Operations Logistics

Paper Summary:

This paper explains that proximity to customer markets is now one of the decisive factors taken into consideration when deciding on a company's new location; however, this factor varies according to the type of facility. The author stresses that, from the marketing concept perspective, the main objective of the logistics system is to conform to the consumers' and users' requirements. The paper points out that the requirements, which must be met by companies' business models, are related to product cost, quality and delivery time.

From the Paper:

"Obviously, the distribution services level is higher when spatial access is easier, when the batch's size is smaller (in order to diminish products storage needs and expenses for the client), when the necessary time for obtaining the products is smaller, or when there are more products choice possibilities. Besides these basic services, the following can be taken into consideration: credit offering, installing and maintaining product's quality, offering information, establishing deliveries, and others."

Sample of Sources Used:

• Cranmer, Les J. & Wegfahrt, Art M. (2006). Ranked #9: Proximity to Major Markets. Area Development, Corporate Survey Series. Retrieved June 24, 2007 from http://www.areadevelopment.com/corpSurveySeries/oct06/proximity06.shtml.
• Betman, Donald (2000). Distribution and Logistics Strategy. W & H Systems, Inc. Retrieved June 24, 2007 from http://www.whsystems.com/Distribution%20&%20Logistics%20Strategy.pdf

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• Term Paper # 122117 : "Operations Management"

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