Analyzing Costco Logistics

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Costco performs a number of tasks in each primary value chain activity. For inbound logistics Costco performs tasks relating to quality control, receiving shipments of products, controlling raw materials, and schedule supply shipments. An example is Costco choosing what products to receive and sell to their customers. Costco wants to sell quality goods, so it is inbound logistics jobs to choose what products to sell. They also help schedule when Costco stores should receive more shipments of products, and watching over the raw materials that go into the business. For operations, Costco's in charge of managing their store brand Kirkland Signature. Since they have domain over that brand, they are better able to control the caliber of their product. They also maintain the packaging assembly-line in order to accomplish the goal of having an efficient shipment arrangements, and low shrinkage rates. This way Costco can have low rates for quality goods. By keeping their operational costs low they can continue to pass the savings onto their customers. When it comes to outbound logistics Costco's task is delivery, invoicing, handling finished goods and orders. The way Costco handles all theses various tasks is mostly through assorted distribution and transporting methods. Costco can accomplish their outbound logistics by having a well thought out inventory method. This inventory method lets Costco markets hold up to two full weeks of supplies. Usually the supplies are

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