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have you ever wondered how Goods move
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seamlessly across the globe from raw
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materials in one continent to finished
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products in your hands this intricate
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process is what we call Logistics
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management it's the backbone of every
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business with a product to deliver
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Bridging the Gap between supply and
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demand efficiently so let's explore how
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Logistics management works in detail
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first introduction to Logistics
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management Logistics management is the
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process of efficiently overseeing the
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storage and movement of goods services
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and information it's about getting the
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right product to the right customer at
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the right time and place in the most
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coste effective way possible take Amazon
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for example Amazon's Logistics system is
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the backbone of its business from
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warehouses and transportation to last
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mile delivery Amazon ensures your order
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arrives quickly and reliably through a
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well-coordinated logistics Network
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second importance of logistics
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Management in today's global economy
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Logistics management is critical
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efficient Logistics can lower costs
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reduce delivery times and improve
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customer satisfaction all essential for
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staying competitive for example Apple's
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Logistics strategy plays a crucial role
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in its success Apple coordinates its
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suppliers across the world ensuring each
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component is ready and assembled at the
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right time all while minimizing shipping
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costs and maximizing speed to Market key
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points to include reduced operational
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costs improved customer satisfaction
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increased efficiency and scalability
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third basic functions of logistics
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management first
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Transportation transportation is about
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moving Goods efficiently from one place
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to another Logistics managers have to
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decide the best mode by air sea rail or
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Road based on factors like cost speed
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and reliability for example FedEx known
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for its Global delivery services
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exemplifies effective Transportation
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Logistics by operating a sophisticated
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Hub and spoke model and using data
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analytics to optimize Roots FedEx
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ensures timely and costeffective
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deliveries second warehousing and
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storage warehousing involves storing
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products until they're needed and
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managing this inventory carefully is key
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to avoiding stockouts or excess
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inventory for example Walmart has a
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network of warehouses across the US it
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uses Advanced warehouse management
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systems to track inventory optimize
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layout and quickly move Goods to retail
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locations as demand arises third
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Inventory management Inventory
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management is the process of balancing
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Supply with demand having too much
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inventory ties up Capital while too
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little risk stockouts and lost sales for
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example Zara has mastered Inventory
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management with its fast fashion model
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by producing smaller batches and quickly
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responding to Trends Zara keeps
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inventory levels low low and stock fresh
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minimizing waste and maximizing sales
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fourth order fulfillment and last mile
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delivery this step involves processing
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customer orders packaging goods and
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ensuring they arrive safely and on time
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last mile delivery the final journey of
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a product to the customer's doorstep is
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a major challenge for Logistics managers
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for example Domino's Pizza Domino's
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promises delivery within 30 minutes
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relying on a well-oiled logist IC System
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for efficient order fulfillment and last
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mile delivery they utilize real-time
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tracking and strategically placed
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locations to ensure timely service
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fourth types of logistics management
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first inbound Logistics inbound
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Logistics involves sourcing acquiring
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and transporting raw materials and goods
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to the business for production or resale
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for example Starbucks sources coffee
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beans from around the world managing
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inbound Logistics from the Farms to
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their roasting facilities to ensure
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quality and freshness second outbound
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Logistics outbound Logistics is about
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delivering finished goods to the End
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customer or retailer for example
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Coca-Cola once Coca-Cola produces its
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beverages outbound Logistics take over
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they distribute their products to
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grocery stores vending machines and
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restaurants around the globe third
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thirdparty Logistics you know 3pl some
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businesses Outsource Logistics tax C to
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specialized firms known as 3pl providers
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for greater efficiency and scalability
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for example Unilever and DHL Unilever
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partners with DHL to handle its
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warehousing and distribution allowing
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Unilever to focus on its Core Business
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while DHL optimizes the logistics if
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you're watching and finding this
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breakdown of logistics management
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helpful so far make sure to like the
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video share with others who might
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benefit And subscribe for more content
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content like this so fifth difference
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between supply chain and Logistics
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management while Logistics is a critical
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part of the supply chain they're not the
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same the supply chain encompasses all
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activities from raw material sourcing to
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delivering a finished product to the
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customer Logistics focuses on
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transporting storing and managing
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inventory within the supply chain think
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of the supply chain as the whole journey
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and Logistics as the roads that enable
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that Journey without Logistics the
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supply chain can't move forward if you
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want to learn more about Supply Chain
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management we've got a full video
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covering it find the link in the
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description below sixth Logistics value
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proposition the logistics value
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proposition is about balancing cost in
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service to deliver customer satisfaction
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businesses aim to minimize cost while
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maximizing efficiency in service levels
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Logistics value proposition focuses on
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reliability responsiveness and
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flexibility in meeting customer needs
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for example Amazon Prime's two-day
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delivery is an example of a logistics
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value proposition fast reliable service
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at a low cost to retain Customer Loyalty
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seventh goals and strategies in
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logistics management one cost reduction
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Logistics teams constantly look for ways
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to reduce costs without compromising
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quality for example Ikea designs flat
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packed Furniture to reduce
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Transportation costs maximizing space in
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each shipment two customer satisfaction
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with effective logistics companies can
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deliver on customer expectations for
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fast and accurate deliveries for example
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Domino's 30-minute delivery guarantee
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relies on an optimized Logistics system
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for quick fulfillment three operational
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efficiency efficient Logistics reduce
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delays save on resources and improve
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overall productivity for example Tesla's
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gigafactory integrates production and
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Logistics reducing the need for
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extensive warehousing and speeding up
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production timelines eighth substituting
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information for inventory instead of
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holding large inventories companies use
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data and real-time information to meet
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demand as it arises this strategy lowers
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holding costs and reduces stockouts for
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example Toyota's just in time Geor JT
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system is a great example of
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substituting information for inventory
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they use real-time data on demand to
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order parts only only when needed
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keeping inventory low while meeting
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production needs ninth reducing supply
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chain Partners to an effective number
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reducing supply chain Partners helps
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companies maintain stronger more
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reliable Partnerships which can improve
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efficiency and reduce risks for example
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Apple limits its suppliers to
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highquality Reliable Partners making its
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Logistics more manageable and reducing
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risk in its supply chain 10th pooling
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risk in logistics cooling risks means
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sharing resources and responsibilities
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among supply chain Partners to handle
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uncertainties for example Coca-Cola
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partners with local bottling companies
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worldwide this approach diversifies
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risks and allows Coca-Cola to maintain
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Supply stability across regions 11th
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flows of goods and information in
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logistics first Goods flow managing the
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physical movement of products for
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example Coca-Cola ensures a consistent
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flow from bottling plants to
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distribution centers then to retailers
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worldwide second information flow Data
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Tracking each step from order to
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delivery for example Walmart's retail
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link system allows suppliers to monitor
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inventory levels in real time ensuring
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shelves stay stocked third Financial
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flow transactions payments and invoicing
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between parties for example Amazon
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System integrates payment processing
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with inventory tracking ensuring all
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transactions are smooth 12th key
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challenges in logistics management first
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Rising Transportation costs fuel prices
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driver shortages and environmental
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regulations increase Transportation
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costs second supply chain disruptions
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unpredictable events like natural
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disasters trade conflicts or pandemics
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can disrupt the supply chain for example
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covid-19 pandemic the pandemic disrupted
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Logistics globally causing delays and
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shortages companies had to adapt quickly
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emphasizing resilience in logistics
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planning third complexity of last mile
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delivery with the rise of e-commerce
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last mile delivery is more important and
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more challenging than ever involving
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high costs and logistical difficulties
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13th Technology's role in modern
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Logistics management first Internet of
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Things iot devices allow for real-time
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tracking of goods improving transparency
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and efficiency for example Amazon uses
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RFID and warehouses to track items
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instantly reducing human error and
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ensuring accurate order
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fulfillment second artificial
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intelligence and machine learning AI can
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analyze data to optimize Roots manage
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inventory and predict demand patterns
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for example DHL uses AI to optimize
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routs and predict delays making
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Logistics more efficient and reliable
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blockchain for
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transparency blockchain offers a secure
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transparent record of each transaction
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in the supply chain for example IBM and
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mk's trade lens platform uses blockchain
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to track container movement reducing
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fraud and improving visibility across
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the supply chain fourth autonomous
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vehicles and drones these are
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transforming Delivery Systems
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potentially reducing labor costs and
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speeding up last mile delivery for
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example UPS is experimenting with drone
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deliveries in rural areas where
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traditional Logistics might be slower or
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costlier 14th the future of logistics
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management Logistics management is
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evolving rapidly with technology and
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globalization future Trends may include
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even more automation increased emphasis
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on sustainable practices and highly
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customized Logistics solutions for
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example alibaba's smart warehouses
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Alibaba smart warehouses use robots to
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sort and move packages showcasing the
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potential for fully automated Logistics
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in the near future to sum up Logistics
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management is more than just moving
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Goods it's about strategic planning
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leveraging technology and staying agile
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to keep up with Market demands whether
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you're ordering from a local store or
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tracking a package across the globe
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Logistics management ensures that
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everything arrives just when and where
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it's needed and if you're looking for a
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deeper dive I've linked a recommended
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book on this topic in the description
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below be sure to check it out thanks for
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for sticking around let us know in the
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comments which Logistics example
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fascinated you the most if you're
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watching this I have a great video on
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Inventory management that you'll find
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useful click here to watch it next see
12:11 - 12:15
you in the next video
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