Logistics, Trade Administration and Supply Chain

Form Utility . It refers to the value added to goods through a manufacturing, production or assembling process. For example, form utility results when raw materials are combined in some predetermined manner to make a finished product. This is the case, for instance, when a bottling company adds together syrup, water and carbonation to make a soft drink. The simple process of adding the raw materials together to produce the soft drink represents a change in product form that adds value to the product. In today's economic environment, certain logistics activities can also provide form utility. For example, breaking bulk and product mixing, which typically take place at distribution centres, change a product's form by changing its shipment size and packaging characteristics. Thus, unpacking a pallet of breakfast cereal into individual customer size boxes form utility to the product. However, the two principal methods in which logistics adds value are in place and time utility

The definition of supply chain management (SCM) presented previously suggested a number of key factors and related characteristics that are the key to successful implementation.. Those key factors are inventory, cost, information, customer service and collaborative relationships. Each of these deserves some special consideration. Inventory Managing the flow and level of inventory is a central focus of SCM and a major performance metrric to gauge success. In simplistic terms, the inventory level must be sufficient to provide acceptable customer service but low enough to minimize SCM costs. To maintain the balance between supply of and demand for inventory stock, the supply chain requires integrated management to avoid duplication among members of the supply chain. Inventory visibility as it move through the supply chain is necessary to reduce or eliminate uncertainty, which eliminates safety stocks. This includes visibility of invotry being held in warehouses and other storage