Explain and discuss the importance of logistics to small businesses.

Learning Goal: I’m working on a management discussion question and need an explanation and answer to help me learn.

Explain and discuss the importance of logistics to small businesses.

Discussion Instructions (Initial Post is Require before “Viewing” Peer Posts): You are required to submit a substantial response. A substantial response is one that stays on topic and fully addresses the assignment in a clear, concise, and meaningful manner. Substantial Content refers to providing relevant content toward the actual topic of the discussions. This includes quality input, questions and information in your discussion posts and responses to peers.

The deliverable length of initial posting must be at least 150 words. After the initial posting, students are required to respond to at least two (2) peers responses. Peer responses must be at least 50 words for each response, in order to receive full credit. Discussions must be the students original thoughts based on the topics from the “Open Educational Resource” (OER) Course Textbook and/or other referenced sources. Direct quotes from references must be less than 10 words. Please review postings for sentence structure, grammar and punctuation errors.

Plagiarized discussions will result in a “0” for the submission of this assignment.

Late submissions are not accepted for discussions.

All assignment(s) derive from the OER Textbook. For academic purposes, at least 1 APA formatted reference is required pertaining to the topic(s).

Peer responses

1)Logistics are essentially the nuts and bolts of the business. Without having the right logistics solution for the business, storing and getting the product out to customers would be very difficult. Logistics is the activities involved in the physical flow and storage of materials and getting the semi-finished and finished goods to the customers efficiently and cost effectively (Lueder, 2012). It is important to have an organized plan. This can sometimes mean logistics management for each primary function, such as transportation, warehousing, inventory control, and order processing.

A lack thereof can negatively affect the productivity and profitability of the business. It is possible that a poor logistics plan can cause loss of inventory and directly affect the company’s delivery timelines. Deciding on the right logistics solution can be the difference that will put the company ahead of its competition (Lueder, 2012). Ultimately, it can save the business money and increase customer satisfaction.

2)When looking at the nature of a small business customer satisfaction is often the number one priority. Being forced to rely on word of mouth and brand image to stand out from large corporations. With a poor logistical department or partner things and quickly sour that reputation as the timeliness of a product is in direct correlation with that reputation. A company can have just one hiccup which causes delays with multiple companies involved with the process since most small businesses rely on other companies for inventory to parts. If a small business was to invest money into a department or outsource the logistics they would have to follow closely and manage any problem in a concise way. In rare instances, companies have regressed hiring poor logistical departments and leading to the eventual bankruptcy of businesses. The small business is so dependent on the idea a customer has of it and if this image or idea is damaged it makes it increasingly hard to stand out from mainstream opponents.