if the company wants to reduce its costs and lower inventories

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Logistics

Logistics refers to a combination of processes associated with the management of products and services that flow between their original point and the point of consumption. As a rule, logistics is concerned with whether the existing movement of goods and services meets the requirements of customers and companies. For a Supply Chain Director of a large corporation (in the present scenario  the Middle East Division of Cut & Stitch), logistics management is associated with careful planning, implementation, control, and sharing of information related to the flow of goods and services between the points of origins and the points of consumption.

Because products for the Middle East Division of Cut & Stitch have been imported from manufacturers in Spain (womenswear) and the USA (menswear), which have been running at full capacity, the most appropriate solution was to find alternative sources and suppliers in Malaysia (womenswear) and India (menswear).

For ensuring a smooth and efficient flow of goods between the Middle East Division of Cut & Stitch and Malaysia and India, it is important for the Supply Chain Director to assess the following logistical issues:

Product movement

The logistics manager should analyze the way products move and whether the patterns of movement complement the corporate strategy. For instance

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