-Catherine Fitzgerald-

Something that this article touches on is that the cost of logistics and transportation is growing, so companies need to be continuously analyzing this cost and optimizing it in terms of their overall business costs. To some extent, logistics and transportation costs are a fixed cost, because you have to send out your goods to certain locations within a certain time. However, with optimization models and techniques, like the ones we discussed in class, it is possible to bring this cost down. An important takeaway is that while these costs may not be as variable as others that they deal with, there is still a way to change them. A company should not assume that its current logistics model is the correct one. Any company, especially in today’s global market with rapid technological advancements, should look to continually improve its logistics network. This article notes customer satisfaction, labor costs, going green, faster processing and delivery, and failed deliveries to be factors that can teach a company how to vastly improve its logistics network. One that is relevant to me in particular is the going green factor. My group’s project is on environmental logistics, and not only does this logistics structure help save the environment, but most of the time it also helps save the business money that it would otherwise waste. One very popular environmental logistics model is closed-loop logistics, meaning that items and packaging of items that a company produces are reused and reinserted into the logistics cycle. Who doesn’t love saving money and the environment all at once?

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