Logistics

Brief Description 2

• Logistics is necessary for

o moving purchased materials from suppliers to
buyers
o moving work-in-process materials within a firm
o moving finished goods to customers
o returning or recycling goods, and
o storing these items along the way in supply chains.

Sample Footer Text Element 01/03/2024

Main Aspects that Logistics Address

• Time utility
o when customers get products delivered at precisely the right time, not
earlier and not later. The logistics function creates time utility by
determining how deliveries can be made in a timely manner and where
items should be held prior to delivery.

• Place utility
o when customers get things delivered to their desired locations.
Type of Data that Logistics provide

• Freight transportation system

o moved 49.5 million tons of goods valued at more than $52.7 billion each
day in 2015
o about 56 tons of freight per year for every man, woman, and child
o 4.2 million miles of public roads
o 140,000 miles of rail track
o 2.2 million miles of gas distribution pipelines
o 25,000 miles of navigable waterways
o 19,000 general and certificated airports, and 183 shipping ports.
Type of Data that Logistics provide

• Freight transportation system

o allows the user to access critical tasks dealing with the
o procurement and
o management
For Hire Logistics

• Freight transportation system

o well-connected within the industry
o have power to negotiate
o have access to the right warehousing infrastructure, technology, and tools.
o a way to save money
Documentation Types in Logistics

• Consignments
• Purshase Orders
• RFP
• RFQ
• Invoices
• Bills of lading
• Shipping slips
• Customs documents
• Packing lists
Logistics pricing

• Cost-of-service pricing
• when carriers establish prices based on their fixed and variable costs of
transportati
• Value-of-service pricing
• transportation providers price their services at the highest levels the
market will bear.
• FOB
• When goods are purchased from a supplier, it may quote a price that
includes transportation to the buyer’s location.