Goodyear 1

Austen Goodyear
Mrs. DeBock
English 4 Honors
March 3, 2015
Logistics
Changes are variable and the world of both today and tomorrow have seen plenty of
them. The present economy is a hodgepodge of artificial constructs meant to gain leverage and
power, though as this stack of obligatory statutes grows in both size and potential many people
are left behind. How is it that the businesses of today have maintained the status quo? The
answer lies in the increasing relevance and complication of logistics in consanguinity to
business. Logistics is a broad term with multiple applications, specifically, business logistics
pertain to the management of a businesss resources from organization of goods to the sale of
said goods; knowledge and expertise of which is becoming more prevalent to survival in the
increasingly competitive stage of todays market.
To better analyze the importance of business logistics, an analytical approach on business
failure is necessary. The article Five Reasons 8 Out Of 10 Businesses Fail states, 8 out of 10
entrepreneurs who start businesses fail within the first 18 months, a whopping 80% crash and
burn (Wagner). The essential question here is, Why is it that so many businesses fail in modern
times? The answer is a lack of responsiveness to the growing complexity of our economic
system. Winston Churchill once said, To improve is to change, to be perfect is to change often.
This same standard applies to the operation of small business, as many fail to keep up. The

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article references the most common reasons for failure, Not really in touch with customers.
No real differentiation in market. Failure to communicate. Leadership breakdown.
Inability to nail a profitable business model. All of those reasons are categorized as business
logistics. Business owners enter the economy without the proper knowledge of its innerworkings and expect to succeed. A long time ago the simple and blunt approach to business
worked and even produced many of todays larger enterprises, but no longer is that the case.
Business logistics are apparently of utmost importance, but why is that so? The answer
lies in its methods and approach. In the article Cinderella in C-Suite it is stated, Logistics is
the leadership responsibility to design and manage systems to control movement and positioning
of raw materials, work-in-process, and finished inventories at the lowest total cost and highest
customer influence (Fawcett). Just understanding how to organize a business is no longer
enough. The misconception is that business logistics are generic and universally applicable, and
that is a deadly mistake for a business to make. The Who, What, When, Where, and How need to
be answered and in a method unique to an individuals business. The extent of logistics can even
severely affect the entire nation. The wealth of a nation is the product of its labor - The greatest
improvements in the product of labor result from the division of labor - The division of labor is
limited by the extent of the market (Fawcett). Accordingly, the extent of the market is deduced
by the cost and availability of products. The chain of cause and effect continues, but the extent of
the market and every factor henceforth directly pertains to business logistics. What is now a
small fault causing small business failure has the capacity to grow and, in turn, damage the
nations economy.
With every situation, good or bad, come those who seek to take advantage of said
situations. With the evolving issues of statistics plaguing small business, those businesses of a

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gradated state are offering a solution albeit the solution is temporary. The solution can provide an
unconventional long term survival method, but it requires complete dependence on a separate
entity. This solution is known as Third party logistics. A company with little backing in
logistical areas can trade for logistics organization and training from institutions such as LPKC.
A news article on LPKC states, "The Logistics Training Center is a chance to fulfill one of the
great promises of LPKC as a logistics employment hub (Roberts). A large business is
mobilizing logistics in a tradable commodity. Extensive knowledge of business logistics has
become thin enough in presence to allow for economic induction. LPKC was established to meet
the needs of current and future companies, providing the necessary knowledge of business
logistics (Roberts). There are many large companies that followed suit, and have started to
provide third party logistics. Just how important are these logistics if they have become
profitable in cultivation?
Logistics is a broad term with multiple applications, specifically, business logistics
pertain to the management of a businesss resources from organization of goods to the sale of
said goods; knowledge and expertise of which is becoming more prevalent to survival in the
increasingly competitive stage of todays market. Business logistics; what are they, why are they
important, what is it that they provide? People have strived for survival for centuries, and to
adapt to the new economic arena all businesses and entrepreneurs will have to change their
methods. If they fail, we fail; to do so then an economic depression could be right around the
corner.

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Works Cited
Wagner, Eric "Five Reasons 8 Out Of 10 Businesses Fail." Forbes. Forbes Magazine. Web. 18
Feb. 2015.
Fawcett, Stanley "Cinderella in the C-Suite: Conducting Influential Research to Advance the
Logistics and Supply Chain Disciplines." - Web. 18 Feb. 2015.
Roberts, Rob "Partners Will Create Training Center for Logistics Park Employers Kansas
City Business Journal." Widgets RSS. Robert. Web. 18 Feb. 2015.