Question

The efficiency of logistics is crucial in the success of location economy and lean production. Please provide an example of logistical problems in your work or life, its effect on the business operation, and the solution to the problem.

Answer 1

Answer- Logistics is mainly the complex activity which acts as an organised transporting chain that supplies goods to the cuatomers. For every business to succeed in todays world the logistics is an integral part of the business and cannot be overlooked. Location of economies refer to a place that firms choose of operate because of it’s conductive political, social, cultural, legal environment and thus proves best for condicting the business activities. Such a place helps in lowering the cost of production. Lean production refers to maintaining the level of production while minimizing the wastage in production activities.

A major problem that is faced in the logistic in my field of work is strike of drivers and the rising oil price. Due to rising oil or fuel prices the cost of logistics has increased and thus the profit level has decreased. Also due to strikes by the driver the process has eventually stopped. This has led to some serious losses in the logistic process.

To overcome such a problem one should have an interation with the drivers so that their situation can be understood and also to make them understand hoe the logistic department works. Secondly the rising feul prices cannot be controlled thus the optimal way is to use CNGinstead to petrol or diesel to save the cost of the fuel. Such measures if taken seeiously can help in solving the problem upto a much greater level.