DEFINITION OF LOGISTICS MANAGEMENT AS DEFINED BY THE COUNCIL OF LOGISTICS MANAGEMENT:¹

"The process of planning, implementing and controlling the efficient, cost effective flow and storage of raw materials, in -process inventory, finished goods, and related information from point-of-origin to point-of-consumption for the purpose of conforming to customer requirements."

Included within this definition are customer service, traffic and transportation, warehousing and storage, plant and warehouse site selection, inventory control, order processing, distribution communications, procurement, material handling, parts and service support, salvage and scrap disposal, packaging, return goods handling, and demand forecasting.

Effective management of the flow of goods from point-of-origin to point-of-consumption at the macro (society) level or the micro (firm) levels requires successfully planning, implementing, and controlling a multitude of logistics activities. The activities may involve raw materials (subassembles, manufactured parts, packing materials, basic commodities), in-process inventory (product partially completed and not yet ready for sale), and finished goods (completed products ready for sale to intermediate or final customers). Effective logistics management enhances the marketing effort of the firm (which can create differential advantage in the marketplace), the efficient movement of products to customers, and time and place utility of products. It can be treated, in accounting terms, as a proprietary asset of the company.

In today's corporate environment, to provide true logistic management, an extensive educated logistics staff is a luxury that not many companies can afford. Managerial characteristics critical to organizational success include effective corporate strategies, efficient operational systems and productive human resources. Out sourcing all or part of the logistics function is one of the strategies that many companies are using today.

Please accept the enclosed information as an introduction to Right Transportation Company and the services offered with background information included. An additional reason for tendering this information is to request the opportunity to discuss Right Transportation Company's participation in your organizations logistics program.

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¹ James R. Stock, Strategic Logistics Management, 2nd ed. (Homewood, Il.: Richard R. Irwin, 1987). P.7.