5.6.2 The role of logistics in supply chain management

• What is supply chain management?

  Flow of goods, services, information
• Logistics is a key component of supply chain management
• Logistics includes activities such as transportation and warehousing.
• What does supply chain management encompass?

  Sourcing to retail
• Key benefits of supply chain management include reduced costs
• Logistics focuses on optimizing transportation and storage.
• Match the aspect with its description:

  Scope ↔️ Focuses on transportation and storage

  Goal ↔️ Optimize movement and warehousing

  Complexity ↔️ Simpler coordination within the organization

  Time Horizon ↔️ Short to medium term
• What is an example of a logistics activity within supply chain management?

  Transporting products to a warehouse
• Arrange the key activities in logistics in order of their function:

  1️⃣ Transportation

  2️⃣ Warehousing

  3️⃣ Inventory Management

  4️⃣ Order Fulfillment

  5️⃣ Packaging

  6️⃣ Customer Service
• Why is transportation important in logistics?

  Ensures timely delivery and reduces costs
• Inventory management in logistics aims to minimize stockouts and excess inventory.
• Order fulfillment in logistics enhances customer satisfaction and loyalty
• Match the logistics activity with its function:

  Transportation ↔️ Moving goods between locations

  Warehousing ↔️ Storing and managing inventory

  Inventory Management ↔️ Controlling stock levels

  Order Fulfillment ↔️ Processing and delivering orders
• What is the goal of effective logistics management?

  Operational efficiency and customer satisfaction
• Supply chain management includes planning, executing, and controlling the flow of goods and information.
• Logistics is a crucial part of supply chain management that ensures efficient and effective movement
• What is the scope of logistics compared to supply chain management?

  Focuses on transportation and storage
• The goal of logistics is to optimize the movement and warehousing of goods
• Logistics handles transporting goods from a factory to a warehouse, while supply chain management coordinates all stages from raw materials to final delivery.
• Arrange the logistics activities in a logical sequence:

  1️⃣ Transportation

  2️⃣ Warehousing

  3️⃣ Inventory Management

  4️⃣ Order Fulfillment

  5️⃣ Packaging

  6️⃣ Customer Service
• Handling inquiries and support in customer service improves customer retention
• Effective logistics management is crucial for achieving operational efficiency and customer satisfaction
• Warehousing in logistics provides secure and organized storage of inventory
• What is the purpose of inventory management in logistics?

  Control stock levels
• Order fulfillment in logistics enhances customer satisfaction by processing and delivering orders
• Packaging in logistics protects goods for transit
• Match the benefit of logistics with its description:

  Cost Reduction ↔️ Minimizes expenses through efficient transportation

  Improved Customer Service ↔️ Enhances satisfaction via timely delivery

  Enhanced Responsiveness ↔️ Allows quick adaptation to changing demands
• How does optimizing routes contribute to cost reduction in logistics?

  Saves on fuel costs
• A flexible supply chain enhances responsiveness by allowing adjustments to production levels based on real-time sales data
• Diversified supply routes in logistics mitigate disruptions
• What is the primary goal of supply chain management?

  Meet customer needs
• A clothing company sourcing cotton, manufacturing garments, and distributing to retailers is an example of supply chain management in action
• Logistics is a crucial component of supply chain management
• Match the aspect with the corresponding difference between logistics and supply chain management:

  Scope ↔️ Logistics: Transportation and warehousing only

  Goal ↔️ Logistics: Optimize goods movement

  Complexity ↔️ Logistics: Simpler

  Time Horizon ↔️ Logistics: Short to medium term
• What is the primary focus of logistics activities within a supply chain?

  Efficient goods and information movement
• Effective logistics ensures smooth operations and customer satisfaction
• What are the key benefits of logistics in ensuring efficient supply chain operations?

  Cost reduction and improved customer service
• Optimizing routes in transportation reduces fuel costs
• What is one of the primary objectives of logistics in supply chain management?

  Cost reduction
• Ensuring timely delivery and order accuracy contributes to customer satisfaction in logistics