Structure of the supply chain
•One clear trend, though, is towards shorter supply chains.
•Organisations of every type are realising that they can reduce costs and increase customer service by moving materials quickly through a short supply chain.
•This usually means removing layers of intermediaries, and concentrating logistics in fewer facilities.
Location of facilities
•The best location for facilities depends on many factors, for example:
•If an organisation wants fast delivery, it will use local warehouses that are physically close to final customers;
•if it wants low costs, it will concentrate stocks in large, centralised warehouses that are inevitably some distance away from customers;
•if it importsand exportsa lot of materials it might use warehouses near to ports or rail terminals;
•if it manufacturesgoods, it will have a stock of finished products near the factory.
Structure of the supply chain•One clear trend, though, is towards shorter supply chains.•Organisations of every type are realising that they can reduce costs and increase customer service by moving materials quickly through a short supply chain.•This usually means removing layers of intermediaries, and concentrating logistics in fewer facilities.Location of facilities•The best location for facilities depends on many factors, for example:•If an organisation wants fast delivery, it will use local warehouses that are physically close to final customers;•if it wants low costs, it will concentrate stocks in large, centralised warehouses that are inevitably some distance away from customers;•if it importsand exportsa lot of materials it might use warehouses near to ports or rail terminals;•if it manufacturesgoods, it will have a stock of finished products near the factory.
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