What is the Big Issue in Logistics?

Question

I have this question from school. i am supposed to make a poster on what the big issue in logistics is.. but thing is that i can't find information on it anywhere. please do help thanks any opinion would be appreciated.

Answer 1

What makes you think there's only one big issue in logistics?  That doesn't make much sense to me.

I think you're supposed to pick an issue and then make your poster accordingly.

Answer 2

As a logistics professional, I can tell you one of the constant challenges we face is managing product flow.  My job is to manage fuels inventories at over 700 gasoline stations across the country.  In successfully completing my job, I have to ensure that I don't send the fuel to the wrong stations, so that when a station needs fuel, it's available to be delivered.  If I send too much fuel to a high volume station, I land up not having enough to cover the little stations that don't move as much product and vice versa.  If I fill up all the little stations, I could land up not having enough to keep the big guys in product.

I also need to work with our supply folks to be sure there's room at the terminal for the fuel that is being delivered from the refinery via pipeline.  It's imperative that the pipeline never stop flowing, because if it stops, deliveries can't be made on time and it costs thousands of dollars (which my company would have to pay) to restart the product flow.  If the terminal doesn't have enough room for all the product scheduled to arrive, I need to find space at my stations for all the excess fuel and get it moved ASAP.

One of the biggest aspects of my job is cost control.  Deliveries to the stations are made by tanker truck.  We contract trucking companies to make our deliveries for us.  We guarantee the companies a minimum number of hours in order to get a better rate, so it's my job to make sure I schedule work on all these trucks we're paying (whether we use them or not).  I have to decide whether to add additional trucks when it gets busy or postpone deliveries to a future shift, when work may not be so busy, at the risk of running out a station.  If I add trucks, they cost more than the regular turcks, because we don't have contracts for them, so I have to be careful to not blow our budget on extra equipment.

Logistics is about getting the right product to the right place at the right time and price.  Balancing all these needs is what we do on a daily basis.  I'm currently interviewing for another position in my company which will require me to make sure that the product we purchase is sent to the correct distribution centers to supply all our customer's needs.  If I send too much to one center, another may not be able to ship orders.  I also need to make sure the cost of shipping these items is kept to a minimum by shipping full truckloads and minimizing distance traveled.

Answer 3

gas prices has got to be a huge issue in logistics