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LOGISTICS NETWORK
LOGISTICS NETWORK
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Logistics Network
The first thing I would embark on in this design would be to get everyone involved in the entire process, ranging from higher management to all the lowest employee on the company’s payroll, as the decision that we will make not only effect the present, but the future days as well. I will then put together cross-functional teams including someone from the sale department, the marketing department, manufacture, as well as operation. “A cross-functional team can be referred to as a team comprised of professionals drawn from different functional areas within a given company” (Simchi, 2010, pp. 110-1).These teams use concurrent approaches.
According to Tepic, (2011, p. 76)”The logistics design network is simply a strategic decision that possesses long lasting effects, as well as impacts all functions within the company. For the basic success of such a project, several levels of the organization have to be involved”. These are:
Upper Management: This new design has to be aligned with the vision as well as strategic goals of the hiring company. Additionally, such a project might be costly, so management buy-in will be essential in order to ensure that enough resources will be devoted to the project.
Sales and Marketing: Demand forecasts in addition to the anticipated changes in the product design and offerings will affect the network, and the involvement of sales and marketing teams will be required (Donald, 2010).
Manufacturing and Operations: The entire logistics network design will possess an obvious impact on the day-to-day operations of the firm. For the implementation towards success, it is essential that all the people involved with the system of operation on a daily basis will be involved in its design (Simchi, 2010).
The decision showing a single warehouse will be built has been reached up-front. Therefore, we will only need to focus on the final location as well as the capacity of the warehouse, and then determine how much space has to be allocated to each product inside the warehouse. The major steps of the analysis are as outlined below.
Data collection
Location of retail stores, existing warehouses, manufacturing facilities (, and suppliers.
Candidate locations for a new warehouse.
Information about products, i.e., their sizes, shapes and volumes.
Annual demand (past actual plus future estimates) as well as service level requirements of retail stores.
Transportation rates by available modes.
Transportation distances from candidate warehouse locations to retail stores.
Handling, storage as well as fixed costs that are associated with warehousing. Fixed costs have to be expressed as being a function of warehouse capacity (Donald, 2010).
Fixed ordering costs, order frequencies and sizes by product or product family.
Data aggregation
In this case, the following will be included:
Demand require to be aggregated based on the distribution patterns and product types.
Mathematical model building.
Model validation based on the existing network structure.
Selecting of a few low-cost alternatives that are based on the basic mathematical model.
For the final decision, we will incorporate qualitative factors disregarded in the initial mathematical model. For instance, specific regulations and environmental factors.
Optionally, build a detailed simulation model to evaluate these low-cost candidate solutions.
According to Tepic, (2011, pg 65)”With a centralized warehouse, the service level is going to increase and inventory holding costs will be decreasing due to risk pooling. Additionally, fixed costs associated with such warehousing will decrease in a typical way, and inbound transportation costs ranging from the manufacturing facility up to the warehouse level should be less than the total sum of the previous inbound transportation expenditures.” However, we won’t incur increased outbound transportation costs drawn from the focal stockroom to the retailers. In a rundown, the vital configuration exchange off is between transportation expenditures on one hand in addition stock holding expenses and administration level necessities on the other.
In selecting potential stockroom destinations, it is critical to consider issues, for example, land and base conditions, characteristic assets and work accessibility, nearby industry and expense regulations, and open investment (Mallik, 2010). For each of the accompanying commercial enterprises, give particular cases of how the issues recorded above could influence the decision of potential stockroom locales:
automobile fabricating
pharmaceuticals
books
Aircraft fabricating
book circulation
Furniture assembling and circulation
Pc fabricating
In, for example, car producing, autos are typically conveyed over area, and interest is focused around significant urban areas. Therefore, we would expect distribution centers in this industry to be found close extensive urban areas with simple access to expressways and railroads. This would help to decrease the conveyance lead time to dealerships in the urban areas (Donald, 2010).
In the pharmaceutical business, overnight conveyance is normal. Accordingly, closeness to a real airplane terminal is a variable that ought to be considered when picking a stockroom area. Moreover, for crude material distribution centers it is critical that these are near characteristic assets (Simchi, 2010).
In the book business, supplier stockroom areas would be influenced by the accessibility of adjacent regular assets.
With an extensive client build looking for books with respect towards this line, short conveyance lead times are essential. In this manner, in book dissemination, we would hope to discover huge concentrated stockrooms on sensibly valued area where fast transportation modes are accessible (Mallik, 2010). At the end of it all, the warehouse will be fully functional. The logistics network with only one warehouse will be realized out of all the steps described above.
References
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply
chain: Concepts, strategies, and case studies. (3rd ed.). New York: McGraw-Hill/Irwin, pp 110-1
Tepic, J., Tanackov,I., S.Gordan (2011). Ancient Logistics – Historical Timeline and Etymology.
Technical Gazette, pg 76.
Donald, W. (2010). Alexander the Great and the Logistics of the Macedonian Arm. University
of California
L. Torre, Smilowitz, I. (2012). Disaster relief routing: Integrating research and practice Socio
Economic Planning Sciences vol46.
Mallik, S. (2010). “Customer Service in Supply Chain Management”. The Handbook of
Technology Management: Supply Chain Management, Marketing and Advertising, and
Global Management, vol 2 (1 ed.). Hoboken, New Jersey.
R. Ruggeri, A. Perego.(2002). Industrial Logistics
Logistics in Melbourne
Logistics in Melbourne
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In Melbourne city shopping centre, system thinking is a process that utilizes the tools, habits and concepts in a bid to develop a proper understanding of the structures of dynamic systems. With the proper understanding of the system, an individual can easily leverage some of the points in the system so to achieve all the desired goals. In an organization when faced with a dilemma where one is supposed to choose between two opposing partner companies, the organization will be forced to look for a company that can be easily leveraged so as to be able to achieve the company’s goal at a lesser price while still being able to reap profits.
This system of thinking uses two models of thinking so as to be able to apply it in the running of the organization. These models are a single and double loop thinking and learning models. Single-loop model is one that involves the connection of a strategy that will be used in action to the results required from the action. This process is common in the way companies are using the feedback that they gain from their customers so as to better run and develop their products. Microsoft and their recent operating system is one such instance. The Windows 8 system did away with many of the fan-favorite approaches that made it easy to use. However, the backlash has resulted in the company basing their decisions to change the operating system based on the feedback from consumers. This is a learning process for the company.
However, the process whereby the company opts to learn from the feedback and to reevaluate their goals and values then reenacting some of their goals is called the double loop thinking model. This is an added step to a single-loop learning model.
Organization leaders need to understand that there is more to a company than just learning from their consumers and the mistakes that their competitors make. It is for this reason that company managers need to apply the double loop of thinking so as to be able to meet the growing demands of their consumers. However, the single-loop of thinking as well needs to be applied. The reason is that, different companies have their own ways of dealing with the unhappiness of some consumers, and thus they try and change their approach based on the feedback. Therefore, there is no wrong or right method of thinking but it all depends on the situation.
To realize the changes that are taking place outside the organization, company leaders need to be able to use the double thinking model. This is because, they are supposed to look at the situation and determine whether they are affected. If so, they will need to reevaluate the goals and values of the company and conform to them. However, within the organization, there are different approaches applied for different situations.
In conclusion, for a company to thrive in a business industry there is no particular model that can be applied to the company. The company leadership will have to change their approaches based on the instances.
References
Kahneman, D. (2011). Thinking, fast and slow (1st ed.). New York: Farrar, Straus and Giroux.Northouse, P. (2013). Leadership (6th ed.). Thousand Oaks: SAGE.[1]Northouse, P. (2013). Leadership (6th ed.). Thousand Oaks: SAGEKahneman, D. (2011). Thinking, fast and slow (1st ed.). New York: Farrar, Straus and Giroux
Logistics and Supply Chain Article Analysis
Logistics and Supply Chain Article Analysis
Logistics is defined as the monitoring of procurement, planning, execution and movement of materials, communication, service and capital flows with the aim of attaining an objective or a strategy. It might also be defined in other terms as the management of inventory both on transit and in rest. According to Robeson (1994) logistics did not play a crucial role in the success of the company. The meaning of logistics was not well known and accepted in the 1970s and its function was mainly known as distribution of finished good and the receiving and storage of raw materials. In recent times, logistics has gained acceptance by most businesses, industries and markets. In addition, the crucial role of supply chain management has created competitiveness as well as company profitability which have in turn made logistics an important strategy (McGinnis & Kohn, 2002).
In strategic logistic planning, change is inevitable in order to succeed in the competitive global economy. Change comes in various forms which include faster delivery of products and service, sophisticated technologies and differentiation of products. The reason for all this is to have a responsive and more dynamic logistic system which gives the company a competitive edge (Robeson, 1994). A logistics strategy will only give a company a competitive advantage if the company can provide the products and service when they are needed by the consumer and at the right time.
In the twenty first century, people have become very busy and it is difficult for them to go out to a store and shop for what they need. Most companies have developed strategies on how to meet the needs of these customers. Best buy is an example of such a company that has developed strategies to attract such consumers who are willing to make a purchase, but do not have the time to do so. They provide catalogues for these customers who after selecting what they wish to buy, through the website, their products are delivered to them right on their doorsteps. This is a convenient way for the customer to make a purchase without physically going to the store. There is a growing need for such kind of convenience in the world. This need has directly affected the supply chain where the company is required to not only deliver to the different distribution points, but also directly to the customers. This type of distribution comes with its advantages because a company representative interacts directly with the customer and is able to gain information on the different needs the customer wishes could be met. A flexible logistic strategy is very crucial for the success of a business and for effective competition (Robeson, 1994).
Effective management of logistics and supply chain is crucial in satisfying customer requirements for a product or service. It is important that the products or services are supplied to the customer at the right time and at the right place at a minimum cost. Poor logistics which might include a poor location can have severe implications on the whole company. The effective movement of goods and raw materials from the point of manufacture to the final consumer is very important in today’s business environment (Lingham, 2008). The location of the supply chain should be in such a way that the consumer is able to access the product or service with ease. Choosing a poor location would have negative implication meaning that the consumers would prefer to buy products or services from other competitors. This makes it hard for the company to compete in the industry. Having poor location affects distribution negatively making it very expensive to supply the products which will mean that the price for the products will be higher than the price set by other competitors making it hard for the company to thrive in the industry (Lingham, 2008).
The choice of transport is very important in ensuring that products are delivered to the consumer in time. The time between the order and the delivery should be minimized so as to meet the needs of the consumer in the shortest time possible (Lingham, 2008). With the aim of reducing transport costs, different companies have been known to use the slowest means of transport which are obviously cheaper. This will impact negatively on the relationship between the company and the customer. The customer will most likely not accept products or services from that same company in the future due to late deliveries.
Today everyone is looking for convenience and will buy products and services from a company that will be able to deliver required products within the shortest time possible. The biggest change that has occurred in logistic strategy planning is the use of technology to learn about customer needs and offer deliveries fast. The internet has become the most convenient way to buy products and services. Most companies have developed websites where with one touch of a button, the customers are able to view all the products available and the easiest ways to get the products to them in the shortest time possible.
Finally, logistics and supply chain management is very vital for the success of a company. If the logistics are well structured to meet the needs of customers and offer the products in the shortest time possible, then this will give the company a competitive edge in the industry. However, if a company has inappropriate logistics, they will be unable to retain customers and venture into new markets. Their business will be overshadowed by other competitors because customers tend to prefer products from a company that meets their needs, delivers on time or makes the products easily accessible.