Importance of Logistics and Supply Chain Management and What Strategies and Planning Used for It
Even as companies have learnt to squeeze efficiencies out of their manufacturing plants through concepts like just in time replenishment, statistical process control, and lean manufacturing practices, they still find that moving goods and services through several layers of their global supply chains is time consuming and costly - Importance of Logistics and Supply Chain Management and What Strategies and Planning Used for It introduction. Logistics and supply chain management has become one of the last frontiers that still remain to be conquered by most businesses in the twenty first century.
Yet this cannot be done unless all managers and supervisors, irrespective of their functional orientation and current job responsibilities, fundamentally understand their supply chains and how their effective functioning flows right down to the bottom line. Since today it is not uncommon to see companies develop a product in one country, manufacture it in another, and sell it to a third country, the complexities associated with global trade must be accounted for in designing and managing supply chain.
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In addition, new products could be introduced in several countries almost simultaneously, and suppliers with special expertise and technology could collaborate with manufacturers in different countries to create global products. As the world moves toward an international economy, the battle cry for corporations is increasingly becoming one of “global operations and supply chain management”. While globalization promises enormous strategic benefits by coordinating operations located in different countries, it is imperative for managers to develop a perspective that can fully understand and exploit the intricacies of the global marketplace.
Managing manufacturing and service operations across cultural, economic, and political boundaries is a formidable challenge, because of which many globalization efforts are falling far short of their promise. Q: explain the importance of logistics / Supply Chain Management & What Strategies and planning Use with it. Discuss ANS : Before the explain the importance of Logistics I want to introduce the logistic history . Early people had the choice of Consume the goods at their immediate location or moving the good to a preferred site and storing them for a letter use .
However because no well Developed transportation And Storage system yet existed . the movement of goods was limited to want and individual could personally move . a storage of commodity was possible for only short time. This limited movement –storage system generally constrained to people live close to the sources of production Even today in some Areas of world Consumption and production take Places only within a very limited geographic region some population live in Small Self Sufficient Villages and most of goods needed by the resident are produced in the immediate Vicinity . ew goods are import ted from other areas . therefore production Efficiency and Economics Standard of living is low . in this type of economy a well Developed and inexpensive logistics system would encourage an exchange of goods with other production areas of the country or even in the world In start I want to put some Definition of supply chain management Monczka, Trent, and Handfield (1998)
Supply Chain Management requires traditionally separate materials functions to report to an executive responsible for coordinating the entire materials Process, and also requires joint relationships with suppliers across multiple tiers. SCM is a concept, “whose primary objective is to integrate and manage the sourcing, flow, and control of materials using a total systems perspective across multiple functions and multiple tiers of suppliers. ” La Londe and Masters (1994) Supply chain strategy includes: “… two or more firms in a supply chain entering into a long-term agreement; … the development of trust and commitment to the