1. The view that logistics is just trucking and warehousing is wrong because these are only two of
the key decision areas that make up logistics. Logistics is the part of the supply chain that plans,
implements, and controls the efficient, effective flows and storage of goods and services between
2. It is a false claim that warehousing is inconsistent with efforts to minimize inventory levels
through the supply chain. When warehousing is leveraged correctly, such as inventory pooling, a
3. A firm can be a part of the logistics systems industry without touching the product. Examples
4. Landed costs become more important for firms that participate in international logistics because
these firms will incur multiple types of costs throughout their supply chain. Landed costs include
5. Why is it important for firms to have a logistics strategy? Consider the wide range of business
6. Logistics can be an area of core competency for a company. A prime example is that of UPS.
UPS’s business slogan is “We love Logistics,” and their business strategy is to be the one-stop
