Nobody downloaded yet

International Logistics: T&L - Essay Example

Comments (1) Cite this document
Summary
Contemporary business environment is indicative of a highly competitive marketplace wherein every organization is involved in applying innovative strategies which seek to align their resources in a manner that help them gain a niche in their respective industries, and attract a larger consumer base in the process. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.1% of users find it useful
International Logistics: T&L
Read TextPreview

Extract of sample "International Logistics: T&L"

Download file to see previous pages As the number of companies offering homogenous products flood the markets, the competition to retain and /or expand consumer base intensifies even further. The growth and survival of the companies, in such an environment, hence directly depends on their internal operational processes as well as effectiveness of the same, and their efforts towards profit maximization. Inventory management, has ever since, gained widespread importance as one of the key strategic alternatives available to companies to retain and sustain their longevity in the business and prolong their competitive positioning in their respective industries (Muller, 2011; Tersine, 1994). There is a strong and direct relationship between stock management and profits; hence the issue of effective stock management has gained considerable significance and momentum as a key strategy to increase financial returns through minimal investment. The strategy applied by Tate & Lyle, of investing in warehousing facilities, contrary to popular wisdom suggesting against it, is a case in point. This paper aims to discuss the key reasons behind the company’s decision to continue to invest in warehousing facilities despite the fact that almost all the modern theories on inventory management suggest otherwise. It also discusses the various ways in which warehouses can be managed economically. Stocks act as a safety buffer between orders placed and received, and acts a safeguard for the companies to cope with unexpected demands (Waters, 2003; Voortman, 2004). Some of the other key reasons for inventory holding are listed below: Capacity planning: Holding of inventory helps companies in capacity planning and scheduling production processes, thus providing them the ability to manage and control the raw material requirements within a specified period of time. Coping with unpredictable demand: It helps them in coping with external economic conditions such as fluctuations in demand, change in consumer preferences etc. Coping with unreliability in supply network: Companies may often face situations whereby the supplier network breaks down, or the suppliers are unreliable and fail to deliver the products on time, in such a case inventory holding acts as a boon. It also safeguards them from losses in situations where there is a serious shortage in supply of required raw materials (Muller, 2003). Protection from cost inflation: Inventory holding protects the companies from sudden rise in prices of required materials, due to inflationary pressures. Furthermore it also helps the company in managing and controlling ordering costs, since buying in bulk affords them the opportunity to save the additional costs involved in repeated purchases. According to Hugos (2011) one of the key advantages of inventory holding, is cycle inventory. Transportation of products or raw materials across different locations entails delays. Hence, in order to exploit the economies of scale with regard to production, procurement as well as transportation, firms are required to reduce the time delays on account of transportation of required materials, which can be ensured only through bulk buying and storing of such materials, thus giving rise to cycle inventory. Holding of inventory safeguards the firms against market uncertainty by helping them cope with unexpected rise in demand. The benefit is calculated in terms of a trade-off between holding large amount of inventory and loss of profits due to inability of the firms to cope with ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“International Logistics: T&L Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from https://studentshare.org/business/1398220-international-logistics-t-l
(International Logistics: T&L Essay Example | Topics and Well Written Essays - 2500 Words)
https://studentshare.org/business/1398220-international-logistics-t-l.
“International Logistics: T&L Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/business/1398220-international-logistics-t-l.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
ko
koeppkathryne added comment 10 months ago
Student rated this paper as
The topic of "International Logistics: T&L" is quite popular among the assignments in university. Still, this document opens a fresh perspective of seeing the issue. I’ll use the idea for my own paper.

CHECK THESE SAMPLES OF International Logistics: T&L

EliteClean International Logistics Strategies

...EliteClean International Logistics Strategies Introduction According to Simchi et al (2008) supply chain management is a set of approaches that are utilized by businesses operations to integrate suppliers, manufacturers, warehouses, and stores efficiently so that goods are produced and distributed in the right quantities, to the right locations and at the appropriate time. This is done in order to minimise costs throughout the system as well as to satisfy the level of service demanded by customers. Global optimisation of logistics strategies is important to gaining competitive advantage in business. A number of techniques are available to document the supply chain or...
11 Pages(2750 words)Essay

Manufacturing Logistics

...or products: stacking, optimizing product placement in relation to the storage”. Material flow in the domestic and international warehouses of the company should be defined with reference to the different interfaces in the system, order management and historical data. Agarwal, G. & Vijayvargy, L. (2011) states “One of the important open issues in logistics is the effective integration of logistical cost component such as transportation cost with facility location models”. In the picking assignments within the warehouse, calculation of volume and weight should be inbuilt in the system taking into account, efficiency in usage of pallet space or pallet racks, choice of...
14 Pages(3500 words)Essay

International logistics Level 2

...from local and international suppliers. The need to adopt the recent management frameworks also acts as a long-term strategy to change the organizational operations trends. Change management strategies for all supply chain processes need also be given the best consideration. The supply chain logistics are also considered vital when technological advances are duly improved. The incorporation of the most recent internet applications in the logistics management would enhance the systems for the overall efficiency and effectiveness promotion (Voigtmann, 2010). Constrains for change Numerous constraints for change are so far identifiable at the company, despite the overwhelming success gained...
10 Pages(2500 words)Essay

International Logistics

.... It is easier to do price comparisons online rather than in a traditional market environment. Going online offers convenience for public as it illustrates that the products will be available 24/7 for global audience. Interaction with customers can be friendly which can help in building better customer relationship. In addition to that, customer gets access to all useful information that he might need to assess the products. Measuring success online is always easier than measuring it through paper works and in stores. Automation of businesses has become possible with the invention of technology which has allowed businesses to reduce their cost significantly. LOGISTICAL IMPLICATION It is important for firms to have online...
8 Pages(2000 words)Essay

International Logistics

...International Logistics There has been a drastic change in the way seaports operate today. The era gone by Fordism 'Economies of scale' has been replaced by 'Economies of scope'. This post-Fordism change has seen a revolution in logistic movement. Subsequently, the port authorities who were hitherto the 'bosses', found themselves at the receiving end. Today, logistics talks of organisations cooperating through economic networks for mutual benefits. In other words, individualism has given way to collectiveness. What brought about this transformation Consumers; that's right! Consumers today seek greater product variety at high quality and reliability. Availability is...
2 Pages(500 words)Essay

Production and International Logistics

...., 'Publisher's Message'. Inside Stories of U.S. Manufacturers, Becoming Lean,. Liker, J.K. ed. viewed 17th August, 2009. http://www.books.google.com.ph/books'isbn=1563271737. Bowersox, D.J., Closs, D.J., 1996, Logistical Management: The Integrated Supply Chain Process. International edn, McGraw-Hill Companies, Inc., Singapore. Chatterjee, L., Tsai, C. Transportation Logistics in Global Value and Supply Chains, viewed 17th August 2009. http://www.bu.edu/transportation/CTS2002G.pdf. Federal Express (n.d.), viewed 17th August 2009. http://www.fedex.com/. Heizer, J., Render, B. 2001, Operations Management. 6th edn, Prentice-Hall, Inc. New Jersey. Hermann, J.W. ed. 2006,...
6 Pages(1500 words)Case Study

International Logistics

...International Logistics Globalization and Liberalization policies have given new dimensions to international trade and most of the scientific management theories have been redefined in order to accommodate the needs of the current globalized business environment. It is not possible for traditional organizations to stick with the same old strategies and to compete in the domestic and international market. Change is obvious in each and every segment of business activities and logistics also not an exception. As per the traditional methods, the procurement of goods was started well before the start of production in order to avoid any possible delay. Most of...
8 Pages(2000 words)Essay

International trade : maritime logistics(maersk logistics)

...and eliminating bottlenecks or roadblocks and thereby assists emergency management. This capability is of supreme importance as it could affect supplies and could even actually grind production to a halt due to lack of critical production materials or supplies. Logistic therefore needs to be blended with the entire procurement, production and delivery process. This research provides a conceptual framework for understanding the maritime logistics that administrate domestic production of goods and services, and for understanding the ways in which international trade evolves over time. It is also necessary to understand the ways in which international trade changes under...
50 Pages(12500 words)Essay

International Logistics

...International logistics International Logistics refers to “the process of planning, implementing, and controlling the flow and storage of goods, services, and related information from a point of origin to a point of consumption located in a different country” (Branch, 2009). It entails managing the flow of goods from one point to another country where it will be consumed. For instance, it is common for companies to source raw materials in Africa, gather products in India and store and distribute to the US. The process involved in moving goods to their destination is called International Logistics. When companies become substantially...
1 Pages(250 words)Essay

3rd Party Logistics

..., J. E., Goldsby, T. J. & Hill, A. V. 2013, Managing the Global Supply Chain (Collection), FT Press: 1-729. Chen, H., CSCMP, T. L., Defee, C. C., Esper, T. L., Fawcett, S. E., Fawcett A. M. , Gibson, B. J., Goldsby, T. J., Hanna, J. B., Keller, B. C., Keller, S. B., Iyengar, D., Rao, S.  Sanders, N. R. Tate, W., & Waller, M. A. 2014, CSCMP Certification Collection, FT Press: 1- 1873. Coyle, J., Langley, C., Novack, R & Gibson, B 2012, Supply Chain Management: A Logistics Perspective, Cengage Learning: 1-720 Dapiran, Peter Lieb, R. & Millen, R. Sohal, A 1996, Third party logistics service usage...
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic International Logistics: T&L for FREE!

Contact Us