Iscom374 - Integrated Logistics Managment

Logistics and Supply Chain Analysis Article

                                                       Daniel Tanner

ISCOM/374 - INTEGRATED LOGISTICS MANAGEMENT

October 4, 2015

                                                     ELENA ASHER

Logistics and Supply Chain Article Analysis

When we look at corporations the main focus of supply chain is to continually seek ways to reduce costs, improve productivity, and customer satisfaction while attaining competitive advantage;  as a result, corporations rely on supply chains and logistics to coordinate improvements and productivity across marketing, production, and finance departments to meet goals and objectives. In this analysis we will be referencing three sources as a base of how l both logistics and supply chain management processes will meet customer requirements. In this analysis we will also define exactly what logistics is in terms of organizational strategy. This analysis will also provide the implications of poor logistics and supply chain management and how they are reviewed to identify customer satisfaction requirements in terms of  logistics and the overall impact in the supply chain. Last, but not least, we will provide  examples of inappropriate and appropriate logistics planning that could lead to customer dissatisfaction or satisfaction within the organization.

Logistics Definition

When I first regarded logistics I first thought about the movement of equipment or a product when in fact logistics is an actual part of the supply chain process. Murphy and Wood (2005) state: “According to the council of logistics management, logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective, forward and reverse 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” (p. 6, para. 3). The ultimate goal of logistics is to have the right item, at the right place, and at the right time for the lowest cost.

Logistics Strategic Role within the Supply Chain

Logistics will forever impact organizational success in attaining goals and objectives. Within the last two decades “companies began to view logistics as more than simply a source of cost savings and recognize it as a source of enhancing product or service offerings as part of the broader supply chain process to create competitive advantage” (Mentzer, Min & Bobbitt, 2004, p. 606, para. 1). Most organizations have integrated various strategies to help with the process including: innovation, increasing profits, improving delivery timeliness, quality, or flexibility. Like every business practice each strategy will offers trade off’s and customer value that requires collaboration among different parts of the supply chain or department  within an organization. According to Penske Logistics, “Ford suppliers and carriers currently operate under a single set of transportation and distribution procedures enabling better service throughout the chain” (N. A. 2010. In order to meet customer expectations effective management will be to manage organization’s resources, this will lead to greater specific logistics capabilities. The Aberdeen Group reports that Casio “implemented rapid order sourcing that takes a unique combination of information and business rules to determine where an order should be sourced and the appropriate delivery and build schedules for all the supply chain steps” (N. A., 2007).

Supply Chain Management Implications on Customer Requirements

Poor logistics is often a result of failures in creating unique value-added activities. Logistics capabilities will help organizations achieve the differentiation component of competitive advantage through customer service effectiveness. John Deere recognizes the importance of customer service and awarded Kuehne the Chinese contract to distribute John Deere products. Kuenhe with its 5,500 square-meter facility will handle 10,000 sku’s and 17,000 John Deere units, this team also handled inbound transportation for three factories and offer after sales services (N. A., 2010). In this instance the developing of demand management capabilities to attain strategic advantage was a way for organizations to become more customer-oriented by offering quality customer service and logistics, before, during, and after sales activities. Ford, with assistance from Penske, closed this accountability loop, and in doing so, reduced late or incomplete parts deliveries.