The Logistics Activity Mix refers to the various activities that are involved in the planning, execution, and control of a company’s physical flows of goods and services.
The Logistics Activity Mix is an important concept in SCM as it helps companies to understand the scope of their logistics operations and the various activities that are involved. By managing their logistics activities effectively, companies can improve their supply chain performance, reduce costs, and enhance customer satisfaction.
These activities can be divided into four categories:
- Inbound Logistics: This includes activities such as procurement, transportation, storage, and handling of raw materials and components as they enter the company’s facilities.
- Outbound Logistics: This involves the planning, execution, and control of the movement of finished goods from the company to the customer. Activities include shipping, transportation, and warehousing.
- Internal Logistics: This category includes all the activities that are necessary to move goods and materials within the company’s facilities, such as material handling, inventory management, and production scheduling.
- Reverse Logistics: This involves the management of returned goods, including their collection, transportation, and processing. Reverse logistics is an important aspect of SCM as it can help companies minimize waste and reduce the environmental impact of their operations.