Discuss About The Importance Of Managing Inventory Transport?
The article aims at showing the importance of managing inventory and transportation field to reduce loss or any inefficiency as a result of poor planning. The author also explores intermodal connectivity and vehicle routing planning(VRP) as a means of improving operation management.
According to the author, Operations Management is dedicated to research and execution of all those actions aimed at generating the greater value added in the production of goods and services. The concepts of production and logistics should be clear (Collaborative Promotions, 2010). The content of any plan of operations revolves around the how? And with what?
Operations Management is responsible for the production of the goods and services of the organization, from being responsible for the decision making in the operations function and the transformation systems that are used. Raw materials and inputs Comparison against desired output in terms of how best the operation management should give results. Logistics is responsible for the efficient distribution of resources and products with a lower cost and excellent service delivery (Heizer, Render & Munson, 2017). It seeks to strategically manage the acquisition, movement, storage and control of inventories, as well as the entire flow of information associated to perform an activity in a timely manner and at the appropriate cost.
Key questions on the article.
The author is interested in knowing how improving various aspects of supply chain management will improve operations management of a company. One of the questions he asks how channel management is an important factor between marketing and supply chain and how this can improve the overall operations of the company. He also asks how these can be improved.
Objectives of Logistics
The objective is to reduce investments in acquisition, purchase, storage, distribution and transportation of materials. Provide a logistical planning so that there is smooth operation in the organization.
Determines and coordinates optimally the right product, the right place and the right time to satisfy the patient. It must be applied before logistic planning to determine what we are going to do and what we need, how we are going to get it, where and how we are going to save it, how we are going to keep a record of what is missing and what is left over and if we have The necessary staff (Hugos, 2013).
Operations management also deals with a set of activities that involves the total flow of materials and the flow of information associated with it, from the point of origin to the point of consumption. It facilitates and develops support activities to achieve the business objective: meet the "requirements" of customers in a timely manner.
Key concept of the article
It is necessary to define the services that will be provided and the products to be elaborated inside and outside the office to determine what needs to be purchased in advance and stored. In procurement It is necessary to know what materials, inputs and instruments it is desired to have for immediate use or for the timely renewal of existing ones (Johnson, 2002).
Companies must manage complex, cross-border supply chains with inefficient manual processes, long process times, increased risk, and a number of regulatory requirements that characterize these supply chains.
Transport planning and implementation processes should cover all modes of transport. Companies need to determine how the supply chain will be, what inventory is needed, where inventory should be installed in order to get the best transportation prices, develop and execute transportation plans for own and third party assets (Weele, 2015). In this way you can create the most efficient logistics route to achieve the best results and thus improve visibility from the time the order is created to the delivery of the product.
Transportation planning or vehicle routing planning(VRP) allows for the analysis of the orders based on the place of origin and destination, consolidating the loads and determining the most appropriate way to move the cargo considering the dates of delivery and the budget for the transfer.
Transportation planning allows the optimization of daily or weekly transport plans by means of load consolidation, transport selection, income and output integration, which includes the routing of common conveyors (Hugos & Thomas, 2006). Daily or multi-period transport plans can be created, as well as tactical transport planning with "what if" scenarios, better fleet design and capacity. It covers the entire spectrum of specific needs, lowering costs and improving service to customers.
The design of the network must be integrated with tactical planning to achieve better results; Has the objective of solving supply chain modeling, optimizing problems, including product entry and exit, strategic and tactical planning and global as well as regional (Weele, 2015). The point & click function with interactive map allows you to view all logistic modeling and to design and optimize the whole chain network, you can balance warehouse and inventory costs together with transport and production costs, To customer demands.
Route planning provides the necessary technology to develop the strategy to implement a dynamic and real-time route; And it allows to realize intelligent route programming(Graham, 2005).In that sense, logistics makes it possible to take the first step towards this goal: reducing the costs of supplies.Thus, in a world where there are more demands for higher quality and lower costs in the processes, the mining industry is forced to perfect its operations through an optimal logistics management (Stevenson, n.d.).
This fact confirms the determining role that supplying companies have in the logistics management chain and even beyond their field of operation, since they are not only developed locally, but are capable of generating innovation, export capacity and, consequently, , Contribute to the growth of their communities.
All the errors of the direction conclude in the inventory, you hear in the hallways of the jargon. Inventory is often as necessary as it is pernicious, and we need not deal here with the pros and cons of maintaining inventory levels or different inventory management models. It is necessary to mention here that to achieve that the value created and expressed in a product (which we can call value of form) and all the efforts put into creating brand value through the marketing activities (which we will call possession value) Have the desired effect, it is necessary to consider the management activities linked to time and space (Stevenson, n.d.). The management of times and spaces must occupy an important place in the agenda of any organization interested in achieving healthy levels of customer service and operational profitability.
The article has been subdivided into three parts, the writer provides information on the following topics i.e logistics,supply chain and inventory and transport management. In the logistics section, the writer points out that the complexity of logistics can be modeled, visualized,analysed and optimized by a dedicated software (Bolstorff & Rosenbaum, 2003). He underscores the fact that minimization of resource use is the main motivator in logistics for import and export.
For the supply chain part, the writer states that companies do not seek to achieve an improvement in profits or reduction of cost but instead they seek to make the supply chain a whole more competitive.
For the inventory part and transport management, the writer points out that the main line of research has been focused on finding solution on deteriorating inventory models. However, various researchers have pointed out that new models can be developed to capture current managerial features and obtain new managerial insights. There is also research on VRP (Vehicle routing problem) to ensure that there is cost minimization between terminals to enable operations to be efficient.
Inferences in Supply Chain Management
The article provides the following inferences, that development of economy and technology has improved operations management of supply and chain management(Peltz, 2008)..With continued research in the supply and management field, companies can be assured of better management of logistics and other transport related issues.
Somehow, it is possible to say that the logistics are universal and that their methods are common maintaining the frames of reference, as they are situation, seasonality, locality among others.
Therefore, it is important to talk about levels of development in logistics. In the world, for example, the development of operations in a company clusters in the zones of operation provided a great advance and a level superior to its logistics (Nandi & Ganapathi, 2015).
In its basic role, logistics management involves the purchase of goods and services, which must be transferred safely and through the use of controls (Park & Banyai, 2007).
These goods must be transferred, stored and received by someone. All this implies a chain of integration of several suppliers in the logistics management. This leads to a more efficient operations management and consequently better link between the customer and the company.
In order to overcome all the challenges it is indispensable to automate and control the management and the transport processes; Increase inventory visibility and costs, and reduce expenses and times, as well as risk factors. The only way to achieve greater profits is to overcome the competition and this is only achieved by automating the management with technology.
The software allows you to take advantage of new opportunities, strengthening and expanding customer satisfaction by optimizing all transportation management processes.
The objective is to design and optimize the whole network of the supply chain to automate the management of the transport processes, eliminating the silos of information and the lack of continuity in the processes to obtain visibility of the logistics and the control in the whole chain globa (Johnson, 2002)l. In this way you can create an effective plan to meet the demands of moving products.
Companies around the world and all sectors, manufacturing, retail and distribution need to optimize their transport operations for better decision making. The software must have tools for strategic and tactical planning of the supply chain, and a transportation execution so as to create a plan for the moving products and then execute that plan through the collaboration of the suppliers, improving the billing , Increasing customer satisfaction and ensuring customer loyalty. All these benefits allow you to make better decisions(Stevenson, n.d.).
Bolstorff, P., & Rosenbaum, R. (2003). Supply chain excellence. New York: American Management Association.
Christopher, M. (2016). Logistics and supply chain management. Harlow (England): Pearson.
Collaborative Promotions. (2010). Heidelberg.
Graham, G. (2005). Supply chain management: an international journal. Bradford, England: Emerald Group Pub.
Hugos, M., & Thomas, C. (2006). Supply chain management in the retail industry. Hoboken (N.J.): J. Wiley & Sons.
Heizer, J., Render, B., & Munson, C. (2017). Principles of operations management. Boston: Pearson.
Hugos, M. (2013). Essentials of supply chain management. Hoboken, N.J.: Wiley.
Johnson, P. (2002). Principles of controlled maintenance management. Lilburn, GA: Fairmont Press.
Nandi, S., & Ganapathi, S. (2015). Logistics management. New York [u.a.]: Oxford Univ. Pr.
Park, L., & Banyai, I. (2007). Tap dancing on the roof. New York: Clarion Books.
Peltz, E. (2008). Effectively sustaining forces overseas while minimizing supply chain costs. Santa Monica, CA: RAND, National Defense Research Institute and Arroyo Center.
Schechter, D., & Sander, G. (2002). Delivering the goods. New York: Wiley.
Slack, N., Brandon-Jones, A., & Johnston, R. (2017). Operations management. Cape Town: Pearson.
Stevenson, W. Operations management.
Weele, A. (2015). Purchasing & supply chain management. Australia: Cengage Learning.