Essay on Logistics Management Of Supply Chain Management

Essay on Logistics Management Of Supply Chain Management

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1.1 Logistics Management Definition
Logistics Management concept changes from organization to another. However, the most widespread definition is published by the Council of Supply Chain Management (CSCMP, n.d) which have considered logistics as "the part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information from the point-of-origin to the point-of-consumption in order to meet customer 's requirements". Additionally, USAID (2011) defined logistics management according to the consumer hopes as a process which guarantees that the right merchandise, in the right amounts and right condition, are carried to the perfect location, at the ideal time, for the right cost. The main components of logistics management system include: Physical supply and distribution, and internal operations (NSDC, 2010).
1.2 The effect of logistics productivity improvement on economy
Logistics affect economy in number of ways. Logistics cost is considered as a major expense for the firms. In the big industrialized countries, logistics contribute a high percentage of the gross domestic product (GDP) (Cupido, 2012). Thus, this will cause some impacts on the inflation, interest rates, productivity and different sides of the economy (Hertz & Alfredsson, 2003). According to Cupido (2012), “In the United States back in the 90’s logistics contributed 10.5% 0f the GDP that is almost $800 billion divided on transportation of freights, warehousing, storage, carrying inventory, and other expenses in logistics”. Additionally, if the logistics activities cost is continuously increasing, this will lead to a higher logistics percentage of the GDP. Therefor...


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...ing and distribution, as well as managing market demand by effective planning, allows the company to have a flexible smooth operation between the source and the customer. As a result, the customer will be satisfied (Zhang, Vonderembse & Lim, 2005).
As stated by Lim & Palvia (2001), there are many ways where the organizations work on their logistics plans to satisfy the consumer, such as:
• Keeping the desired products available at all times.
• Decreasing the lead-time by increasing supply trips.
• Decreasing the human errors and distribution problems through the accuracy in billing and delivering the products.
• Flexibility in the distribution system.
• Taking notice of any new information related to a change in the price of the products, or its new ingredients, as well as any delays in shipping.
• Provide after sale support for the consumer on their products.




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Essay on Logistics Management Of Supply Chain Management

- 1.1 Logistics Management Definition Logistics Management concept changes from organization to another. However, the most widespread definition is published by the Council of Supply Chain Management (CSCMP, n.d) which have considered logistics as "the part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information from the point-of-origin to the point-of-consumption in order to meet customer 's requirements"....   [tags: Logistics, Supply chain management, Economics]

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