Operation Management: Complexities Of Logistics Management Essay

Question:

Describe about the Operation Management for the Complexities of Logistics Management.

Answer:

Introduction

Logistic management is an important part of the supply chain management that helps in effectively implementing the plan for proper flow of goods, services etc it is necessary for an organization to understand the complexities of logistics management the main purpose of logistics management is to reduce the complexities, reduce cost for transporting goods from one place to another. Companies are hiring professionals in order to meet the smooth functioning in an organization (Monczka, Handfield, Giunipero and Patterson, 2015).

Transport and logistics: a look inside.

Transport is one of the most essential parts of logistic management. The goods are carried from one place to another while reducing the excess cost. Transportation is one of the most important aspects while carrying goods in an efficient manner. Logistic planning is one of the most important parts required to manage the life cycle of the goods. It helps in managing the flow of good from point A to point B. both the terms are sometimes used as synonyms but logistics is a more comprehensive term that involve transportation and management of goods simultaneously. It is not just simply a part of logistics management but helps in reducing the loss caused earlier while carrying goods from one place to other by the carrier. Logistics management deals with the simplest and the easiest mode to transfer goods to the consumer. It is necessary to make decision in managing the logistics in order to retrieve an efficient result. The logistic control includes the following procedure (Seuring, 2013)

Logistics management - Evaluation of the logistics operations carried out within manufacturing organizations

The logistics operation carried out within the organization unit is necessary in order to keep a check over smooth flow of goods from one unit to other. It is equally important to manage the flow of goods from one place to another. This helps in reducing overall cost of transport and damages caused in transferring goods. In certain condition when the production unit is very large logistics management is equally important inside the organization. This has helped in reducing the wastage of time and managing abnormal cost (Tayur, Ganeshan and Magazine, 2012).

Packaging is an important part of a logistic function. The logistician pays special attention on packaging the goods so that they are delivered properly to the final consumer. Containerization is related to keeping the goods properly in a container so that no loss incur while transporting them. The containers are made according to the nature of goods. Documentation is necessary for carrying goods from one place to another. It is the duty of the logistician to keep a check over the necessary paper requirements. Insurance is important while transporting goods from one place to another. The government has made it compulsory for the business houses to check insurance before transporting goods. Storage is necessary while transporting goods from one place to another. Storage is a part of the logistics management. Goods are kept in warehouses for time being till they are finally delivered to the consumer. Importing and Exporting Regulations are necessary to be fulfilled in order to transport goods across border. It is necessary to keep a check over the mandatory regulation of the host country and the home country while transporting goods. Freight Damage Claims is a process through which the damages caused during the process of transportation is met by the logistician. All the information related to the freight damage is mentioned in the document. It is the duty of the logistics department of the company to mitigate the risk during the transfer of goods from one place to another. This involves management of goods in an efficient manner so that one can attain the desired result.

Principles of logistic management: an evaluation in a practical environment

A supply chain and logistic supply is a network of suppliers, distributors and subcontractors that is used to source raw material, components and supplies from one place to other. Logistics companies are responsible to store, transport and work-in –progress within the supply chain and distributes finished gods to the supplier.

Firstly there is a necessity to segment the customers on the basis of the distinct needs in order to adapt the supply chain in order to attain profitability. There is a need to customize the logistics network as per the appropriate segment. It is advised to listen to the market demand while planning the supply chain management procedure. Supply chain management requires closer to the customer and speed conversion and managing the cost strategically in order to reduce the excess cost. Lastly it is advice to develop a supply chain strategy in order to review the flow of goods from one place to other.

Impact of information technology on logistic industry.

Information technology helps in restructuring the overall distribution set up in order to achieve higher rate of supply level and a lower inventory cost. Today’s economy has shown fundamental change in the business scenario. All these changes are helping in needing the desired changes in the field of information and technology. IT development has helped in gaining a competitive advantage over the other companies. Investing in information technology is an important investment that is necessary to meet the market requirements (Monczka et al, 2015).

Supply chain management has helped in flow of products and information in between supply chain organization members. All the recent development has helped in retrieving information in a simple manner. Technology helps in coordinating with the activities inside the organization. In an integrated supply chain the information flows in both direction. Managers are using it as an essential to overcome the issue of data management (Voznenko and Roman, 2015; Wu, Yeniyurt, Kim and Cavusgil, 2006).

Value chain strategy of the logistic industry

Value chain strategy of logistics industry looks after the needs to deliver goods in a valuable manner. Value chain is a set of activities that an organization undergoes while conducting an outbound and inbound logistics function. It is the primary activity of an organization to look after the primary needs of an organization by focusing on the smooth logistic supply of goods.

This strategy helps in meeting the benchmark set by the organization at different level. An integrated logistics system in an organization helps in improving the overall efficiency and it also reduces the extra cost (Christopher, 2016).

Conclusion

The whole world in shrinking and hence logistic management has become an integral part in controlling overall cost of a product. The strategic and innovative advancement in supply chain will help in improving competitiveness. It helps in collaborating with the business partners. New SCM system will help the organization to observe past performance and to distinguish in between by ascertaining the future advancements. It helps in reducing the extra cost that is charged while supplying goods from one place to other.

References

Christopher, M., 2016. Logistics & supply chain management. Pearson Higher Ed.

Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning.

Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), pp.1513-1520.

Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain management (Vol. 17). Springer Science & Business Media.

Voznenko, N. and Roman, T., 2015. Features Of Logistic System Adaptive Management. CES Working Papers, 7(2), pp.357-364.

Wu, F., Yeniyurt, S., Kim, D. and Cavusgil, S.T., 2006. The impact of information technology on supply chain capabilities and firm performance: A resource-based view. Industrial Marketing Management, 35(4), pp.493-504.

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