Leaner Business through Logistics
Topic Marketing Channels, Distribution, and Supply Chain Management
Key Words Logistics, radio frequency identification (RFID), distribution channel
InfoTrac Reference A119268777
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News Story 

Apparel companies looking for new ways to drive growth are rethinking the role of logistics in increasing profitability. Companies like Wal-Mart have taught the world how better operations can revolutionize business, and logistics executives are now pursuing operational excellence like never before.

Indeed, focus on speeding product to market through more efficient sourcing processes and better management of logistics requirements can be a major contributing factor to a healthy bottom line. As such, many apparel companies are increasing their capabilities in these areas by focusing on solutions that provide greater visibility into the apparel supply chain, allowing all parties involved to track apparel-- everything from raw materials, fabrics, trims and findings to the completed garment--from start to finish.

The responsibility for implementing state-of-the-art logistics systems falls largely to tech departments. Key points that should be top of mind for IT executives include the need to provide sourcing executives and their partners with access to a global IT infrastructure where they can access real-time information about apparel specifications, bids, reporting tools, shipment tracking and legal documentation. Radio frequency identification (RFID) also will play a major role in many successful logistics operations going forward.

(September, 2004)

Questions
1.

What is logistics? How can improved logistics increase the overall profitability of a business?

2. According to the article, radio frequency identification (RFID) will play a major role in improving logistics within the apparel industry. What is RFID technology, and how can it help a company create products and deliver them to consumers more efficiently?
Source Jordan K. Speer, "The logistics low-down," Apparel, July 2004 v45 i11 p6(1)
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