StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

LOGISTICS & OPERATIONS MANAGEMENT 2 - Essay Example

Cite this document
Summary
In changing economic environment marked by globalization processes, the role of has been changed. In general, the emphasis behind a logistics approach is to view the movement of products, as they pass through the manufacturing process and eventually to the customer, as a total system…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER95.3% of users find it useful
LOGISTICS & OPERATIONS MANAGEMENT 2
Read Text Preview

Extract of sample "LOGISTICS & OPERATIONS MANAGEMENT 2"

LOGISTICS & OPERATIONS MANAGEMENT 2 In changing economic environment marked by globalization processes, the role of has been changed. In general, the emphasis behind a logistics approach is to view the movement of products, as they pass through the manufacturing process and eventually to the customer, as a total system. Thus instead of marketing, production, distribution and purchasing - all working away oblivious to the others, and each trying to optimize its individual efforts - the logistics concept suggests that it may be necessary for some or all of these areas to operate suboptimally in order that the whole system may be more effective.

There are a wide range of definitions based on main logistics functions within organizational and production processes. Taking into account business definition, "logistics is defined as a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today's business environment " (Logistix Partners Oy, Helsinki, FI, 1996, cited What is logistics 2005). Another definition reflects overall purpose of logistics and states that: "Logistics means having the right thing, at the right place, at the right time" (What is logistics 2005).

The latter definition is more appropriate for today's business environment because it reflects the nature of business itself and customers expectations typical for present day economics. For many years, production inefficiencies have been criticized and scrutinized in order to increase productivity. There has been little close examination of possible savings in the area of physical distribution, now known as logistics. There is a movement towards a closer analysis of all aspects of logistics.

This is particularly important where selling and distribution costs are high (Barnett, 1996). Not many companies have paid attention to the importance of the logistics effort as being a positive factor in contributing to profitability through its impact on customer service. The idea behind the logistics is evolving and today this concept concerns systems, and it rejects the traditional ideas that each activity (marketing, production, purchasing, and distribution) should try to optimize their own set of logistic activities, while disregarding the involvement of others in the flow of materials.

Looking at the concept from a total viewpoint, may indicate that some parts of the system can operate at less that the optimum in order to make the whole system more effective. For example the production manager may need to schedule shorter runs, or the transport manager more frequent deliveries, if it benefits the total logistics system. Acceptance of the logistics concept implies a recognition of the fact that an action affecting one part may affect all others. The importance of 'place' is simple: if a product is not available when and where a customer wants it, it will surely fail in the market.

Taking into account changing role of logistics it is possible to say logistics means a system which incorporates such areas as planning, implementation and controlling of products according to changing demands of customers, internal and external factors and cultural preferences. Also, it is important to note that today logistics means the total flow of information and materials into, through and out of the system. In future, the role of logistics as the main tool of strategic management will increase.

Logistics helps to tailor customer service strategies in order to meet the precise needs of customers playing the role of a powerful tool of differentiation and leading to enduring competitive advantage (Chase, Jacobs, 2003). Understanding customers' service preferences based on cultural and social dimensions is the starting point for re-engineering logistics processes to ensure greater cost-effectiveness (Aquilon, 1997); thus customers' service preferences should be the starting point for the development of logistics and supply chain strategies.

The challenge to the organization then becomes one of how to re-engineer processes and to restructure conventional, functional systems to achieve these service goals at minimum cost.References1. Aquilon, Malin. Cultural dimensions in logistics management: a case study from the European automotive industry. Supply Chain Management: An International Journal, Jun 1997, 2 (2), pp. 76 - 872. Barnett H. Operations management. Macmillan, London. 1996.3. Chase R.B., Jacobs R.F. Operations Management for Competitive Advantage, Hill/Irwin; 10 edition, 2003.4. What is logistics 2005.

Available at: http://www.logisticsworld.com/logistics.htm

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“LOGISTICS & OPERATIONS MANAGEMENT 2 Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
LOGISTICS & OPERATIONS MANAGEMENT 2 Essay Example | Topics and Well Written Essays - 500 words. Retrieved from https://studentshare.org/miscellaneous/1500328-logistics-operations-management-2
(LOGISTICS & OPERATIONS MANAGEMENT 2 Essay Example | Topics and Well Written Essays - 500 Words)
LOGISTICS & OPERATIONS MANAGEMENT 2 Essay Example | Topics and Well Written Essays - 500 Words. https://studentshare.org/miscellaneous/1500328-logistics-operations-management-2.
“LOGISTICS & OPERATIONS MANAGEMENT 2 Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/miscellaneous/1500328-logistics-operations-management-2.
  • Cited: 0 times

CHECK THESE SAMPLES OF LOGISTICS & OPERATIONS MANAGEMENT 2

The Olympic Organization: the Logistics and Transport Segment of the Olympics

The main purpose of this case study is to look at the specific operational management issues that the Olympics had.... Furthermore, the operational management issues will be analyzed and so will the solutions that UPS provided during the solving of the said issues.... In addition, the strategy that UPS uses when it comes to logistics especially during the Olympics is of core importance to this paper and the plan the UPS had for Olympics to help sort out the operational management issues....
9 Pages (2250 words) Case Study

Sustainable Logistic

Though being one of the few plastic re-processors in the UK, faces many issues so far as it's logistic and supply chain management is concerned.... The firm's attitude towards the supply chain management is to some extent outdated and fragmented.... Information management is the key factor that determines success in logistical operations.... PlastCo has failed to incorporate integrated information technology solutions within its logistic and supply chain management operations....
10 Pages (2500 words) Case Study

Inbound Logistics, Conversion Operations and Outbound Logistics

hellip; t is owing to such growing competition, that the managers now have turned to logistics as an essentially convenient means of transforming the organizational strengths into increased productivity and to strengthen its competitive standing in the industry as a whole. Logistics rations involves several essential elements of a business such as production management, information flows, transportation of goods, warehousing, inventory control etc.... It may also be defined as the management of inventory in motion and at rest....
5 Pages (1250 words) Essay

American Military Logistics Since World War I

Finally, modern logistic advances are examined in terms of operations research, supply chain management, and integrated iterative processes.... Namely, the significant size of military operations necessarily resulted in trench warfare.... The paper "American Military logistics Since World War I" discusses that the Cold War is considered in terms of stockpiling efforts....  … this essay has examined advances of American military logistics since World War I....
8 Pages (2000 words) Coursework

Logistics and operation managment

Logistics and operations management primarily deals with analysing the demands and trend of the external market and likewise emerge with the plan for production of goods and/or services that are be able to meet the demands of the customers.... In order to determine the effectiveness of the teamwork, it will be vital to discuss about the weaknesses and strengths of the methods and approaches used to complete the process of operations management based on a given scenario....
16 Pages (4000 words) Essay

Effects of Globalization on Loogistics

… As the report declares logistics has rapidly undergone transformation, with the onset of globalization presenting a number of developments such as technological innovations and environmental conservation in the process of adopting suitable supply chains.... The main setting of this paper is to highlight the impact of globalization on the current economic environment, with specific focus on the logistics and transport sectors....
6 Pages (1500 words) Essay

Difference between Operations and Project Management

The science of operations management rests on preset guidelines, though subject to change.... Market expansion and leadership(sales and marketing), innovation (R & D which may also result in New Projects), establishing financial viability(profits), employee welfare (HR Initiatives) and information sharing (two-way communication and transparency) are some of the important functions of operations management.... The paper "Difference between Operations and Project management " discusses that cost-cutting through alliances for expansion rather than organic growth is another way of containing costs, since paying for existing infrastructure is quicker and better than creating one at its own expense....
10 Pages (2500 words) Research Paper

Contemporary Logistics

… Logistic management Logistics refers to the overall management that is in control of providing actions in a company such as procurement, sales, distribution and production.... Logistics synchronizes such actions with demand and it is aimed at increasing Logistic management Logistics refers to the overall management that is in control of providing actions in a company such as procurement, sales, distribution and production....
7 Pages (1750 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us