A Logistical Order For Building A Team

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A Logistical Birth
Reggie Austin
Logistic Management TLMT341 1001
American Public University
Prof. Jeffrey Wendt
13 November 2014

A Logistical Birth The decisions that will be made will affect both the company’s present and its future as well (at least the following three to five years) (Balakrishnan, 2013). With that said I would do everything in my power to build a team which would consist of sales, marketing, operations, manufacturing, warehousing and a team member from higher management to ensure we meet goals the company as a whole will benefit from. Having all key employees involved is necessary to ensure the success of the network we are building. I would reorganize the logistics network to reduce several costs, production, purchasing, facilities, inventory holding, and transportation. I would attempt this by utilizing a centralized warehouse/complex. Were all phases of the logistical process can be on the same page.
When planning to utilize this centralized warehouse/complex, several things have to be taken into account fixed costs, storage costs and handling cost are all important factors in this process. Handling costs coincide with the utility and labor cost proportional to the warehouse’s yearly flow of goods and/or services. Fixed costs are not proportional to the quantity of material that passes through the facility: it has to do with capacity of the facility. Storage costs are calculated from the inventory of products held in that facility.

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