As learned from personally working with manufacturers for several years, logistics is the process of designing, managing, and improving the movement of products through the supply chain. The supply chain is all the firms that engage in activities necessary to turn raw materials into a product and put it in the hands of the consumer or business customer. The difference between a supply chain and a distribution channel is the number of members and their function. A supply chain consists of those firms that supply the raw materials, component parts, and supplies necessary for a firm to produce a product plus the firms that facilitate the movement of that product from the producer to the ultimate users of the product-the channel members.
Logistics has the objective of delivering exactly what the customer wants-at the right time, in the right place, and at the right price. In planning for the delivery of goods to customers, marketers have usually looked at a process termed physical distribution, which refers to the activities used to move finished goods from manufacturers to final customers-technology has truly impacted this part of the process for manufacturers. Physical distribution activities include order processing, warehousing, materials handling, transportation, and inventory control. This process impacts how marketers physically get products where they need to be, when they need to be there, and at the lowest possible cost. Technology has enhanced these key aspects of the delivery process efficiently, as well as enables manufacturers, to communicate with their consumers at almost every step along the way.
In your opinion, why is streamlined logistics directly linked to higher customer service?