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scope and importance of logistics management
scope and importance of logistics management
scope and importance of logistics management
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(Walter, 2003), describes that supply chain management consists of chain of actions and companies that move materials through on their passage from initial suppliers to final customers. On that journey each company somehow is adding value to the product. Inbound logistics is that when materials move into the organization from the suppliers. It is also called inward logistics and when material move out to customers it is called outbound logistics or outward logistics and material management is when material move within the organization.
(Vrat, 1999), tells the need for successful management of supply chain in Indian situation and describes the problems and challenges faced in logistic system and explains strengths, weaknesses, opportunities and threats in each with specific force on the role of IT & communication in supply chain management. A number of explanations are indicated along with the need to look at supply chain from a overall system point of view and in design and operation of logistics system OR/MS techniques are to be used.
(Vijayaraghavan, 1999), describe about the rol...
Supply chain management is connected with the flow of products and information between supply chain members and organizations. New development in technologies enables organization to get correct information easily in their premises. Technologies used are helpful in coordinating the activities which manage the supply chain. By this the cost of information is decreased because now we have increasing rate of technologies. In an integrated supply chain where product or raw material and information flow in a bi-directional we as managers needs to understand that information technology is more than just computers.
...tbound Logistics: The outbound logistics include the movement of the finished goods from the manufacture to the retail stores or a warehousing facility for later use.
A supply chain is a system through which organizations deliver their products and services to their customers. The network begins with the basic ingredients to start the chain of supply, which are the suppliers that supply raw materials, ingredients, and so on. From there, it will transfer the supplies to the manufacturer who builds, assembles, converts, or furnishes a product. The chain now needs to get the product to the consumer by transporting the finished product from the manufacturer through a warehouse or distribution center. An example is that Wal-Mart has a nearby distribution center where products are delivered there and then split up to be delivered to a retail Wal-Mart. “Wal-Mart will take responsibility for breaking down larger loads and delivering the product to other Wal-Mart stores” (Ehring 1).
Supply chain management is basically refers to the fundamental supply chain analysis of the organization which predominantly describes functionalities from source to the delivery point. In this process of delivery, supply chain management framework divides in four categories: In Planning the products and suppliers evaluated and selected, Sourcing pull the information process including contracting, ordering and expediting, Moving is a physical process from suppliers to end user and Paying is the financial process including payment and performance measurement.
Logistic management encompasses all materials flows management, from the inflow of purchased materials into works (i.e. materials planning of raw materials components and other products, transport of materials from suppliers to works, receiving and inspection and storage of materials) materials flow through manufacturing processes (i.e. materials issues and materials handling) and material (flow to customers (physical distribution (Refer fig.1 for these relationships)
The scenario depicts Wonderful Widgets, a firm specializing in the manufacturing and distribution of a single product, widgets. The company is able to produce widgets using its current equipment, facility, layout and materials and is able to procure the product through various suppliers. Recently, it has been noted that operational costs have been rising each month.
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,
Materials and physical distributions looks at grouping logistics into either inbound or outbound. Moving and storing goods brought into the organization (inbound) will require different attention from moving and storing finished goods. Another approach to analyzing logistics systems is to view the various logistical areas as cost centers and then examining to find the lowest cost trade off you can get. The logistics channel considers the network of organizations involved in the flow of goods within the supply chain. Nodes are storage points, assembling facilities or manufacturing sites in an organization. Links shows the transportation networks that links these various nodes in the system. Organizations prefer to use the node and link approach of analysis because it simply illustrates the very complex logistical system. In addition, this system allows you to see where improvements can be made in the
By implementing smarter supply chains which is used in creating good relationship among the suppliers, using the best of the technology to increase visibility , enhances the agility by the use of lean technologies and can be used to proper decision making will enable the Indian automotive Industry to gain competitive advantage over
The transportation & logistics industry is a form of industry that keeps people and products on the move, it includes airlines and airports, shipping companies, logistics service providers and other transportation companies. That’s why it is considered the backbone of modern global supply chains. In a place like the Kingdom of Saudi Arabia that has diverse geography with a dry desert and great temperature extremes and a large area of about 2.1 million square km, a transportation & logistics industry is a necessity. Imagine you need to move from one city to another (of course it will be so hard to cross large areas of empty deserts) you have only two options to transfer from one to another city; the first option is to drive and the second option is to fly and ship your car via a car transport carrier. The harsh climate in Saudi Arabia makes people to prefer using the second option, this cause the market of transport market to enlarge. Albassami International Group is one of the biggest companies established to satisfy those needs. It is considered one of the biggest companies specialized in vehicle transportation in the Middle East. The philosophy of the company is to serve the needs of the clients over the span of thirty two years, throughout which they constantly had an eye to the future by evaluating the most appropriate ways in which to make transporting clients’ vehicles via the best and safest answer. They operate round the clock to serve clients at all times.
In logistic industry, they have been through lots of challenge in worldwide market. As the containerization of the global economy scopes, a phase of development and explanation, ports find themselves inserted in ever changing commercial environment where logistics is the forefront. Thus, this industry reaches a phase of maturity and rationalization due to the process of logistic on land.
Logistics is the process of strategically managing the procurement movement and storage of materials, parts and finished inventory (and the related information flows) through the organisation and its marketing channels in such a way that current and future profitability are maximised through the cost-effective fulfilment of orders. (Christopher 2005)
Logistics is the system of people and things that are involved in getting a product from the place where it is made to the person who buys it. Information system is an interactive structure of people, equipment, methods, and control, designed to create information flow in the required format for the user to make the decision to reduce the risk element. This paper aim is to designing Logistics Information System in theoretical underpinning and also discussed characteristics of Logistics Information System. In review of 40 papers related to Logistics Information System also discussed.
Inbound logistics is considering with products that are moving into a firm rather than away from it. As regards the inbounds activities are the activities that are involving in receiving, storing and disseminating inputs. Outbound logistics have the same activities but there are responsible for business output. Based on NIKE’s inbound logistics, there are many distribution centres all over the world in order to cover the delivery of NIKE’s products to stores more efficiently and successfully. Also, NIKE sells their products to retail accounts that are independent distributors and licensees, it sells their product at United States and at more than one hundred and sixty countries all over the world. Interestingly the biggest retail account that sells NIKE’s products is footlocker which accounts ten percent of NIKE’s sales all over the world. Another one distribution method that NIKE is using are the outlets stores which are known as NIKE factory
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.