LOGISTICS MANAGEMENT

Logistics Management



Table of Contents

1. Introduction3

2. Literature3

3. Methodology5

4. Findings and discussion6

4.1 Supplier selection and relationship6

4.2 Critical criteria for supplier selection7

4.3 Characteristics of key suppliers7

4.4 Supplier-customer relationship8

4.5 Extent of logistics management and development8

4.6 Profile of logistics departments8

4.7 Key objectives of logistics departments9

4.8 Level of expenditure9

4.9 Warehousing10

4.10 Distribution10

4.11 Logistics information systems (LIS)11

4.12 Problems and barriers12

4.13 Future skills of logistics managers12

5. Conclusions and implications13

Appendix17

Logistics Management

1. Introduction

In today's fast paced economic climate, many firms increasingly realise that globalisation has made world smaller and more competitive. A change in one place impacts another quickly. Also, customers seek products that can respond well to their specific needs. As such, firms are now looking at securing cost, quality, technological and other competitive advantages as a strategy to pursue in a globally competitive environment. One currently popular competitive advantage for firms is to promote and provide value to its customers by performing its supply chain activities more efficiently than competition. As a result, one area of increasing focus is on logistical management of a firm's set of operations.

2. Literature

Logistics management can be viewed as detailed process of planning, implementing and controlling efficient, cost-effective flow and storage of materials and products, and related information within a supply chain to satisfy demand (Christopher, 1993 12). Effective logistics management provides a major source of competitive advantage if it can control cost and enhance service differentiation. This unique role will help firms become both cost and value leaders. Thus, good logistics management is increasingly recognised as key enabler, which allows a company to gain and maintain its competitive advantage and ensure maximum customer satisfaction. Truly, logistics is last frontier in business competition (Drucker, 1962 115).

In Asia, many countries are undergoing rapid economic transformation. Barring current financial crisis, economic waves of change have propelled a structural metamorphosis in related sectors. Logistics is one of them. Indigenous companies in these countries have begun to make improvements to their logistical systems by investing considerable capital in logistical facilities and equipment (e.g. Kim, 1996 36). This paper examines case of logistics management practices and development . Thailand is a global player in commodities like rice and rubber, and finished goods like commercial vehicles and computers. With weakening of Thai baht and prevailing regional currency crisis, stimulus for greater export potential is strong. Also, air and sea transportation have been growing and will continue to experience growth (see Tables I and II). A second international airport is slated for construction to support such growth.

Further, one of four Global TransParks (GTP) will be set up . A GTP is an area that combines factories and airports to support Just-in-time (JIT) production. These GTPs will support world-wide network of manufacturing. As a result, logistics management will play a big role in execution of these GTPs (Kanaswasdi, 1994 147).

To date, no recorded empirical research on state of logistical management practices has appeared in literature. This paper therefore seeks to promote a greater understanding of logistics management development . For this reason, an exploratory survey was conducted to explore status ...