SUPPLY CHAIN MANAGEMENT

Supply Chain Management

Supply Chain Management

Describe what you understand by the term 'logistics value proposition'.

Logistic value proposition has been established that logistics should be managed as integrated efforts in order to achieve satisfaction of customer at lower cost. In other way, logistics performed in this manner that creates value.

According to Lambert & Burduroglu, 2000) Logistics services can be easily achieved when a firm is willing to commit the required resources. For example, dedicated inventory can be easily maintained in close geographical proximity to major customers. To facilitate order processing, dedicated communication need to be maintained on the basis of real time between suppliers and customers logistical operations. From this act, a product could be delved within minutes of identifying requirements of customers. Basic logistic performance is can be measured in terms of availability of inventory, operational performance and reliability of services.

Availability of inventory is the probability that consistently meet requirement of products. Information technology play an important role that facilitated flexibility and providing new way to achieve high inventory available for customer beside putting higher capital investment in inventory.

Operational performance is deal with time required for product delivery to customer. It is generally based on speed and consistency. First mostly focus on delivering goods consistency and then seeking for speed.

Tuominen, M. (2004) suggest that Service reliability involved logistic quality attributes. Accurate measurement of inventory availability and operational performance are key to service reliability. Management need to be committed for continuous improvement and established goals on selective basis.

Define the terms 'warehouse' and 'distribution centre' and describe the role of each in adding value to an organization's products and services, particularlyin terms of utility.

Warehouse is the physical distribution center activity that heavily involves in product storage. According to Hackman, et.al, (2001) Storage warehouse keeps products that relatively used for longer period of time and it is often used for those products that are seasonal in demand or supply such as farm products.

The warehouse serves as a buffer to balance demand and supply from perspective of long storage. Warehouse is also use as a postponement until a customer places an order. It allows reduce inventory volume while providing a higher level of service.

Warehouse is a central gathering point for transformation of product to shelf-ready state in manufacturing or altering inventory in order to meet customer satisfaction. Use of warehouse is to support a distribution or manufacturing operation as a process of inventory staging that relies exclusively on forwards picking location and also fills them with enough inventories for future.

Distribution Center is normally smaller than warehouse which is used for receipt, temporary storage and goods redistribution according to the customer orders (De Koster et.al, 2007). It provide myriad of services for clients. A well managed and well organized distribution center provide services such as cross docking, transportation, order fulfillment, labeling and packaging of good that require for order recycling such as order preparation, transpiration and performance measurement. Aim of distribution center is to provide outstanding ...