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Importance of logistics strategy
Importance of logistics strategy
Importanceof logistics management
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Transportation is one of the largest industries in the world. It is the most costly and time consuming of the supply chain. Transportation refers to the movement of products and raw materials from one destination to another. This process begins from the supply chain to the shipping of the finished product to the consumer. For we know that products are rarely produced in the same location. We as people depend on transportation because it moves goods and people from one place to another.
Transportation is a key element in the logistic chain. It joins together those components that are considered to be separated. In order for transportation and logistics to work together successfully, there must be good management between them. It plays a major role in connecting it all together. What is logistics? Logistics is the management of freights, warehousing of materials, production and inventory. Logistics and the supply chain work hand in hand. Supply chain management is defined as” a continuously evolving management philosophy that seeks to unify the collective productive competencies and resources of the business functions found both within the enterprise and outside in the firm’s allied business partners located along intersecting supply channels into highly competitive, customer-enriching supply system focused on developing innovative solutions and synchronizing the flow of marketplace products, services, and information to create unique, individualized sources of customer value”( Shehadeh, 2009).
According to the textbook, the goal of logistics is to support procurement, manufacturing, and customer accommodation supply chain operational requirements. Logistics is the leadership responsibility to design and administer systems to cont...
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Merriam-Webster Dictionary (2014). Merriam-Webster online dictionary. Retrieved from
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Pieplow, T., Calhoun, S., &Daniel, D. (2012). Introduction to Logistics and Supply Chain Management. Athens, AL: Athens University
Reynolds-Feighan, A. J. (2001). Air freight logistics. In A.M. Brewer, K.J. Button and D.A. Hensher (Eds.). United Kingdom: Elsevier Science Ltd.
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Manhasset, 16-19 Hyland, T. (2002, Oct.). Logistics is not supply chain management. Transportation & Distribution. Cleveland, 32-35. Sapient: Modernizing Military Logistics: USMC case study, (n.d.)
In the decade of 1980’s three major changes in supply chain management occurs. First, manufacturers focused on lower operating cost from reengineering cost structures. Second, they improve the customer service rather than costs reduction. Third, to improve the internal integration of logistics within the companies.
‘Supply chain management integrates supply and demand management within and across companies. It encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, thir- party service providers, and customers’. (Web: Council for Supply Chain Management Pr...
Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost.
Transport represents one of the most important human activities worldwide. It is an indispensable component of the economy and plays a major role in spatial relations between locations. Transport creates valuable links between regions and economic activities, between people and the rest of the world. Transport is a multi-dimensional activity whose importance is historical, social, environmental, political, and economical. (Rodrigueetal, 2006).
Supply chain management has been defined as that process that involves the management of information, materials, and all the finances that are handled within and across the entire supply chain process (Christopher, 2016). The management is usually done through out the entire supply chain management from that moment when the suppliers are involved through all the manufacturing activities, different distribution activities, and the way that the products are served to the final product consumer (Turban, et al., 2002). The process also includes all the activities that different organizations offers to their customers as after sale services for purposes perfecting their services and products towards their highly valued customers (Christopher,
Much of our modern day information about the Maritime economy has been primarily based on the historical happenings in the global economy. As world become ever more globalized and interlinked, maritime shipping is experiencing challenges as well as enjoying greater business opportunities. Maritime shipping is mainly the primary means of transporting parts and the finished goods around the world. Because shipping is such an old industry, with a history of continuous change, sometimes gradual and occasionally catastrophe, Time and again we find that shipping and trade will slipway from the economy and then magical reappear in some new voyages no other industry has played such a central part in the economic voyages over thousands of years. The airline industry is shipping’s closest counterpart and it has barely 60 years of economic history. It plays a fundamental role in the economic development and trade of countries. In essence, economic development, trade and transport are mutually supportive. Ocean liner shipping is a regularly scheduled service on established ocean routes between countries or areas. Liners carry primarily manufactured goods that are relatively high in value. Although liners account for less than 53% of all freight, they amount for more than 93% of U.S. freight. (http://www.wto.org) A striking feature of the shipping business to outsiders is the different character of the companies in different parts of the industry. Liner companies and bulk shipping companies belong to the same industry, but they seem to have little else in common. There are several different groups of companies involved in the transport chain, some directly and others indirectly. The direct players are the cargo owners, often the p...
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
As an Industrial Engineer with more than 15 years of work experience, I choose Supply Chain Management (SCM) because I believe that logistics is the most dynamic, vibrant, challenging, technology driven area, and the future of any big national and international companies. It will give me the opportunity to know behind the scene of improving the companies’ performance by using SCM tools. If I work in this field, I can get my answers and a chance to work in the market of raw material, purchasing, production, distribution, logistics, and final goods. After finishing two semesters in the College of Business at University of Houston Downtown (UHD), I am really passionate about it and want to gain my knowledge in the logistics sector, learn new techniques and skills, and seek new opportunities.
The transport sector plays a pivotal role in enhancing the global competitiveness of an economy and as well as in contributing to the efficient functioning of the supply chain, domestically. Efficient transport and telecommunication network reduces production and transaction cost in poor regions which serves as stimulus for domestic commerce. There is a positive correlation between global trade competitiveness and an efficient transport sector. Growing economic interdependence through an increasing volume and variety of cross-border transactions has resulted in increasing the importance of the transport sector. The Transport sector has the ability to potentially raise the economic growth of developing regions and lead to a shift of production
The logistics and transportation industries are involved in the physical movement of persons and goods. logistics specifically refers to the transportation of good, material and/or products. Sometimes in doing so it may include management of freight, storage, inventory and packing. Logistics and transportation encompass a wide range of activities and it also plays a vital role in the growth of the philippine economy. A thought out extreme competition and grows in global trade gives higher value of tr service sector where transportation, communication and storage is a high component. In 2014, the Service sectors accounted for PHP 6.3 Billion a total of (63.98%) of the real Gross Domestic Product (GDP)
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Logistics is the designing and managing of a system in order to control the flow of material throughout a corporation. This is a very important part of an international company because of geographical barriers. Logistics of an international company includes movement of raw materials, coordinating flows into and out of different countries, choices of transportation, cost of the transportation, packaging the product for shipment, storing the product, and managing the entire process. The concept of logistics is fairly new in the business world. The theoretical development was not used until 1966. Since then, many business practices have evolved and logistics currently costs between 10 and 25 percent of the total cost of an international purchase.
Transportation is vital to a nation's economy. Reducing the costs of transporting natural resources to production sites and moving finished goods to markets is one of the key factors in economic competition. The transportation industry is the largest industry in the world. It includes the manufacture and distribution of vehicles, the production and distribution of fuel, and the provision of transportation services. In the 1990s, approximately 11 percent of the U.S. gross domestic product and an estimated 10 percent of all jobs in the United States were related to the transportation industry.
This paper aims at providing more information concerning the different modes of transport, their characteristics and also the comparison of these modes with one another in an effort to establish the best mode of transport for specific commodities. The paper also takes into consideration the various factors affecting the transport sector; such as cost of transportation, flexibility, time factor and reliability. Transport refers to the process that enables physical movement of goods and people from on area to another. Transport is very important in the sense that it ensures availability of raw materials to manufactures, producers and also to construction sites (Clifford Winston,?2010). It makes sure that goods are available