Definition of Logistics
The part of the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point-of-origin to the point-of-consumption in order to meet customer's requirements. (CLM)
Logistics Functions
- Transportation
- Warehousing
- Customer Service
- Order Processing
- Parts & Service Support
- Location of nodes (plants and warehouses)
- Packaging
- Return Management
- Inventory Control
- Salvage Disposal
Bottom-line Impact of Logistics (USA)
- Logistics Cost as Percent of Sales: 8% to 16%
- Logistics Cost as Percent of Product Cost: 3% to 10%
- Logistics Cost as Percent of SG&A Costs: 20% to 45%
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