Using Supply Chains to Create Value for Customers
Read this chapter. Think about the processes and key components involved such as costs, outsourcing, social responsibility, environment, planning, and inventory control. Watch the video clips for Who Ya Gonna Call and Amazon Fullfillment. Answer the review questions at the end of each section.
Warehousing and Transportation
KEY TAKEAWAY
Some firms store products until their prices increase. A distribution center is a warehouse or storage facility where the emphasis is on processing and moving goods on to other parts of the supply chain. Warehousing products regionally can help a company tailor its product selection to better match the needs of customers in different regions. Logistics refers to the physical flow of materials in the supply chain. Not all goods and services need to be physically transported. Some are directly given to customers or sent to them electronically. Products that need to be transported physically to get to customers are moved via, air, rail, truck, water, and pipelines. The transportation modes a firm uses should be based on what its customers want and are willing to pay for.