Aero Marine Logistics
Tomer Dicturel
California InterContinental University
Aero Marine Logistics
Introduction
During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers ' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is an important strategy to manufacturing or service companies.
The first argument is that they are not completely the same terms in operations because of the scope where utilized are different. CSCMP states that the supply chain management includes all activities about planning and management, such as procurement and sourcing, conservation and all logistics management activities according to (Goetschalckx, n.a). It is vital to notice that it also collaborates and coordinates with channel partners. Logistics concentrates on coordination among business
Reorders are placed at the time of review (T), and the safety stock that must be reordered is:
How does a raw material’s status as pure, weight-losing, or weight-gaining influence the facility location decision? A pure
“Supply chain management includes, but is not limited to, new product development, marketing, operations, distribution, finance, and customer service” (Chopra and Meindl, 2001). The flow of supply chain management can be divided into three main flows; I have outlined it in the diagram below to show how each flow is interconnected to the other.
When thinking about the idea of Supply Chain Management (SCM) there are two core ideas that can be taken into account. Nearly every product that is obtained by a consumer is done so through the efforts of multiple companies working collaboratively. Secondly, many companies within these systems have historically been focused only on what role they play individually. SCM strives to bridge the gap between companies and organizations by providing effective management of supply chain activities in a way that maximizes profitability and consumer satisfaction.
The globalisation of markets has increased customer demand and product differentiation. Higher quality products and shorter delivery times are essential for maintaining customer satisfaction in highly competitive markets like the consumer electronics industry. Consequently, supply chain management is an important process in all businesses, and if managed effectively, can give companies a competitive edge. However, it often
Logistics as be defined by the Council of Supply Chain Management Professionals is the process of planning, implementing, and controlling procedures for the efficient and effective transportation and storage of goods including services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements (Vitasek, 2013). Reverse logistics (RL), can happen at any point within the supply chain, so therefore, RL can be defined as the process of planning, implementing, and controlling the flow of raw materials, in-process inventory, finished goods and related feedback from the point of consumption, the customer, to the point of origin for the purpose of either disposal, refurbishing, reuse, or reallocation in a cost effective manner to recapturing value.
The supply chain management basically involves processes and activities which are involved in the planning, organising, controlling and implementing the cost effective flow of goods from the point of origin to the point of consumption. The whole process will have different players like the supplier, manufacturer, distributor, retailers and the customers themselves as the end point of consumption. The supply chain has changed drastically over the years. This days they are very global in nature. Involving various complex interactions and flow of goods, data and funds between companies which are situated in different countries and continents. Even though the companies are spread across the world the manufacturing plants generally follow a similar structure which normally comprises of the suppliers, manufacturing plants, distributors, retailers, inbound and outbound logistics providers. There were a lot of challenges which arose because of the competition which made the companies to rethink their strategies in order to get the product to the right place at the right time at the lowest cost possible. The companies should always look at improving the whole supply chain and every player in the chain should coordinate with one another if they want to increase the efficiency. The organisation should realise the strategic importance of supply chain as it is a key to building a sustainable competitive edge. (Li, Ragu-Nathan, Ragu-Nathan, & Rao, 2006).
SCM can be divided into three main groups: purchase, manufacture, and transport (Thomas et al., 1996). The focus is on transportation. There are different modes of transportation. These modes of transportation fall under three basic types and they are: land (road, rail and pipelines), water (shipping) and air. Transportation plays a connective role among the several steps that result in the conversion of resources into useful goods for the ultimate consumer. It is the planning of all these functions and sub-functions into a system of goods movement in order to minimize cost and maximize service to the customers that constitutes the concept of business logistics. The system, once it’s put in place, must be effectively managed (Fair & Williams, 1981). What are the advantages and disadvantages of these modes of transportation in logistics?
The inbound start from the suppliers to manufacture and the out bound begin from warehouses to end users.
Minor Logistics Operations Presentatie titel MIRBSLM114OP N.J. Osentoski-Monsma & A. Nielsen-de Vries Lecturers Logistics Room D2.173 osenj@hr.nl / vriad@hr.nl Rotterdam, 00 januari 2007 6-1 Corporate strategy Business strategy Operations Strategy Mission Objectives (cost, quality, flexibility, delivery) Functional strategies in marketing, finance, engineering, human resources, and information systems Strategic Decisions (process, quality system, capacity, and inventory)
“Logistic is the process of planning, implementing and controlling the efficient, effective flow of goods storage of goods, services and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements”
Logistics management is part of supply chain management, which deals with organizing, executing and directing efficiency in the movement of goods in and out of the manufacturer’s warehouse. On the other hand, a supply chain entails the sequence of all the modalities employed in the production and distribution of goods; it consists of parties involved either directly or indirectly towards the satisfaction of the customer.
Logistics Management is the governance of supply chain functions. Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design,
Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing complexity of supplying one 's business with materials and shipping out products in an increasingly globalized supply chain, calling for experts in the field who are called Supply Chain Logisticians. This can be defined as having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer and is the science of process and incorporates all industry sectors. The goal of logistics work is to manage the fruition of project life cycles, supply chains and resultant efficiencies.
“Logistics management is that part of the Supply Chain Management process that plans, implements, and controls the efficient, effective forward and reverses 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.” (cscmp.org).