I speak to individuals about the companies they work for, and they refer to different departments, such as Planning, Purchasing, Warehousing, Inventory Control, and Transportation. These are many of the roles within the scope of Business Logistics, yet their companies have not realized they are all intertwined and can be banked against each other; traded and bartered for better company discounts. Additionally, they mention Returns, which is actually referred to as Reverse Logistics.
All of these roles are components of the Supply Chain in every industry. Logisticians help companies realize cost savings throughout the Supply Chain. Speaking with Logisticians about the Supply Chain encourages businesses to locate and differentiate the savings their companies could reap. This leads to new profit opportunities for their organizations.
Once I speak to individuals about the scope of Business Logistics and what it entails, they are fascinated by it. They tell me I should speak to their Management about the cost savings they can make through tradeoffs of services. There should be more high profile papers and articles on Business Logistics to educate the business world. It’s not just something students should learn about in college.
Supply Chain assists organizations with cost savings by streamlining the Planning and Purchasing roles so that the right materials are at the right place at the right time, so manufacturing can continue in order to exceed Customer expectations. No manufacturing down time is the goal of many businesses, in order to achieve just in time advantages. JIT can either reduce or eliminate inventory carrying costs of the organization, and can promote lean manufacturing processes. Lean manufacturing processes initiate cost savings throughout the Supply Chain, and savings can be transferred to Customers.