Market-Logistics Decisions
The firm must make four major decisions about its market logistics: How should we handle orders (order processing)? Where should we locate our stock (warehousing)? How much stock should we hold (inventory)? and How should we ship goods (transportation)?
Order Processing
Most companies are trying to shorten the order-to-payment cycle—that is, the time between an order’s receipt, delivery, and payment. This cycle has many steps, including order transmission by the salesperson, order entry and customer credit check, inventory and production scheduling, order and invoice shipment, and receipt of payment. The longer this cycle takes, the lower the customer’s satisfaction and the lower the company’s profits.
Warehousing ...
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