What is Logistics?

We do more than deliver packages in big, brown trucks; we also have over a hundred years of
experience in logistcs. But what exactly is logistics--and what does it mean for you?

The simplest definition of logistics is the handling of the details of an operation, but it's not
always that simple. David Andries, Vice President of UPS Customer Solutions, explains that it's
also "implementing efficiencies across a business's entire supply chain that help them achieve
their strategic goals."

Not sure your business has a supply chain? It does. And it needs logistics to run smoothly.

Logistics and Your Supply Chain

"Every business has some type of supply chain," says Alan Amling, Vice President of Contract
Logistics Marketing for UPS.

Take, for example, one of the simplest businesses of all--a lemonade stand, he describes. Think
of all the little pieces that go into setting it up. Lemons, sugar, and plastic cups may all be on
hand at home, but they had to get from their different sources to the grocery store first--then into
your cart and your car, and driven home. Water is a must, to mix the lemonade and make the ice.
A home improvement store has the materials to build the stand itself. And don't forget to pick up
poster board to make the sign out front--attracting customers is key.

Altogether, this is the lemonade stand supply chain: getting all the different supplies from points
A, B, C, and so on to the stand and then into the customers' hands. You don't want to pick up
lemons, only to realize you have to go back out to the same store for sugar. Well-orchestrated
coordination of each step--that's logistics.

Regardless of the scale of your business, logistics is intertwined with your supply chain.

"Think of the supply chain as everything encompassing end to end, while logistics includes all
the different functions that connect source to customers," says Amling. "Logistics is the blood,
and the supply chain is the body. So if the logistics doesn't flow--or one part of logistics, whether
it's the transportation, or distribution, or brokerage--if that doesn't flow, then the supply chain is
damaged."

Logistics and supply chains are nothing new. But they are becoming more complex, and
presenting companies with new challenges. Neighborhood lemonade stands still have local
supply chains, but many businesses are expanding to other cities, states, countries--even
continents. Customers want things faster than ever but on their own terms. Some buy everything
from their smartphones. Others prefer shopping in brick and mortar stores.

Keeping pace can be tough. So how do you overcome logistical pain points to gain a competitive
advantage in your marketplace?
Logistics Expertise
We'll be your consultant. We can look at your processes from an engineering perspective so we
can help you configure your business processes to keep things efficient so you can continue to
grow.

With our global transportation network already in place, including storage and distribution
facilities around the world, we have the infrastructure to help you expand to new markets and
move products quickly, while meeting compliance regulations.

Beyond our global footprint, our Customer Solutions team offers companies logistical expertise
in:

 Process Engineering: Redesigning your business processes to increase efficiencies so you

can continue to grow.
 Information Technology: Creating customized systems for shipping, tracking, and
reporting, giving you the control and visibility you need.
 Supply Chain Optimization: Analyzing your company's transportation and distribution
plan, making recommendations on how it can be most effective, and continuously
looking for improvement opportunities--while mitigating risk.

We sit down with our customers and really listen to their needs. We get to know their company,
and their industry. And we develop logistics solutions accordingly.

"This world always has these large dreamers that come up with great concepts," says Andries.
"Where we come in, is we can take those big concepts, and we can break it down with our
skillset from a logistical standpoint, and...help our customers figure out the most cost-efficient
and effective way to support their business strategies."

https://www.ups.com/content/us/en/bussol/browse/article/what-is-logistics.html 20/04/2016

Improve Logistics Efficiency

When it comes to business logistics, continuous improvement is necessary to facilitate robust and sustained growth.
Rising prices on expenses from energy to labor to raw materials pose a challenge to every company's bottom line. By
improving the efficiency of their logistics processes, companies can gain and sustain an edge over their competitors.

To implement a plan that will successfully optimize your logistics operations, consider strategies that minimize costs,
fully utilize production capacity, and improve the overall quality of customer experience.

Consider these four methods to increase logistics efficiency:

1. Maximize storage. By analyzing and implementing warehousing procedures, companies can store, move, and
ship products more effectively. This requires adequate and well-trained warehouse staff, strategic sequencing
(to only move products the minimum required number of times), and use of vertical storage to fully utilize
 available space. Carefully scrutinizing ordering patterns to ensure quick delivery of products, as well as
effective space utilization, is also important.

Related: Learn more about DDI's warehousing services and view information about our climate controlled
facilities.

2. Optimize transportation. The rising cost of transportation accounts for increased prices in virtually every
industry. To reduce transportation costs, companies should examine every factor that might increase or
decrease expenses.

i. This starts with the design of products and packaging for optimal size and weight.

ii. Proper load and delivery route planning ensures trucks are always carrying full loads.

iii. Finally, identify and utilize the most cost-effective packaging and shipping methods for products.

Related: Learn more about DDI's in depth transportation services and our central location.

3. Automate communication technologies. Logistics management software communicates between the

warehouse and accounting departments and allows for the delivery of timely updates to the customer. This
significantly streamlines the entire process, from storage through shipment, and requires minimal staffing.

Related: View DDI's technology services that provide the most efficiency and value to our customers.

4. Encourage feedback. The success of a company depends on input from all of its employees or teams,
regardless of their role in the logistics process. Carefully consider feedback and suggestions from staff
concerning practices that could further improve logistics efficiency.

Related: View DDI's list testimonials and case studies.

While logistics management is a complex process, utilizing the above strategies can help you make the most of all
warehousing, staffing, transportation, and communication resources. The improvement of logistics planning will
inevitably lead to higher productivity, happier customers, and a more profitable company. If you would like more
information about how to improve your logistics efficiency, contact us today.

http://www.ddilogistics.com/Resources/FourWaystoImproveLogisticsEfficiency.aspx

3 Strategies for Improving Supply Chain

Logistics
Inside-ERP Dec 2, 2014 | Comments (0)
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Supply chain logistics is the nightmare that keeps logistics managers awake at night. Trying to ensure
that everything ends up in the right place at the right time and within budget is bad enough; then, there’s
the added complication of the impact supply chain logistics has on an organization. Combine all of that,
and it can give even the best supply chain managers an ulcer.

Of course, it doesn’t have to be that way. The three tips presented here probably won’t take all the
pressure off, but they can help decrease the stress of supply chain logistics. As an added benefit, one or
two of them might even help decrease costs and increase profits.

Know The 'Whys' of the Supply Chain

Probably one of the biggest mistakes an organization can make when it comes to supply chain logistics
is not understanding how it all fits into the corporate strategy. You do have a corporate strategy, right?
Because that’s an essential element of knowing why the supply chain exists. For some organizations, the
corporate strategy is to deliver better-quality products than the competition. For some, it’s to deliver
products faster.

Whatever the corporate strategy, it determines why the supply chain exists. That in turn determines why
the supply chain moves the way it does. To meet those requirements, then, a whole set of factors comes
into play, including processes, infrastructure, IT systems, and the people needed to ensure that the
supply chain is accomplishing what it should. It’s essential to have complete clarity around the purpose of
the organization’s supply chain. Only through this clarity is it possible to see how the supply chain affects
the organization.

Know When Your Supply Chain Structure Isn't Working

 It sounds like it would be obvious, but in reality, sometimes a broken supply chain isn’t all that easy to
spot. From the outside, it might look like it’s working just fine. Then, when you get into its inner workings,
a completely different picture takes shape.

Even with a broken supply chain, it may still be possible to get products from one location to another; the
question is, how efficiently is that transport happening? It could be causing a drain on the entire
organization if too much time or capital is being put into procuring products that don’t move, storing
products that don’t move fast enough, shuffling products from one location to the next to meet
unexpected demand—the list goes on.

For some organizations, the answer might be to consider demand-driven logistics. The processes
surrounding demand-driven logistics move the management of logistics functions off the island they’ve
been relegated to and turn logistics into an organizational function that can lower transportation costs,
reduce dead or slow inventory levels, and increase customer satisfaction.

Maybe demand-driven logistics isn’t right for your organization, but until you examine existing processes
to see what works and what doesn’t, it’s difficult to know whether this or another solution might be the one
that moves logistics from a drain on resources to a corporate asset.

Know When Outsourcing Makes Sense

Let’s face it: not every organization is cut out to be a supply chain logistics provider. Organizational core
competencies vary with each organization. There’s nothing that requires an organization to handle its own
logistics, especially when there are so many more-than-competent third-partly logistics providers that can
handle the tasks associated with supply chain management better and at less expense than trying to do it
in house.

If after examining the supply chain from the inside and the outside it looks like the process needs more
than you have the talent or capability to handle, consider outsourcing. The result could be a supply chain
that saves the organization money, improves customer satisfaction, and is far more efficient.

About the Author

 Jerri Ledford has been writing about business technology for more than 20 years. Her articles,
profiles, news stories, and reports have appeared in such venues as Intelligent Enterprise, Network
World, Information Security Magazine, DCM Magazine, and CRM Magazine. She develops and teaches
technology courses for enterprises such as Sony, HP, and CNET and is the author of 19 business
technology books, including Google Analytics and The SEO Bible. Jerri is a Studio B analyst.

http://it.toolbox.com/blogs/inside-erp/3-strategies-for-improving-supply-chain-logistics-64816

Logistics Strategy

Contact for more details

Logistics Strategy is the science of evaluating the most cost effective methodology of
distributing goods to market while achieving service level objectives. It is important for
companies to recognize that logistics strategy can be product-specific, customer-specific,
location-specific and that supply chains for each industry are dynamic and evolving.

KOM International works with clients to develop and execute logistics strategies that
optimize the flow of products and information within the supply chain, within your
distribution network and within each distribution center. To achieve supply chain excellence,
it is critical to continuously evaluate alternative cost-cutting strategies that enable
competitive advantage. Some examples follow:

Fast / Slow  Does your company have a logistics strategy to handle fast
moving products differently from slow and medium moving
products? Within your distribution center(s)? Within your
distribution network? Is it economically beneficial to set up
regional "fast" facilities and a centralized "slow" facility?

DSD / Non-stock  Does your company have a clear understanding of all of the
cost components and lost profit opportunities for products
that are deemed "Direct store Delivery" or "non-stock"
items? Is there a logistics strategy in place that clearly
delineates when an item should be inventoried?

Third Party Services
 Does your company need to own and/or operate its own
distribution facilities or is it more effective to have third
party logistics providers manage some or all aspects of your
logistics functions? What are the economical, service and
other considerations your company needs to consider
before taking these steps?

Hub and Spoke  Are there economical cost of goods advantages to sourcing
products into a centralized distribution center that
 subsequently distributes to regional facilities or branches
through a hub and spoke distribution network?

Inbound Logistics  Are there opportunities to reduce your landed cost of goods
through improved inbound logistics strategy including load
consolidation, reduced handling, backhauls, etc.?

Outbound Logistics  Are there opportunities to reduce your outbound

transportation costs through improved private fleet routing?
Through improved carrier rate shopping? Through load
consolidation opportunities, Etc.

Facility Consolidation  Is your company operating too many distribution centers

that are underutilized? What are the economical benefits
and service impacts of closing one or more of your
distribution points?

Inventory reduction  Is your company carrying the right assortment and

inventory levels to achieve service level objectives? To
minimize inventory assets? To minimize storage and
handling costs?

Supply Chain  Are there opportunities to work with your trading partners
to reduce supply chain complexities and improve service
levels for specific products / vendor product lines? Are there
internal supply chain policies that hinder cost-effective
operations?

Global Logistics  Are there opportunities to improve global logistics to reduce

inventory levels in the supply chain? To reduce order cycle
times? To reduce supplier lead times? To reduce logistics
costs?

New Business  Is there a new business opportunity that will increase sales
opportunities and logistics costs? Will the opportunity be profitable? What
will the incremental business and logistics costs be as a
result of this new business?

KOM International's Approach

To conduct logistics strategy studies, KOM International uses a combination of proprietary

data gathering techniques and advanced analytical tools that enable our clients to achieve a
clear, in-depth understanding of the most effective logistics strategy to pursue for each
product, customer, supplier, distribution center, operating division and country. Most
importantly, KOM International works with our clients to formulate conclusions that are
easily understood by all members of the executive team.
Regardless of the size of your company, supply chains are complex and transcend multiple
departments within your firm. To make the most effective decisions for your business and
your customers, a qualified supply chain consulting firm can provide value by conducting an
unbiased evaluation of the facts and statistics behind your enterprise. By translating
detailed operating data into meaningful logistics strategies, KOM International has helped
hundreds of companies add millions of dollars to the bottom line.

http://www.komintl.com/pub/eng/services/strategies.htm