Logistics operations system activities in an organization are simply described as the management of material flow and distribution of products to customers. More so, these activities comprise but not limited to: transportation, distribution planning, inventory and warehousing and order processing.
Sourcing techniques into several categories which includes; global sourcing; out-sourcing & in-sourcing and single sourcing & multiple sourcing etc. and each category are having its own merits and demerits. Moreover, it is a process or strategy of taking gain from the comprehensive efficiencies to out rule the competitive market structure in the purchasing or procurement process in logistics operation in an organization.
On the other hand, several organizations get their major supplies from far east country where there is low cost of labour and production with the adoption of global sourcing technique in their logistics operation. However, it is important for the logistics team to be aware of the negative aspects of this technique that could affect the company’s operation effectiveness not only concentrating on just the brighter side for instance: high cost of transportation, greater length of supply-lead-time which results to supplies interruption or supply chain disruption and the effect of political weather or climate change resulting to likelihood of setbacks of product delivery.
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