Essay on Supply Chain And Logistics Management

Essay on Supply Chain And Logistics Management

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The term logistics is originally from the military, which consist by the supply of necessary items for national defence. Till 1960s this term was started to be used in the business and management area, it mainly was used to describe the physical distribution. During the development of the management science and technology, during 1970s to 1980s, logistics had more functions, includes the inbound and outbound logistic which separately support manufacturing, with materials management and marketing with physical distribution (Coyle, Langley, Novack). In the 1990s, logistics had been defined as a process which includes the controlling of goods, and information from start point to end customer requirement. It also includes inbound, outbound, internal and external movement and the reverser movement for environment purpose (Council of Logistics Management, 1998).
The concept of supply chain and logistics management is easy to make people confuse, but as Giunipero and Brand (1996) claimed that supply chain has a wider context than logistics, he thinks supply chain could be seen as a management method on the strategic aspect which can enhance customer satisfaction in order to improve a company’s competitiveness and profitability. According to the research of Rhonda, Dennis and Robert (2001), on common understanding in the related area, logistics is a process to plan and control goods or services resources from the start point of the resource to the final consumer in order to meet their requirement; and the process is considered to include inbound, out bound, internal and external movements and reserve movement of the raw materials and finished products.
In conclusions, logistics management is the control of the material flow in practis...

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...duct’s availability would produce a high cost for logistic system, because warehousing, inventory and transportation is the main cost, and it also come with the risk of damaging inventory.
Improving the productivity of logistics would have a great influence on the profit and the consumer, because it allow the company to have fast responds to the market. This mean logistics need to have good production forecasting, scheduling and inventory management. Improving productivity of logistics enable companies to have less inventory, which is able to cut down a large number of purchasing cost and directly increase the net profit. This require the logistics group to have good prediction of the inventory, efficient transportation and flexible warehousing. In conclusion, with high productivity logistics, potential consumer is easier to become the real consumer of the company.

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