Essay On Logistics And Logistics

A simple definition of logistics would be a type of management toward your resources, raw materials, products and goods on the way of allocation such as obtained or acquired, get stored in the inventory or warehouse then transfer to transport out to the hand of the final consumer or customer at a particular location from warehouse and inventories. The cost that happened along the process also known as the logistics expenditure or cost of logistics process and basically the logistics cost will affect the production cost and operational cost as well as this following research purpose and objective is to discover the relationship between logistics activities and the production cost that whether the logistics activities will affect the production

There are many companies or firm having outsourcing activity especially transports of products and resource which they hire the external shipping service provider to help them out in transfer the products to the customer hand which the location may locate in our country. There are actually four main types of logistics vendors which provide logistics service. The following vendors are asset-based vendors, firm which offer physical logistics services by using their own assets such as truck or warehouse that they own and provide service such as truck rental or temporary warehouse for rent, ) management-based vendors which offering logistics management by using database system. integrated vendors which firm have assets like trucks, warehouses or both, the roles is to help firm out by doing shipping matter warehouse and distribution service, last but not least, administration-based vendors. Firm that offers the administrative management

The following advantages probably are cash infusion, cost reduction, sharing the risk with third party and so on. The main thing that is focus by this research is the reduction on cost like production cost and operation cost would be one of the reasons why did firm outsource. Company who tend to outsource have the chance to save the labor cost of particular of logistics process by offer to the third party to handle it which their regional are low in wages such as Bangladesh and china. Since, company had outsource the logistics activity, it means there will having no workers for that particular outsource activities, then, firm are saving the cost as well as the production cost. By having logistics outsource, some cost like fixed cost, operation cost, utility cost, labor cost, machinery maintenance cost, inventory cost, transport cost and etc that may probably contribute direct in helping firm in reducing the production cost. Then again, firm or company are able to gain competitive advantage over production and operation cost. While, there are more money to invest on other aspect which probably will help out the development of company such as R&D to invent more quality product and service to win the satisfaction and reputation by providing a great quality of services and