Question 1
The four primary logistic activities are:
1. Transportation
A key logistics activity is to actually provide for the movement of materials and goods from point of origin to point of consumption, and perhaps to its ultimate point of disposal as well. Transportation involves selection of the mode (e.g., air, rail, water, truck, or pipeline), the routing of the shipment, assuring of compliance with regulations in the region of the country where shipment is occurring, and selection of the carrier. It is frequently the largest single cost among logistics activities.
In this case studies, Adidas delivering their product virtually every country in the world and the same time they look UPS to travel extra mile for reach customer. UPS is also providing on-time delivery to the customer which is good for Adidas. This because of Adidas keeps on producing a lot of new item in every month. And many retailers are implementing a just-in-time delivery cycle, requiring more orders more often as opposed to bulk shipment.
2. Information and Communication Communications are becoming increasingly automated, complex, and rapid. Logistics interfaces with a wide array of functions and organizations in its communication processes. Communication must occur between:
The organization and its suppliers and customers.
The major functions within the organization, such as logistics, engineering, accounting, marketing, and production.
The various logistics activities listed previously.
The various aspects of each logistics activity, such as coordinating warehousing of material, work in process, and finished goods.
Various members of the supply chain, such as intermediaries and secondary customers or suppliers who may not be directly linked to the firm. Communication is key to the efficient functioning of any system, whether it be the distribution system of an organization or the wider supply chain.
Here in UPS supply chain solution also support the Adidas
References: • Cooper, M.C., Lambert, D.M. and Pagh, J.D. (1997) Supply chain management, International Journal of Logistics Management, 8(1), 2. • Malone, R. (2006) Logistics costs soar, Forbes.com, 18 July 2006.