Join Eddie Davila for an in-depth discussion in this video Understanding logistics, part of Supply Chain Foundations.
- Let's take a trip around the world. Sounds like fun, doesn't it? What do we do? Hop on a plane, get to a foreign city and hope they have a hotel room for us? No, it's not that easy, is it? What will we need to make this trip happen? A list of cities and dates. We need to find flights at reasonable prices, hotel rooms. Do you have luggage for a trip of this magnitude? What should we pack? Do we need special travel documentation, a passport? Who's driving us to the airport? At the airport, we'll need to be ready for check-in, security and boarding.
We might have to catch one or more connecting flights along the way. Do we have snacks and drinks for our flight? When we get to the first city, how will we get to our hotel? Do they take our credit card for payment? Global travel is not just about getting on an airplane. The flight is really the easy part. The research, planning, scheduling, and packing, that's the hard part. That's logistics. In business, moving products around the world is even more challenging.
Each product is different. Are there special laws to consider when shipping your item? Does the destination country require special documentation for your import? Will I put my products on a train, plane, truck, or ship? Will I need insurance? How can I pack my items so they aren't damaged or stolen during shipping? When my items get to the destination country, who will be there to receive it and ship it to the final destination, and what happens if something goes wrong? Am I responsible for the lost items, or is somebody else? Who will I call to get help? This is why companies value logistics specialists, or as they prefer to be called, logisticians.
Look around the room. Look in your refrigerator. Look in your bag. Pick any three items. Ask yourself, "How did that get here?" Every one of those items has its own special story. Think about packaging, documentation, insurance, modes of transportation, customs, rules, and regulations. Think about the companies that help plan, ship, and track those items. Now that you're thinking about that, now, now you're thinking like a logistician.
- Identify parts of a supply chain.
- List the keys to successful global supply chain management.
- Describe the concept of inventory in supply chain.
- Explain how to choose a supplier.
- Work with SCMs in different industries.
- Describe how to transport and distribute your product.
- Integrate and coordinate the entire supply chain.
- Create ethical and sustainable supply chains.