Tailored Logistics : a Summary

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Logistics is the management of goods from point of origin to destination. There are many things to take note of in the current logistics world. Consumers have become more and more demanding due to advanced technology. Advanced technology has brought much convenience to consumers which cause them to demand for fast delivery, customization of product and so on. Consumers have different needs and wants and logistic people need to find ways to satisfy those needs and wants. Logistics is essential to product strategy as companies offer goods in distinct ways instead of just the many varieties. In distinct ways is such that consumers value reliability, convenience and support and dependability that the company offers along with their tangible products. Coca- Cola Japan leads by this, their delivery truck drivers helping to set up displays at supermarkets and cleaning up back rooms for small retail shops. In order to offer goods in distinct ways, the company needs to figure out how to manage their logistics in such a way as to create target segments of customers that can be served by distinct pipelines profitably. Be it goods or services, one size of a pipeline does not fit all. To change a company through its marketing, they can offer “everyday low prices” to create leveled demand. Therefore giving an ease to their logistics systems rather than getting financial gains from occasional price cuts and rebates. With this simplicity also allows companies to split their pipelines. On the manufacturing side, logistics proves to be a success on the upstream of delivery (flexible manufacturing systems, the just-in-time and quality strictures among others). All these create flexibility in factories and allow production cost-effectively for those different market/customer segments. Large product lines create complexity which results in high costs and loss of value. Averaging is a result of this complexity. It is where everything is done at an average speed and cost. This...
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