Name: Sasutil, Steffane Mae L. BSCA-2 SCHED: 5:01 to 6:31 P.

M (MW)

Activity No. 3

1. Logistics – the operations include planning, implementing, and maintaining the transportation
and storage of goods that include services as well as information of initial point and the
endpoint. Basically, it is an activity that comes under the supply chain system. If a person works
in the field of logistics management, then we can call him a logistician.
2. Supply chain – is the entire system and all processes involved in delivering products or services
to end-users. This network between companies and suppliers includes beginning stages like
sourcing and procurement to final delivery, and involves all activities, employees, technologies,
organizations , data, resources, processes, and components involved with getting goods or
services to the users.
3. Seven R’s of Logistics :
 Right Product – the goods, materials or services offered.
 Right Customer – building up for the long term
 Right Quantity – meeting the demand
 Right Quality – ensure the condition of your goods
 Right Place – getting product where it should go
 Right Time – keep your deliveries on time.
 Right Price – establish a competitive prices based on market data.

In short, a suppy chain managers should remember to deliver the Right product to the
Right customer, in the Right quantity, in the Right quality , at the right place , at the
right time and finally at the right cost.

4. Third Party Logistics (3PL) – provider is specialist company that provides a range of distribution,
storage, transport and fulfillment services.

5. Reverse Logistics – is the process of returning a product from the customers front door to seller.
Orders marked “Return” to “Origin” and returned to the customers warehouse make up reverse
logistics.
6. Logistics Value Proposition – is a cost value that seeks to combine operating competency and
dedication to satisfy the expectations and requirements od specific groups of consumers. A well-
designed logistical network must be able to respond quickly to customers while minimizing
operational variance and inventory commitment. However, various groups will have different
ombinations. Firms can get a competitive edge by using a well-designed and run logistical
system.
7. Select Warehouse Location – A warehouse is one such essential segment of your online
business strategy. It is used to manage and store the products to be sold online. So, before you
decide on making a particular building as your warehouse, it is essential for you to throroughly
determine whether the layout and space will apply to fit in your requirements or not. Your
 warehouse must be larger horizontally rather than vertically. A warehouse location can help
reduce transportation costs and travel time. It also adventageous if your chosen warehouse is
close to important transportation systems, such as railways and ports.
8. Select Transportation Made and Carriers – It could be road, rail, air, maritime or intermodal
transportation. But mostly shipments that initially were carried by another mode of
transportation are completed by road transportation.
9. Develop state of the art information systems – traditional logistics systems are often designed to
support a variety of business activities. For his own management systems, industry always
budgets significant maintenance costs.
10. Pooling Risks – in business logistics it can reduce the total variability of demand and/or lead time
and thus uncertaintu and risk (the possibility of not achieving business objectibes) by
consolidating individual variabilities (measured with the standard deviation) of demand and/or
lead time. It is the collecting and administration of financial resources with the goal of making
big, unexpected individual financial risks predictable and allocated across all pool memebers.