With so many things to get "right" in your business, James is here to make them even "righter".
Hi, I’m James, this is Whiteboard Wednesday, and today we’re going to be talking about WHAT IS LOGISTICS? This is a really simplified overview, but basically it is the point of origin of a part or process to the point of consumption. Now in-between, there might be a distribution process, a manufacturing process, so let’s get into that a little bit.
So with ITEMS, this might be a physical good or materials, or even equipment or assets that we use in our day-to-day business.
But don’t forget that Logistics also includes the OTHER tangible stuff, which is time, energy, especially information, this one is really, really important.
So a quick way to think about business logistics: It is the RIGHT item in the RIGHT quantity at the RIGHT time at the RIGHT place, for the RIGHT price in the RIGHT conditions to the RIGHT customer. That’s a lot of measurements that you need to make sure that you hit.
It sounds more complicated than it probably is, and really, this is supply chain management. If you have more questions about that, check out our Whiteboard Wednesday video on that subject.
A quick way to think about all this information, which is really simplified, is you need to take the right, accurate information, with the most efficient process and use of time, to create the right opportunities for your business. Then you’re not wasting goods, or wasting any of these other areas, and that you have the greatest ROI on any distribution process, manufacturing process, or just endeavor in general in your business.
That’s this Whiteboard Wednesday, see you again next week.