Logistics System
A logistics system consists of different functions and activities, such as the following:
1. Customer service is a core function in the logistics process. Each business entity should have a customer service department to handle complaints, special orders, loss and damage claims, returns, bills problem, and etc. This function becomes crucial because any dissatisfaction can lead to failure to retain customers.
2. Inventory management is to maintain the stock of raw materials and half-finished products. In order to satisfy the customers' demand and minimize costs, a company should establish an optimal level of inventory to meet the market demand that exceeds your expectations, and at the same time, minimize your inventory holding costs and inventory write down costs.
3. Transportation has taken a great role in many logistics systems for two reasons. First of all, globalization and importing-exporting activities make most products necessary to be transferred from one country to another. Secondly, information revolution has propelled the manufacturing process and consumer behaviors to be changed drastically. Traditional transportation methods need to be upgraded to accommodate modern transportation demand, therefore, containerization and usage of information sharing system emerge.
4. Storage is needed to manage the materials and store ready-for-market products in warehouses. There is new technology applied in the storage, for example, automatic warehouse. Old-fashioned warehouse has become the distribution center where container trucks deliver and pick up the goods.
5. Information system links all logistics processes and integrates all information to ensure all the handling of large quantity of goods are delivered in an efficient, cost-effective and accurate manner.
Questions:
Which of the following function does a logistics system include?
A logistics system consists of different functions and activities: ① Customer service is a core function in the logistics process.② Inventory management is to maintain the stock of raw materials and half-finished products. ③ Transportation has taken a great role in many logistics system for two reasons ． ④ Storage is needed to manage the materials and store ready-for-market products in warehouses. ⑤ Information system links all logistic processes and integrate all information to ensure a11 the handling of large quantity of goods are delivered in an efficient, cost effective and accurate manner.
Why is customer service an important element?
Customer service is a core function in the logistics process. Each business entity should have a customer service department to handle complaints, special orders, loss and damage claims, returns, bills problem, and etc. This function becomes crucial because any dissatisfaction can lead to failure to retain customers.
What is the optimal level of inventory?
In order to satisfy the customers’ demand and minimize costs, a company should establish an optimal level of inventory to meet the market demand that exceeds your expectations, and at the same time, minimize your inventory holding costs and inventory write down costs.
Why is transportation so important to the current business environment?
Transportation has taken a great role in many logistics system for two reasons. First of all, globalization and importing-exporting activities make most products necessary to be transferred from one country to another. Secondly, information revolution has propelled the manufacturing process and consumer behaviors to be change drastically. Traditional transportation methods need to be upgraded to accommodate modern transportation demand, therefore, containerization and usage of information sharing system emerge.
Why does information system contribute to an efficient logistics system?
Information system links all logistic processes and integrate all information to ensure a11 the handling of large quantity of goods are delivered in an efficient ， cost effective and accurate manner.