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Logistics Management Assignment 2

Logistics is an important business function that supports marketing, manufacturing, and project execution through the movement of raw materials and finished products. Logistics costs can account for 10-35% of a company's gross sales depending on its industry, geography, and the weight and value of its products. While logistics has existed since civilization began, its importance has increased with the growth of transportation networks, urbanization, and the rise of globalization which demands that customers receive the right materials at the lowest cost.

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Amar Chotai
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90 views

Logistics Management Assignment 2

Logistics is an important business function that supports marketing, manufacturing, and project execution through the movement of raw materials and finished products. Logistics costs can account for 10-35% of a company's gross sales depending on its industry, geography, and the weight and value of its products. While logistics has existed since civilization began, its importance has increased with the growth of transportation networks, urbanization, and the rise of globalization which demands that customers receive the right materials at the lowest cost.

Uploaded by

Amar Chotai
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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LOGISTICS MANAGEMENT ASSIGNMENT 2

QUESTION 1

Outline the importance of logistics. Mention the logistic cost:


Logistics is the one important function in business today. No marketing, manufacturing or project execution can succeed without logistics support. For companies, 10 per cent to 35 per cent of gross sales are logistics cost, depending on business, geography and weight/value ratio. Logistics is comparatively a new term, but not the operation. Logistics has existed since the beginning of civilization. Raw material and finished products had always to be moved, though on a small scale. Things began changing with the advance in transportation. Population began moving from rural to urban areas and to business centers. No longer did people live near production centers, nor did production take place near residence centers. The geographical distance between the production point and consumption point increased. And logistics gained importance. Another factor has come into play recently. Since the early 1990s, the business scene has changed. The globalization, the free market and the competition has required that the customer gets the right material, at the right time, at the right point and in the right condition at the lowest cost.

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