Logistics and Supply Chain Management is the practice of transportation of goods and services from one level to another using efficient methods. The costs of operation, the speed of delivery, movement of loads and the quality of goods and services is boosted by advancing the management structure of the supply chain. The findings in this paper give, in detail, the current market status in relation to Supply Chain Management and it also gives a concise description of the term ‘Risk Management’ and its advantages and its disadvantages. The research also imparts information obtained from an interview with two renowned veterans in the field. This report contains very important information and it mainly aims at understanding fully the concept of …show more content…
Keith Olivia, who was a British Logistician in 1982, was the one who first used the term Logistics and Supply Chain Management (Laseter, 2003). Logistics Management is part of Supply Chain Management that contributes to swift flow and storage of goods and services and transfer of important information from the level of production to the level of consumption so as to meet the consumers’ specifications according to Council of Supply Chain Management Professionals (CSCMP). The Supply Chain and aspects of logistics started emerging during the second world war when the German and United States Military were moving supplies to their soldiers but the computer advancements in the second half of the twentieth century offered a more effective platform for planning and thus provided a significant transition in the field Supply Chain and Logistics operations. Most importantly, this computer advancements in planning were being embraced by key players in the Supply Chain and Logistics industry since they were much better than the outdated methods used to transport goods prior to these improvements in technology. This is because good could now be transported over longer distances within a shorter period of …show more content…
An example of a Logistics and Supply Chain practitioner is Amazon. The individual who oversees transporting, assessing product performance, sales forecast of products and cooperation with commodity suppliers is the Supply Chain manager (logistician) since the Logistics and Supply Chain is involved in many activities that aid in the distribution of goods and services. Therefore, the majority of large corporations require efficient supply chain structures to conduct these activities with precision since they deal with a lot of goods and services that are of a wide variety. These large companies offer high salaries for people involved in logistics and the supply chain since they understand the crucial significance of this system to the prosperity of their
Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations along the supply chain operated independently. The objectives of these organizational divisions are always different and conflict with each other’s objectives. . Marketing puts a higher emphasis on high customer service and maximum sales dollars conflict with manufacturing and distribution goals. Many manufacturing operations are designed to maximize throughput and lower costs with little consideration for the impact on inventory levels and distribution capabilities. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. The result of these factors is that there is not a single, integrated plan for the organization---there were as many plans as businesses. Clearly, there is a need for a mechanism through which these different functions can be integrated together. Supply chain management is a strategy through which such an integration can be achieved.
Supply Chain Management goes back as far as 1898 where the word “logistics” appeared in an article (History of Logistics and Supply Chain Management ). Education in supply chain management started in 1919 as a degree in traffic and transportation. In 1963, the Council of Logistics Management (CLM) was started. At that time, the name of the CLM was the National Council of Physical Distribution Management. In 1982, the term, “Supply Chain Management” was coined by Allen and Hamilton Inc. and Keith Oliver of Booz. Third Party Logistics (3PL) and the first supply chain analysis happened in 1985. In 1996, 69 companies founded the Supply Chain Council. Logistics became a profession in 2000. In 2010, Supply Chain became known as a profession (History of Logistics and Supply Chain Management ). Today, supply chain management is an ever growing career.
In this regard, organizations have to hire experienced managers to supervise supply chains as well as making decisions concerning improvements. Mainstream supply chain management is likewise based on the foundation of collaboration with various suppliers that makes a business reliant on their partners (Glassman, 2011). Should a supplier be unsuccessful in delivering on their commitments, a company may run out of products as well as their lose customers. Such processes are complex enough through analysis on the domestic level. When company add the global logistics challenges as well as varying foreign regulations, the related risks of a breakdown
Kersten, W., & Bemeleit, B. (2006). Managing risks in supply chains: How to build reliable collaboration in logistics. Berlin: Erich Schmidt.
‘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...
“Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”
Lean manufacturing and just-in-time processing are great business strategies that can severely stress a supply chain. The supply chain and supply chain management is a critical operations management element for any major company to succeed and remain competitive in the global market. The supply chain is one of many pieces critical to maximizing value to the end customer and requires close management to minimize external impacts. If a company is relying on another company to supply the raw materials needed for their production line, then impacts to this other company could impact their supply chain. Careful risk management is needed to optimize performance. As a company expands into global markets and global suppliers, this risk and management challenge is multiplied. The global nature of the company could impact important activities such as transportation, funds transfers, suppliers, distributors, accounting and information sharing. Disruption to the supply chain can significantly reduce revenue, cut market share, inflate costs and threaten production. A major disruption would have obvious impacts to profit, but could have additional intangible impacts to the credibility of the company if products are not delivered on time.
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,
A supply chain is a network of facilities that procure raw materials, transform them into intermediate goods and then final products, and deliver the products to customers through a distribution system [1]. The basic objective of supply chain is to “optimize performance of the chain to add as much value as possible for the least cost possible.
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.
19. Sodhi, Sunil Chopra and ManMohan S. Managing Risk to Avoid Supply Chain Breakdown. MITSloan Management Review. [Online] October 15, 2004. [Cited: February 25, 2010.] http://sloanreview.mit.edu/the-magazine/articles/2004/fall/46109/managing-risk-to-avoid-supplychain-breakdown/.
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.
Supply chain management can be thought of based on the framework of a company 's information systems. For example, the video I reviewed this week is focused on UPS and how they manage information through their vast operations. From improving tracking ability, truck utilization to fundamental technology advancements to be utilized. The advantage of using cutting-edge processes lead to UPS 's ability to have a clear competitive advantage that is focused on efficiencies and customer satisfaction. The DIAD technology used to assist at the operational level for UPS provides a significant tool to which uses web-based technology for internal and external benefits. This tool will allow customers to better track packages and forecast cost to management being able to send a message to a driver 's truck to pick a critical package.
As an outcome of the thesis, my professional interest on the issue associated with the development of logistics sector has been enhanced. Furthermore, I am planning to keep an eye on the sector to enhance my knowledge which will benefit me and the organization I work for.