supply chain management is critical. It is used to organize and
coordinate the timely, safe, and efficient transfer of items. ... Regardless of the distance,
each consumer expects their things to arrive on time and in perfect condition.
2. What is the difference between Supply Chain and Logistics?

The most basic contrast is that supply chains are in charge of the complete sourcing,
processing, and delivery of commodities to the end customer, whereas logistics is
responsible for moving and storing goods across supply chain businesses. The primary
distinction between logistics and supply chain management is that logistics management is
the process of integrating and maintaining (flow and storage) goods within an
organization, while supply chain management is the coordination and management
(movement) of an organization's supply chains.
3. Identify and explain the 7 R’s of Logistics.

Better logistics management necessitates efficient planning and handling of freight

difficulties. This is critical not just for preventing supply chain inconsistencies, but also for
reducing additional expenditures. The concept of the 7 R's or 7 "Rights" is one of the most
fundamental concepts in logistics management. These seven "Rights" form the foundation
for the proper operation of all processes, from receiving items through delivering them to
clients.

•RIGHT PRODUCT
 Freight firms should have detailed information on the products they will be
transporting. Product knowledge is critical for effective time and resource
management.

•RIGHT CUSTOMER
Companies in the logistics industry should be aware of their target market in order
to find potential consumers. They will have a greater chance of gaining leads if they
target the proper customers in the market.

•RIGHT QUANTITY
Knowing the correct number of merchandise to send to retailers is critical. Companies can
use sophisticated AI systems to create accurate predictions for the number of goods to be
transported in the near future based on historical data. This gives an idea of how far ahead
of time truck bookings should be made. The right quantity differs from one firm to the next
and from one season to the next.

•RIGHT TIME
Time is extremely important in the realm of shipping management. When it comes to
delivering the goods to the ultimate consumer, there should be no delays. Prior planning
and management were required in order to ship in a timely manner.

•RIGHT CONDITION
When a product reaches the end client, logistics companies must ensure that it is in good
condition. The products must be in good condition and the packaging must be intact.
Proper R&D is required to ensure that the product reaches the customer in good shape.

•RIGHT PRICE
Price must be considered, as well as the management of all shipping operations. For cost
effectiveness, logistics organizations must monitor better freight routes and estimate exact
loading units. This guarantees that their costs are kept to a minimum.

• RIGHT PLACE
What good are the other six considerations if the product doesn't reach its intended
location? Truckloads should be properly tracked from both the customer and the
company's perspective. This will aid in the delivery of the shipment to the correct location.

Logistics is defined as the delivery of the right products in the right quantity and condition
to the right place at the right time for the right customer at the right price, according to the
Logistics definition. For good logistics management, these were the 7 "Rights."

4. What are the Logistics Functions? Identify and explain

Transportation/delivery, storage, packaging, cargo handling, distribution processing, and

information processing are all functions of logistics, and various methods have been put in
place to get things from the factory or production location to the consumer swiftly and on
schedule.
5. What are the steps in Substituting Information Strategy? Identify and explain.

•Improve communications - Talk with suppliers regularly and discuss plans with them.
•Collaborate with suppliers - Use HT to coordinate deliveries from suppliers. Remove
obsolete inventory. Use continuous improvement tools and share observations about
trends.
•Track inventory precisely - Track the exact location of inventory using bar codes and/or
RFID (radio frequency identification) with GPS (global positioning systems).
•Keep inventory in transit - It’s possible to reduce systemwide inventory costs by keeping
inventory in transit. One method of keeping inventory in motion the maximum amount of
time is a distribution strategy called cross-docking. Used with particular success by Wal-
Mart, cross-docking involves moving incoming shipments directly across the dock to
outward-bound carriers. The inventory thus transferred may literally never be at rest in
the warehouse.