Unit 5 - Logistics System

Logistics System

Part of operations focusing on efficient flow and storage of goods, services, and information.

Inbound Logistics

Movement of materials from suppliers to production facilities.

Outbound Logistics

Movement of finished goods to the customer.

Seven R’s of Logistics

Right Product, Quantity, Condition, Place, Time, Customer, Price.

Principles of Logistics (7)

Rapid response, control variance, monitor costs, consolidate, sustain quality, support life cycle, reverse logistics.

1st Party Logistics

Firm transports its own goods.

2nd Party Logistics

Transportation by contracted carriers like ships or airlines.

3rd Party Logistics

Includes transportation, warehousing, customs, and tracking services.

4th Party Logistics

Logistics service providers managing the entire supply chain.

5th Party Logistics

Aggregators of 3PL needs for bulk rate negotiation.

6th Party Logistics

Advanced form combining other logistics levels using full integration.

Forward Logistics

Flow of goods from origin to customer.

Reverse Logistics

Flow of goods for returns, repairs, or recycling.