Topic > Difference Between Logistics and Logistics - 1061

Customers believe that their desired products should be available on store shelves whenever they require them. As a result, failure to meet customer demand will cause a serious problem for the company. On the other hand, when it comes to manufacturing, maintaining inventory is an essential logistical process to ensure continuous supplies to the company. Whereas transportation of inventory requires large capital investments in the form of warehousing and insurance; so this will be expensive. To solve this problem, logistics companies tend to reduce the amount of inventory by applying continuous replenishment (Consulting & Decision-Economics, 2002). Furthermore, there is a trade-off between small but frequent deliveries and large but fewer deliveries. In the first case, transportation costs will be high, while in the second case, inventory maintenance costs will be high. Efficient logistics can help overcome this problem by minimizing transportation