Logistics Management And Supply Chain Management

D.A. Carson shares that the semantic anachronism fallacy occurs “when a late use of a word is read back into earlier literature” . Before learning Greek, I was guilty of regurgitation of generational pulpit knowledge. There was an inherit assumption that the seasoned preachers and teachers understood the true meaning of the text; therefore, they had to be correct. One particular scripture that I have heard preached and preached many times myself is Acts 1:8. Luke states, “But you will receive power when the Holy Spirit has come upon you. Often the power referred to in this scripture was the action of the English word dynamite. The assumption was that “dynamite blows things up, tears things down, rips out rock, gouges holes, destroys things,

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

Transportation is a key element in the logistic chain. It joins together those components that are considered to be separated. In order for transportation and logistics to work together successfully there must be good management between them. It plays a major role in connecting it all together. Supply chain management is defined as a continuously evolving management philosophy that seeks to unify the collective productive competencies and resources of the business functions found both within the enterprise and outside in the firm’s allied business partners located along intersecting supply channels into highly competitive, customer-enriching supply system focused on developing innovative solutions and synchronizing the flow of marketplace products, services, and information to create unique, individualized sources of customer value (Ross, 1998).

SCM can be divided into three main groups: purchase, manufacture, and transport (Thomas et al., 1996). The focus is on transportation. There are different modes of transportation. These modes of transportation fall under three basic types and they are: land (road, rail and pipelines), water (shipping) and air. Transportation plays a connective role among the several steps that result in the conversion of resources into useful goods for the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost and maximize service to the customers that constitutes the concept of business logistics. The system, once it’s put in place, must be effectively managed (Fair & Williams, 1981). What are the advantages and disadvantages of these modes of transportation in logistics?

The inbound start from the suppliers to manufacture and the out bound begin from warehouses to end users.

Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one 's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.

Logistics Management is the governance of supply chain functions. Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design,

“Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”

The value of logistics is evaluated when the inventory is correctly positioned to facilitate sale. It is very costly to create a logistical value.

In order to achieve a more balanced and fair approach to a global logistics chain it is important to understand how important the interrelationship between transportation and logistics. Without well-developed transportation systems, logistics could not bring its advantages into full play. Having

“Logistics management is that part of the Supply Chain Management process that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.” (cscmp.org).

Minor Logistics Operations Presentatie titel MIRBSLM114OP N.J. Osentoski-Monsma & A. Nielsen-de Vries Lecturers Logistics Room D2.173 osenj@hr.nl / vriad@hr.nl Rotterdam, 00 januari 2007 6-1 Corporate strategy Business strategy Operations Strategy Mission Objectives (cost, quality, flexibility, delivery) Functional strategies in marketing, finance, engineering, human resources, and information systems Strategic Decisions (process, quality system, capacity, and inventory)

How does a raw material’s status as pure, weight-losing, or weight-gaining influence the facility location decision? A pure

“Supply chain management includes, but is not limited to, new product development, marketing, operations, distribution, finance, and customer service” (Chopra and Meindl, 2001). The flow of supply chain management can be divided into three main flows; I have outlined it in the diagram below to show how each flow is interconnected to the other.

The supply chain management basically involves processes and activities which are involved in the planning, organising, controlling and implementing the cost effective flow of goods from the point of origin to the point of consumption. The whole process will have different players like the supplier, manufacturer, distributor, retailers and the customers themselves as the end point of consumption. The supply chain has changed drastically over the years. This days they are very global in nature. Involving various complex interactions and flow of goods, data and funds between companies which are situated in different countries and continents. Even though the companies are spread across the world the manufacturing plants generally follow a similar structure which normally comprises of the suppliers, manufacturing plants, distributors, retailers, inbound and outbound logistics providers. There were a lot of challenges which arose because of the competition which made the companies to rethink their strategies in order to get the product to the right place at the right time at the lowest cost possible. The companies should always look at improving the whole supply chain and every player in the chain should coordinate with one another if they want to increase the efficiency. The organisation should realise the strategic importance of supply chain as it is a key to building a sustainable competitive edge. (Li, Ragu-Nathan, Ragu-Nathan, & Rao, 2006).