LOGISTICS MANAGEMENT

Logistics and Operation Management

Logistics and Operation Management

Introduction

Logistics management refers to the system of flow of the goods to the destination from the place of production and manufacture. This flow of goods will flow through certain processes, for the production of tangible goods raw material purchases procurement is need to be done till the goods turn into finished goods the process will undergone with many stages like material purchasing, material handling, manufacturing, packaging, inventory and warehousing. The process of logistics management is efficient process, every organization adds this business aspect for effective work processes, integration takes place between the departments of the company. Logistics would be very cost minimization and motivational approach; this can be implementing in the company by model analysis optimized by the business leaders. This paper covers all the aspects of logistic, begins with the environment analysis of the company and processes involves in the operation management and supply chain management of the company.

Discussion

Environment

The environment is concerned, the internal and external factors that impacts the company`s performance either derived in the right or wrong way. The analysis includes the PESTLE (Physical, Environmental, Social, Technological, Legal and Economical factors) need to be procured properly in order to fulfill the business requirements. Pestle factors are important part for business operations, it requires close look to make the decisions by the leaders and management in favor of company, internal and external epidemics. Business leaders and management are more specific to make the decisions its vital role played by the competition and rivals in the industry that always compete in price war and production war to discourage its competitors.

Prices

Price war among the competitors is the opportunity for the consumer, in which consumption utility of the consumer increases and ultimate beneficiary is the consumer and the marketer who is market leader among the price war. Price is the main feature of the product; it attracts the consumer when the prices are in the reach of the peoples. Prices create the differences among the producer of the same products. Management can reduce the prices when only they have low cost leadership structure in their processes, the incurring cost to production is low, so the profits margins increases by itself (Visser, E. 2007, pp. 213-226).

Pricing strategy

As stated above the Nike targets the audience who are more stuck with the product intimacy and careless with the use of product, so Nike sets the prices relatively high of the products in comparison with the competitors. To push the perceived product value this is a strategy that calls for high pricing points. This thought is established if, once consumer considers a product to be high quality so he can pay the high price as well consistently and more often. Nike logo tells the consumer about the right choice that he/she made. This strategy is also called vertical integration pricing strategy which controls cost and therefore influence the pricing function (article dashboard, 2011).

Pestle Analysis

Political Factor

The political factor is very important and integral part of business, when the ...