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Flashcards in Logistics Deck (12)
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1

Factors affecting logistical decisions.

Nature of product
Production site
Market
Cost of transport
Type of business
Size of business
Nature of demand
Mode of transport
Lead time

2

Benefits of internal logistics

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Total control
More reliable
Greater flexibility
Cheaper long term
Better reputation
Increase the asset value

3

Benefits of external logistics

Faster
Cheaper
Specialist firm
No initial setup costs
Easier to forecast

4

What is Reshoring

It is the act of reintroducing domestic manufacturing to a country

5

What is offshoring

It is the relocation of a business process from one country to another

6

What is Outsourcing

It is to obtain a good service by contract from an outside supplier.

7

Reasons for reshoring

Greater certainty around delivery times
Minimising risk of supply chain disruption
Reducing the complexity of the supply chain
Making it easier to collaborate with home based suppliers
Greater certainty about quality of inputs

8

Reasons for offshoring

Lower manufacturing costs.
Access to potentially better skilled and higher quality supply.
To take advantage of free trade areas.
Make it easier to supply target international markets.

9

Reasons for outsourcing

Used for reducing costs
Meeting change in demand
They could be better out of it however less control

10

What is subcontracting

The production of a particular part of the product is undertaken by another firm.

11

Advantages of subcontracting

They might be better at the job
Produce more
Cope with demand

12

Disadvantages of subcontracting

Less control as you rely on a business
More expensive
Longer lead time