I had the privilege of working part-time at a Food4Less distribution center while stationed in Oakland CA and witnessed a very robust supply chain in action. Before looking into this logistical process it is important to know what is meant by the term, Logistics.
             Logistics can be defined as: The tasks involved in planning, implementing and controlling the physical flow of materials and final goods from points of origin to points of use to meat the needs of customers at a profit (Chase, Jacobs, Aquilano, 2004). In effect this means getting the correct product to the customer in the right place at the right time.
             When talking about the customer it is important to distinguish between the customer in the street i.e. general public, and the customer, the trader, who is buying the goods to sell on at any level. The term logistics applies to all customers but we are applying the term to the trader for the benefit of this paper.
             In recent years, focus upon logistics has become of paramount importance at all levels of trade and has become a major emphasis in large-scale retail, especially those with a high and fast turnover i.e. supermarkets. Large-scale retailers, such as Wal-Mart and Costco, have spent great deals of money centralizing stock distribution and implementing computerized inventory management systems, to try and gain a competitive market advantage.
             Centralized stock distribution involves using one as opposed to many warehouses to distribute stock for more efficient transportation. Inventory management systems automate many of the tasks involved in the control of stock and reordering. Without effective distribution and effective inventory management systems, other activities and functions carried out within the company may at best, fail to be optimized and, at worst, be rendered a waist of time. Therefore no money and (or) time saved in the long term. Leaders of these management systems include the likes of Wal-Mart, T...