ANALYSIS OF LOGISTICS IN SUPPLY CHAIN MANAGEMENT What is Logistics 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) Key Logistics activities Inbound logistics involves material management in the supply chain and includes • Procurement; where raw materials are acquired. • Transportation; raw materials are sent for production. • Production; at this point, processing of goods take place. Outbound logistics are the physical distribution of goods …show more content…
Logistics in Smokehouse Restaurant In the supply chain, inventory planning and stock management develop a flow-oriented concept to the operations of the restaurant. In acquiring raw materials such as fruits, vegetables and meats, are bought with standard quality and are met with regulatory requirements from reputable suppliers. Storage is properly planned where the stock is rotated, items are labelled, foods are protected from contamination and biological hazards, and are stored at appropriate temperature controls; maintaining product quality as influences production and sales. In the manufacturing stage, a variety of options are provided, catering to the demands and requirements of the customers. If managed properly, it reduces wastage and increases the availability of unused products. The customer is the final entity in the supply chain of the restaurant. The sustainability of the chain depends on the actual menu, affiliated with price and exceptional service met by customer requirements. Collaboration within the logistic network encourages growth and efficiency in the supply chain. Competitive Advantages of logistics in …show more content…
Constant improvement in the performance of each member achieves the goals within the supply chain. ADOPTION OF JUST-IN-TIME INVENTORY MANAGEMENT Inventory management is the process of efficiently managing the constant flow of products leaving or entering the warehouse. It is an element of supply chain management and involves controlling and overseeing of orders and storage of stock. Approaches to managing inventory includes: • Economic Order Quantity model • ABC System • Just-In-Time • Periodic Inventory Review • Continuous Inventory Review Smokehouse restaurant uses the Just-In-Time system as it provides cost reduction, improved quality and customer service. The strategy allows staff to develop and demonstrate kitchen techniques while keeping track of stock and maintaining efficiency while creating a balance between meeting demands and purchasing
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Inventory or stock refers to the goods and materials that a business keep for the final purpose of resale or manufacturing. Inventory is a major part of the supply chains. In the manufacturers, inventory includes raw materials used to make and collect products. In resellers, it includes products that acquire to resell to customers. In either case, we need inventory to earn revenue. There are five basic reasons for keeping an inventory, which is Time, Seasonal Demand, Uncertainty, Economies of scale, and Appreciation in Value. Inventory proportionality is the goal of demand-driven inventory management.
A supply chain provides the means by which a company brings its products or services to the market. For a supply chain to be effective, all of the involved parties must be aligned to common goals and the company’s supply chain strategy. For the value of the supply chain to be maximized and cost savings realized, a company supply chain strategy must be executed efficiently. Many parts of the supply chain contribute to help the franchise system achieve quality goals. It can be achieved by offering uniform, high quality products and services to its customers.
Inventory is important to the supply chain, yet it is not universally well understood. It is considered as an economic asset to a non-income-producing use of capital funds. It is characterized, both positively and negatively in the aforesaid sentence. Only when considered in light of all quality, client service and economic factors—from the viewpoints of purchasing, manufacturing, sales and finance—does the whole picture of inventory become clear. Effective inventory management is essential to supply chain competitiveness.
The importance of planning and designing procedures for a food and beverage establishment is essential for a successful establishment. Procedures are the cautions taken to ensure that the operation is running effectively and efficiently to meet demands of the customer, with an effective and efficient operation it may reduce the complication of keeping customer relationships intact with the business. Making good decisions about operational procedures is an important characteristics to ensure that all processes and steps are taken to a degree of high quality standards and are delivered so it meets the requirements of a customer or goals set by the organization. Business that have effective practices can produce products and services that meets a high quality standards that can be delivered as the establishment inputs an effective effort into procedures such as supplies, customer orders, and payment that enable the organization to grow. Doyle, Bell and Smith (2010) examine that procedures was needed for an effective operation, for example procedures can resolve problems like poor customer servicing can be resolved by putting 100% effort of service to all customer no matter if it large or small, so that all customer are treated equally also on other hands like issues such as inventory efficiency, can be arranged so that the establishment is aware of stock control procedures and structures so that there is enough stock for sales. An establishment with a solid control on procedures allows effective and efficient operations bu...
Supply chain would not be efficient and receptive if inventory wasn't been able properly. Inventory management is definitely a way of carrying materials from raw components to the final customer, thus managing the movements and flow throughout the supply chain. Without inventory managing, supply chain movement would certainly not in existent. Every method must be managed in line with the fulfillment in the ultimate priority that is the fact that consumer pleasure. Supply chain carries investment to fulfill uncertainties and mismatch regarding demand and supply. Smart management of the supply chain is gained by integrating the strategies business processes of the partners within a supply chain in order to make certain the flow and storage can be coordinated as this can be completed within the functional area of products on hand management as well. In summarize, effective supply chain supervision is performed by having a good inventory management. The two ought to end up being coordinated with each various other especially in monitoring the flow of inventory within just the supply chain. Any mistakes with the inventory guidelines would consistently influence the supply chain that's why investment management and supply chain administration processes should be included that may result to the success of a company if enforced successfully and effectively. Also, it's significant that managers should consider to take actions in lowering the quantity of inventory required in purchase to decrease cost expected thus raise the responsiveness in the supply chain. If inventory can be managed successfully then presently there would most likely a good management of supply chain as well. They're connected with each other with one another and if one of these doesn't fit with the other, after that it'd certainly lead to the
The system should records all information of raw material, including the name, purchase date, opened date and expire date, to lower the turn over rate and the unnecessary waste of raw material.
Supply chain management is the flow system into the organisation. There are two flows within the supply chain, physical and information flow. The physical flows in the opposite direction information flow. Supply chain management involves aspects of inventory, distribution, purchasing and supply. (Wild, 2001)
Customer order and decoupling point are what sets the inventory position in the production and tell them how they operate.
Most of us think of logistics as a one-way street. Products are manufactured, packaged, stored in a warehouse, sold, and then shipped off to the customer ... end of story. Yet for many logistics managers today, that's not the end of the story. In addition to managing outbound goods, they also are responsible for reverse logistics--the flow of returned goods and packaging, including customer service and final disposition of returned items.
Service Logistics :- The obtaining, planning and administration of the offices/resources, faculty and materials to bolster and support an administration operation
First, they get their own system to track down their inventory. If they recognize the deficiency in its inventory on their system, they can easily find out how to manage inventory to catch customer’s demands. It lessens the risk of occurrences of their out-of-stock events. Their system also includes supermarket’s supply chain. It does not focus on just inventory, but it can show managers that their all operations are working well by Wegmans’s strategy. Managers always check out its own supply chain and producing department. For example, they can log all their food’s record by mobile computing tablets. Manufacturers and date of manufacture are registered by all records associated with grocery. It can not only reduce staff requirements and expenses, but also gain
Inventory management involves planning, coordinating, and controlling the acquisition, storage, handling, movement, distribution, and possible sale of raw materials, component parts and subassemblies, supplies and tools, replacement parts, and other assets that are needed to meet customer wants and needs (Collier & Evans, 2009). In order for business and supply chains to run smoothly, they must meet all the listed requirements for effective inventory management. Thus, inventory management must be managed wisely in order to be a successful an...
Creating logistics value is costly. Logistics accounts for one of the highest costs of doing business. Logistics expenditure normally ranges from 5% to 35% of sales depending on the type of business. Thus logistics even though very important for any business success is expensive.