Definition of logistics
Logistics is a function that is flexible and changes according to the various constraints and demands imposed upon it. Logistics is - Supply + Materials Management + Distribution and logistics is basically the overall management of distributions and supply. There are many different transport methods including-
* Air- This is used to deliver goods fast and also internationally. * Water- This can be used to transport goods slower. Sometimes unreliable. * Road- This is to be used nationally, and used by the most ranges of business. This is the most popular way of transportation. * Rail- This is the quicker way of transporting goods. Royal Mail use rail to transport goods to their regional offices. * Container- Containers are used to deliver goods simply because they don’t need as much security and also cost less in transport, meaning more profits. When we compare different retailers, we have to take into consideration: * The amount of stores that the retailer has.
* Where the location of the stores are
* The supply chain.
Tesco has over 7500 stores in the UK, which includes a mixture of high street, out of town and local stores. They have a wide supply chain which stretches globally as they try to source the cheapest products to sell in their supermarkets. Independent stores may have only a few stores at the most (for example Merrie England). The location of the stores are on the high street and in town centres and the supply chain will only reach nationally.
Small retailer – Small retailers usually use wagons to transport from manufacturer to retailers, and mostly use wholesalers. These are more likely to have less suppliers to work with then larger retailers because of the size of the stores.
Multinational retailer: the retailer buys it direct from the multinational manufacturers and then supplies to the customers, normally using wagons from the distribution centres....