Academics Business & Management

Logistics and Supply Chain Management

Logistics and Supply Chain Management

Organizations nowadays have become more conscious about staying ahead of the competition and gaining an edge in the market. Even in the most competitive market, companies, in order to ensure sustainability, in the long run, need to integrate its business process and operations so as to reach their target goals. Logistics and supply chain management is one of the keys that open the gate of success for any business. This article presents an overview of logistics management and supply chain management. Instant Assignment Experts will help you in giving more details on Logistics and Supply Chain Management.

Logistics and supply change management is used by the organizations to plan and control the activities and operations as well as coordinate amid the companies either in the same or adjacent industries. Though both these terms at times are used interchangeably, however, the supply chain management is an overall concept that connects the numerous processes of an organization to attain competitive advantages in the industry.

On the other hand, logistic is the movement as well as the flow of products, services together with information within the supply chain. The logistics focus on the activities of the same company whereas the supply chain has widened focus due to the involvement of multiple enterprises such as manufacturers, suppliers as well as retailers.

Logistics Management

The logistics work primarily for the requirement of the customers while supply chain management aims towards attaining competitive advantage for an organization. Therefore, it can be said that logistic management is a crucial element of supply chain management. It enhances the aspects of the strategy, planning as well as implementation, thereby reducing the cost to provide maximum satisfaction to the customers.

The role of logistics and supply chain management is to ensure that the product is delivered to the right customer at the right price as well as at the right time without any discrepancy or delay. Besides this, it involves activities such as transportation, warehousing, controlling stock and monitoring the inflow and outflow of goods from the organization.

Supply Chain Management

Supply chain engages activities such as operations and procurements which are necessary for efficient and effective running of business. It plays a vital role in the success of the company as it aims to accomplish the needs and demands, driving outstanding values from customers, enhancing the responsiveness of organization, building network resiliency and facilitating financial success.

Thus, logistic management is an important part of the supply chain management as it involves carrying out of management in addition to information from the point of origin to the consumption-point. 

Planning and Controlling Activities

Planning and controlling activities are among the most important functions of logistics and supply chain management. Activities and objectives are created under planning and implementing the same effectively under control. These two paradigms works for reconciliations between what is needed by the market and what can actually be delivered by the operation resources.

Supply chain management involves the process that helps in the movement of the raw material from the beginning of the production till the deliverance of the goods to the end users. It has been found that in various companies, operational supply chain decisions are made more than a number of times affecting how products could be manufactured or developed, moved as well as sold.

In an attempt to meet the challenges in delivering the goods to customers, companies have adopted automated logistics and supply chain management processes for efficient and significant impact on bottom lines.

In order to attain a better profit margin, there are a few other important benefits of adopting an appropriate logistics and supply chain management technique or strategy, both into the factory, the warehouse and distribution channels. The intricacies of the supply chain vary with the business along with the obscurity and the quality of items being produced.

Functioning of the Logistics and Supply Chain

It is the customers who start the chain of events while they make purchase decisions that have been offered by any company for sale. Logistics and supply chain management system not only enhances the service quality but also amplify productivity through the extraction of wastes.

One of the most important things in the logistics and supply chain management process is to ensure that each activity adds value for the end users. If the product needs to be produced, the sales orders must include a prerequisite that is required to be fulfilled with the use of production function. Experts from Assignment Help Online will provide you proper guidance on Logistics and Supply Chain Management.

Planning

The planning department makes a production plan that includes the manufacturing details of the product in accordance with the demand of the customer and their orders. To manufacture the products the company then purchases the raw material.

The planning department works at the administrative level of the organization. This department refers the project team who create the master plan as well as sector plan along with many other planning efforts that works as the guiding information for the organization to help regulate those plans.

Purchasing

The purchasing department receives a list of raw materials and services required by the production department to complete the customer’s orders. The purchasing process is considered crucial as it works as a tool to identify the requirements of the customers, evaluate the needs efficiently, identify the suppliers, make sure payment occurs effectively and drive improvement continuously.

The raw material is received from the suppliers; it is then checked for quality and accuracy and later moved into the warehouse.

Inventory Management

The inventory management is important because it resists stock-outs, handle multiple locations and ensure appropriate accounting. Inventory is a term related to the stocking of the materials and represents those various levels from raw material to finished products. Based on the production plan, the raw materials are moved to the production area.

These raw materials are used to manufacture the finished product and then sent to the warehouse and stocked for shipping. Implementing a lean logistics and supply chain management in the production process is a key element that helps in developing long-term value and relationship with customers as well as increasing the overall organizational performance.

Production

The production department in a company is responsible to handle a group of activities that involves the manufacturing process of the goods. This department is the largest group within the organization. It is responsible for transforming input into the final output using a set of the process needed for production.

The production manager is responsible for ensuring that the raw material is obtained and transformed into finished good in an efficient way. From there the finished good is sent to the warehouse. The warehouse is considered as the key function as well as a destination in the overall planning and implementation of supply chain management. It aims to receive and distribute the goods or materials. For many companies, it is concerned as a strategic function.

Packaging

On the other hand, the packaging is also a key function in logistics and supply chain management. It is used for protecting finished good from damaging and allows for effective distribution of the products to the appropriate customers. It plays the role of product prompter as it communicates to the customers the information with regard to the goods.

For a successful logistics and supply chain management, the packaging system is required to be connected with the activities of marketing, production as well as logistics.  As soon as the finished products arrive in the warehouse, then the shipping department settles on the most competent methods to deliver the products to the right customers before or on the date as specified. 

This is the overall functioning of the logistics and supply chain management. It requires a lot of efforts from the organization’s end to maintain a balance between the supply and demand of any product or service.

A number of companies have segmented their logistics management streamlined it with the supply chain so as to enhance customer relationship together with lowering down their huge operational costs which might otherwise create a burden on the management. Both logistics and supply chain management are interlinked and so, it will not be wrong saying that one process cannot exist devoid of the other. Assignment Help Australia will now explain you about Inboud and Outbound Logistics.

Inbound and Outbound Logistics

Logistics and Supply Chain Management enhances various activities such as inventory handling, as well as the packaging process of the products, transportation, and warehousing, delivery to the customers.

There is no doubt that the smooth functioning of the organizations depends on the efficient management of supply and demand which in turn have a significant impact the overall image and reputation of the organization in the eyes of the customers.  In this era of globalization, the Logistics and Supply Change Management has become the most important tool to gain the competitive advantage of global market opportunities.

Inbound operations

The managers of inbound logistics as well as of outbound logistics play a vital role in the Logistics and Supply Chain Management. The inflow of the resources that a company needs to produce its products or render services is managed by the inbound logistics managers. They are responsible for building a relationship among the suppliers as well as retailers.

Besides this they manage activities that are necessary for the manufacturing of products such as accessing raw materials, negotiating the price of materials and arranging fast delivery of the products that customers have ordered whereas the manager of outbound logistics deals with two issues including transportation and storage of the goods. They are responsible to implement the cost-saving strategies for the company along with maintaining the orders of the customers.

Outbound operations

To ensure that the good that is produced remains impeccable and safe to use, these managers use warehousing technique. The products may need to be transported as per the imminent demand of the customers and this makes the transportation a critical point which is affected by a number of factors such as a change in the price of fuel or delay delivery. So the outbound logistics manager needs to deal with factors that lead to proper transportation of the ordered products.

 The traditional organization used to treat them separately but at present, there is a certain value added functionalities associated with them due to their interdependency. In simple words, it is said that the Logistics and Supply Change Management helps in facilitating the manufacturing and marketing operations in an organization.

Challenges in the Logistics and Supply Change Management

At present, in all the organization Logistics and Supply Change Management plays a vital role in the smooth working and success of a company. It represents various management functions in the organization. Either big companies or small firms all have somehow ort the other adopted effective Supply Chain Management techniques so as to meet their target objectives. However, in the era of globalization, almost all companies all around the world face some challenges in their management system.

Though appropriate Logistics and Supply Chain Management provides the companies, especially manufacturing units’ competitive advantage as well as a business advantage; however, there are challenges too in the way of implementation of the system.

Due to the increase in the market competition, the Logistics and Supply Chain Management System is facing an increasing number of challenges in the way of creating and running the management system efficiently and effectively. Globalization, consumers changing preferences, market growth, extreme work stress, growing demand of customers are among the major challenges the organizations face in the smooth running of the logistics management.

Processing Enormous Amount of Data and Information

Production of goods goes in a long process and managers are required to maintain a large amount of the details on daily basis. Due to globalization, the information about the suppliers as well as customers from the different location needs to be recorded appropriately and accurately.

The managers’ needs to ensure the details about raw materials provided; security of the good, packaging, warehousing, shipment, labor agreement, taxes and pricing of the materials and many others work’s details. These involve process that are not only complex but also time consuming which as a result leads to the distractions and stress.

The long process sometimes also becomes tedious that diverts the mind of the managers from ensuring accuracy of the details.

Details with regard to raw materials that need to be obtained from the retailers, suppliers as well as partners even including the customers are in both structures as well as in unstructured format which makes it difficult for the managers to identify, evaluate and produce information from such disorganized pieces of detail. This makes Logistics and Supply Chain Management more complex.

Manpower Management

Manpower management is one of the main hidden responsibilities of the managers in the organizations. It is one of the toughest tasks for the inbound logistic managers. They are responsible to maintain human approach and relationship among the workforce and simultaneously with aim to attain more success.

Well! it is not as simple as it sounds, rather it worsens the work environment when the employees or staffs at remote locations are not managed appropriately.

Offering Segmented, Customized Services

The logistics management involves the activities such as packaging of goods in a proper and attractive way and transportation of good to the right customer as per their demand.

The organization needs to ensure that it must meet the demand of the local as well international standard of manufacturing, handling, and packaging as well as shipping of the products. Besides this, we have also heard about the changing trends in customers taste and preference. That too creates a burden on the big organization to deal with these demands.

The organizations are continuously trying their best to fulfill the necessity of the customer and providing them maximum satisfaction but this is not as easy to do as to hear. Company has to keep enhancing the features and update itself with the new technologies for manufacturing and delivering the goods and render services associated with it according to the preferences of the customers. Again a complex situation arises for the managers while ensuring appropriate implementation of logistics and supply chain management.

Cutting Transportation Cost

 It is for sure that companies try to deliver the orders placed by the customers on time or before the expected time. Nevertheless transporting the goods to the customers living in the different geographical location is not easy for the company as it involves the various factors, particularly the escalation in freight charges or even a minor  increase in the price of fuel. This is another challenge for companies in the adoption of cost effective logistics and supply chain management. Besides this, companies also face major threat while handling their cost control protocol. Increase in the operating cost also causes extreme pressure on the financial managers as they have to update themselves with new technologies, deal with the increasing labor wages for the global rate production as well as with the increasing commodity prices. The managements often face problems in cost saving for the organization.

Conclusion

Getting enormous advantages from the logistics and supply chain management is the desire of every company as it involves huge investments so that they can reap the benefits. It is also true that each stage of the supply chain delivers food from the origin (farm) to your dinner table. Supply chains combine integrated logistics, product innovation strategy, and production approach along with forecasting demand. Besides this, the process that is followed in the supply chain management will put the manufacturers and dealers in a great position that enables them, to foresee or predict demand in addition to making their moves or planning their strategies accordingly.

Moreover, when the business is competent to pool resources better or capable of streamlining the whole production as well as distribution processes, it directly improves the bottom line along with enhancing the productivity and the overall output. Thus, the entrepreneurs and the managers along with the entire team can stay ahead of the competition and enjoy greater profits as well.

Therefore, it is essential that companies should understand the implication and importance of a well-organized logistics and supply chain management as well as hire managers to streamline the process that enables the organization to attain productive results.