Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
logistics management and its scope
discuss the economic impact of logistics
logistics management and its scope
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: logistics management and its scope
1 Introduction
1.1 Background and Significance
In the present day, logistics cost is considered to be an important factor showing potential and competency level in both organizational and national stage. Several of entrepreneurs face a high production cost problem which is a result from higher prices of oil and raw materials. In the meantime, exporters also encountered with the problem of Thai Baht currency appreciating trend. Therefore, entrepreneurs have to adapt and adjust themselves to survive in the highly competitive world, by means of increasing production efficiency and reducing production cost.
Logistics has played important role in the business competition and is one of important factors in the production cost increase. World Bank has made a survey on logistics performance (Logistics Performance Index: LPI) to measure the efficiency of logistics system of each country [1] as shown in Figure 1.
Figure 1 Comparison of Logistics Performance Index (LPI) of Some Asian Countries
From the table, the result showed that in 2012 Thailand was ranked 38th with score 3.18 out of total score 5.00 while neighbor countries in Southeast Asia such as Singapore ranked 1st (with score 4.13), Malaysia ranked 29th (with score 3.49), the Philippines ranked 52nd (with score 3.02), Vietnam ranked 53rd (with score 3.00). In this survey, other big nations in Asia such as China ranked 26nd (with score 3.52), Japan ranked 8th (with score 3.93), South Korea ranked 21st (with score 3.70), and India ranked 46th (with score 3.08). Besides, Thailand’s logistics cost is relatively high compared to other countries. In 2012, Thailand’s logistics cost to GDP was expected to reduce to 14.3% due to the massive flood in the 4th quarter 2011, while most of...
... middle of paper ...
...: Analysis of XYZ Company current situation. This section covers introduction of XYZ Company, analysis of logistics cost management of XYZ Company and the existing problems.
Chapter 4: Application of ABC method. This part analyses the logistics activities of XYZ companies, cost drivers, costs and expenses related to each activity, distribution of expenses into activities and calculation of cost per unit of each activity
Chapter 5: Logistics cost management solutions and suggestions. This section will summarize findings from the previous chapter and suggestions to the problems.
In order to complete those five chapters mentioned above, the researcher will explain the steps in conducting research as well as collecting data in order to analyse existing problems of the organization as shown in Figure 2 below:
Figure 2 Steps in Conducting Research
With different prices and services across the facilities, management is trying to identify opportunities to standardize costs and services across the business units. The goal of this case study is to update Deere and Company’s logistics by recommending solutions to cut logistics cost by 69 million over 3 years
Third party logistic providers are those who provide special services like warehousing, distributing, packing, and cross-docking. Third party logistics generally focusses on specific functions like shipment forwarding and distribution (Robey, 2014). The advantages of third party logistics are cost reduction, improved efficiency, service and flexibility. Outsourcing a third party logistics helps in sharing the risk and access to various resources that are not available at one’s own company. Third party logistics also helps in having a better cash flow to the company. On the other hand, it also has few disadvantages like losing control over the various special services and functions. This also results in loss of personal touch with the customers (Kumar,
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
Organisations that are having a hard time in their logistics functions because of increasing competition in the market, high customer service expectation set by a company’s cooperate strategies has shaped for the requirement of outsourced logistics service. Organisations decide to use 3pl so that they have a wider access to enter new and existing markets expansions, to assess market prospects for production an services, to reduce supply chain costs and have expertise to exploit new trends in developing technological advances in supply chain in supply chain management, the need to know whether their product has competitive advantage. Bolumole (2001).
How ever industry is developing at a quick pace and if India can cut down its logistics cost from 14% to 9% of GDP ,sparing to the tune of USD 50 billion will be acknowledged at the present GDP level, making Indian Goods more aggressive in worldwide business sector. Also, development in the logistics segment would suggest enhanced administration conveyance and clients' fulfillment prompting development of fare of Indian products and potential for formation of openings for work.
To study the various types of cost involved and their effect on the Total cost of VRL Logistics.
World Trade Magazine (December 2007, p. 14) states that countries with good shipping logistics tend to attract export oriented foreign direct investment- seen, along with trade, as a way to access knowledge and technology. In a Web-based survey conducted by a World Bank study in year 2007 with some 900 freight forwarders and express carriers in international logistics businesses in 100 countries, Singapore came out tops out of 150 countries in terms of speed in the clearance export shipments, the competency of custom brokers and corruption-free logistics environment, etc.
Due to the efficiency and the cost reduction that come along with the company’s own transport and logistics system, the revenue generation is expected to increase. On the other hand, the operating costs are expected to substantially reduce.
Working on this report was a pleasure to me, as well as gaining some real life lessons and knowing with better skill how logistics companies work in Lebanon. I, however, also did my best to complete the training program in the best way I know how. I am thankful for having the opportunity to submit my report to you.
Even with such pressing requirements, warehousing has seen very little investment in the country. Currently, spending in organized warehousing in India is only 9% of the total logistics spending (its 25% in the US). Logistics costs account for around 6-10% of total retail cost which is higher than the global average of 4-5%. Improvements in the supply chain and logistics can bridge this gap. An integrated supply chain (including the cold supply chain) can save more than ₨ 300 Billion for the country. This along with saving perishable horticulture produce should be an incentive to develop logistics infrastructure in a country like India plagued with inflation and
Logistics adds economic value through form utility, time utility, place utility, quantity utility and possession utility. Form utility is basically the value that is added to product through the process
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
Simultaneously, the logistics industry attracts highly educated graduates entering this industry and its quality will be improved. The logistics industry is one of four economic pillars in Hong Kong which represents 21% of Hong Kong total employment. As the logistics industry is prosperous, many high educated and skilled labors are attracted by career opportunities. From figure 15, we can see clearly that almost 70% interviewees think that career opportunity is the most important factor to attract people to enter logistics industry. Also, according to figure 14, 90% of interviewees agree the prospect of logistics industry in Hong Kong is optimistic. Those reveal that employees are confident to work at local logistics industry and believe that they can have career opportunities to develop their talents in local logistics industry.
Logistics management is part of all levels of planning and execution -- strategic, operational and tactical. It is an integrating function, which coordinates all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology. The complexity of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software. The optimization of the use of resources is a common objective in all logistics
Logistics has been defined as that type of business planning that focuses its operations in material management, flow of information and capital and efficient service delivery in an organization. Some of the important components involved in the process of logistics include complex information, control systems, and effective communication channels that will make the whole process simple and efficient. A warehouse is also an important part of the logistics system as it plays several roles that are important to both the traders and the target market. Thus, this paper will define a warehouse, its roles in the logistics system, the different types of warehouses and why businesses may prefer one warehouse to the other. Finally, the