Customers, site selection and logistics planning

Customers, site selection and logistics planning
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Managing the movement of goods and flow of services and their storage is an important aspect of businesses which affects the supply chain and availability of goods to customers. In looking at logistical planning, the selection of site is paramount as this may affect the supply chain. But before there is site location it is paramount for organizations to factor in the customers in logistics operations. Thus, organizations typically research on the market requirements of the customers and ensure that they meet their needs, while also ensuring that the delivery of goods and services is at the right price, condition and location (Rushton, 2010).
The location of consumers is vital for Hewlett- Packard, as the reliance on a buy/ sell model ensures that the delivery of products is faster (Industry Week, 2006). Essentially, this system works whereby the company buys some components from supplies and then sells directly to consumers. The company merely deals with the inventory, but does not own the goods. Another strategy applicable to the company is the use of e sourcing whereby, and HP also compares the cost differentials between numerous manufacturers and settles on the one that has the lowest prices (Industry Week, 2006).
Even though, businesses have changed their logistics planning strategies because of globalization and better technology, proximity to markets is still a top priority issue that determines the location of organizations. Besides, the need to minimize transportation costs may also be influential in determining location, but the customer is the ultimate guide in location decisions. Proximity to market may connote different things in logistical planning of the electronics and computer market. Firstly, it could mean that there is physical proximity to the consumer and at times other manufactures of finished products. Secondly, it could mean proximity to dis...