Logistics: Economics and Supply Chain
1. What are the major forces or external factors that have impacted our economy during the latter part of the 20th centuries? How have each of these factors influenced companies as well as their respective supply chains? Which of these factors do you feel is the most important for a computer company? Why?
In the 21st century, transportation systems will face significant challenges and problems because of global environment and the changing economic base in the United States. With combination of economic, technological, sociocultural, political, and biological factors. Many organizations developed demand-driven supply chains which could rapidly respond to …show more content…
Increasing competitive pressures and market globalization are forcing firms to develop supply chains that can quickly respond to customer needs. To remain competitive, these firms must reduce operating costs while continuously improving customer service. With recent advances in communications and information technology, as well as a rapidly growing array of logistics options, firms have an opportunity to reduce operating costs by coordinating the planning of these stages. Products and related services, has been an important focus of logistics and transportation and is an important element in supply chain management. Effective transportation to meet customers expects their orders to be delivered in a timely, reliable, and damage-free manner. The second flow is the information flow. Information is the trigger or signal for the logistics or supply chain system to respond to a customer order. The third flow financial. Payment for goods, services, and orders received. A major impact of supply chain compression and faster cycle order times has been faster cash flow.
What is the role of transportation in a supply chain? Why is this role so important in today's environment?
Like many economic activities that are intensive in infrastructures, transport sector is an important component of the economy impacting on development and the welfare of populations. When transport systems are efficient,