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Importance of value chain management
The role and importance of the supply chain
The Importance of Supply Chain Management is very important and effective to all companies
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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 …show more content…
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 practises, which using planning, implementing to make the flow and storage of goods and services from start to end of the chain efficient and effective, in order to meet the consumer requirement Rhonda, Dennis and Robert (2001) . Logistics productivity …show more content…
This decline is possibly related to the deregulation of transportation in early 1980s and the development of inventory level management. Coyle et al. (2012) mentions that from 1985 to 2006, nominal GDP and the value of all business inventories both had an increase of 212.3% and 119.2%. Saving cost on inventory management could add value to inventory itself, so the productivity improvement of logistic could bring growth to the economy by add value to the products. Purchasing profit leverage effect can also support this point of view, because the decrease on purchasing cost will directly go into the net
...tbound Logistics: The outbound logistics include the movement of the finished goods from the manufacture to the retail stores or a warehousing facility for later use.
...dustrial Distribution allows me to pursue my interests in both Business and Engineering, and therefore I chose that major. Also, it will help me to build my personal characteristics that will make me successful in this major. As my education continues, I look forward to learning how manufacturers and distributors maintain good communication and relations, so that the products can be distributed efficiently and avoid problems. If there are problems, I would also like to comprehend ways to solve those problems. In the future, I hope to work for a company such as Amazon, Dell, or Boeing in the field of logistics. These companies depend on logistics in planning and conducting their operations. Since logistics and relations between manufacturer and distributor are critical to the everyday operations of businesses, understanding this will help me in my future endeavors.
The process related to the movement and storage of products from the end of the production line to the consumers.Outbound logistics refers to the processes involved in moving products from thecreating firm to the firm’s customers. The field is focused on two concepts which are transportation and storage. The storage part of the field uses warehousing methods to keep the finished goodsand make sure the goods are accessible and safety. The transportation part is generally the more important and complex part of outbound logistics.
Logistics exists to satisfy customer requirements by facilitating relevant manufacturing and marketing operation. The main responsibility of logistic is the geographical positioning of raw materials, work in process and finished inventories at the lowest possible cost.
According to ….. supply chain management can simply be viewed as managing the production inventory system. It is described as a tool used in business to better keep track of inventory and handles information as well as the process among companies. In this process, various
Reverse logistics has become an increasing concern for many companies over the last decade. It is the process of the movement of goods, moving in the opposite direction, such as from the customer to the business. Some important processes involved are the physical movement of goods, customer support, warehousing and repair. Reverse logistics handles the issue of handling resources effectively. Rogers and Tibben-Lembke (1999) defines reverse logistics as the ‘process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal’. This definition is seen to...
Logistics has been defined as that type of business planning that focuses its operations in material management, flow of information and capital and efficient service delivery in an organization. Some of the important components involved in the process of logistics include complex information, control systems, and effective communication channels that will make the whole process simple and efficient. A warehouse is also an important part of the logistics system as it plays several roles that are important to both the traders and the target market. Thus, this paper will define a warehouse, its roles in the logistics system, the different types of warehouses and why businesses may prefer one warehouse to the other. Finally, the
Outbound logistics: They are made up of centralized logistic centers to promote efficiency, global network, reduced emission of CO2 by 22% to ensure ecological sustainability and lastly to improve customer service.
Materials and physical distributions looks at grouping logistics into either inbound or outbound. Moving and storing goods brought into the organization (inbound) will require different attention from moving and storing finished goods. Another approach to analyzing logistics systems is to view the various logistical areas as cost centers and then examining to find the lowest cost trade off you can get. The logistics channel considers the network of organizations involved in the flow of goods within the supply chain. Nodes are storage points, assembling facilities or manufacturing sites in an organization. Links shows the transportation networks that links these various nodes in the system. Organizations prefer to use the node and link approach of analysis because it simply illustrates the very complex logistical system. In addition, this system allows you to see where improvements can be made in the
In logistic industry, they have been through lots of challenge in worldwide market. As the containerization of the global economy scopes, a phase of development and explanation, ports find themselves inserted in ever changing commercial environment where logistics is the forefront. Thus, this industry reaches a phase of maturity and rationalization due to the process of logistic on land.
Some manufacturing companies, commercial enterprises began to use modern logistics management concepts, methods and techniques, the implementation of logistics process reengineering and outsourcing. Traditional transportation, warehousing, freight forwarding companies implement functional integration and extension services to accelerate the transition to a modern logistics enterprise. A batch of new logistics enter...
Zanjirani F., Rezapour, S. & Kardar, L. (2011) Logistics operations and management concepts and models, 1st ed. London ; Elsevier.
Preceding from this understanding and being a logistics staff officer, my carrier is full of logistics proble...
Coyle, J., Langley, C., Gibson, B., Novack, R. and Bardi, E. (2008).Supply Chain Management: A Logistics Perspective. 8th ed. Cengage Learning, p.366.
As an outcome of the thesis, my professional interest on the issue associated with the development of logistics sector has been enhanced. Furthermore, I am planning to keep an eye on the sector to enhance my knowledge which will benefit me and the organization I work for.