1.0 Introduction
Since logistics advanced from 1950s, as the trend of nationalization and globalization in recent decades, the importance of logistics management has be expanded in the different area of industries. Logistic is a part of the supply chain management which planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from the initial production to final decision of consumption for the purpose of fulfilling the customer requirements in the market. According to Bowersox and Closs, they stated that the principal responsibilities of logistic management includes the design and administration of systems which control the flow of materials, work in process and finished
…show more content…
It is main operations where companies can provide tailored services for their customers in order to gain competitive advantage. The WMS is a database driven computer application which used to improve the efficiency of the warehouse and ensure the accuracy of inventory by recording warehouse transactions. It aims to control the movement and storage of raw materials within a warehouse and process the associated transactions where including shipping, receiving, put-away and picking the materials or finished goods. It used to improve the efficiency of the warehouse maintain accurate inventory by recording warehouse transactions (Ramaa.A, 2012) . This paper has highlighted the findings of the study carried out to evaluate performance levels of the WMS and enhance productivity of the manual warehouses by developing a WMS framework and cost benefit analysis. There was a metrics for measuring the performances of warehouse based on order fulfillment, inventory management and warehouse productivity which may use to audit warehouse performance and assess to WMS potential. From results of the case study showed, the cycle time of the process, non-value added time, manpower required has reduced with the WMS. Besides, with the WMS, the time scheduling for the products has become possible, and this has reduced the waiting time of the suppliers. In addition, the warehouse will has prior …show more content…
The outsourcing decisions may change the operation strategy of the firm sing in the manufacturing and service sections. A firm choose to outsource the business activities not only just due to lower the operating costs, it is possible it due to lack of the technology capability, lack of expertise at the particular area, seek for the better service quality vendor, lack of capacity for expansion and lack of internal capacity in meeting production ramp demand. This paper has found out the four independent variables to measure whether the independent variable which is outsourcing decision will bring effects to each of the variables. As the result, outsourcing will reduce the operating costs by reduce the in-house department, overhead and fixed cost, and capital investment. Besides, outsourcing the business activities may help the organization to explore the new market segment and gaining the new customers which may boost up the profitability. A firm which outsource their department to other countries may gain access to the world class capability since they may find a partner who are expert in that particular area. It is not only gain access to the new technological knowledge, it is even help the firm to improve competitive advantages to compete with
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
The company can make use of SAP BW/4HANA warehouse in order to perform any analytical operations on real time data. Using this data warehouse the company can generate reports which will be helpful: • For the business managers to know more about their product manufacturing and distribution costs. These reports will provide them with necessary information so that they can build new ways to reduce overall
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Globalization along with the rise of information technologies, have led to changes in the global business arena. Outsourcing is when a business hires another entity to perform their functions. It can be on-shore (in the same country) and off-shore (in other country), but this paper will be based on off-shoring since the Global aspect has to be taken in perspective. First off the emergence of outsourcing will be discussed followed by the reasons and scope of outsourcing. Then the paper will focus on the benefits and drawbacks of outsourcing.
One of the most popular reasons jobs are outsourced is for cost savings. A company can benefit from saving on the cost of labor and on U.S. taxes. Businesses also benefit in receiving top talent for a lower cost. Out sourcing has made the talent pool a global one, providing access to people with specialized skills. This can result into efficient, fast results, expediting the supply chain process as stated by Rajesh Rao in the “The Other Side of Outsourcing.”
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
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.
Outsourcing is a technique for companies to reassign specific responsibilities to external entities. There are several motivations for outsourcing including organizational, improvement, cost, and revenue advantages (Ghodeswar & Vaidyanathan, 2008).
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.
Logistics is the process of effectively and efficiently managing the movement and storage of information, products, and services between supply chain players with the aim of meeting the needs and requirements of customers. Logistics is important in private companies because it allows companies to meet the requirements of customers and in turn gain profits, and stay competitive. Logistics is important to public companies because it allows them to successfully meet its social objectives and even during successfully conduct international trade.
Based on my research, one of the challenges faced by logistic company is capacity forecast. Capacity forecast is a general’s capacity theory that we should know it about warehousing. Warehousing it is very important in this industry where they play an important role to store the goods before its loading and unloading once it arrive at the destination point. The requirement for this phase is its transportation. As an example, the used of mode, carrier and protection class. Furthermore, capacity forecast has its own benefits in logistic. Which is, this solution ensure the logistic, manufacturing and supply chain to work together to the same plan (Byrne, 2011). The logistic industry had faced is, widespread their promotion and to work efficiently on land.
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
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.
Aligning Warehouse Operational objectives/visions to SPP business objectives/visions “to maximize the effective use of warehousing resources whilst satisfying customers’ requirements and expectations”.