Logistics Transportation Cost Analysis - Outline Example

LOGISTICS TRANSPORTATION COST ANALYSIS AND CONTROL OF ENTERPRISE Lecturer: Logistics Transportation Cost Analysis and Control of Enterprise Background to the Study Supply chain management (SCM) remains an important philosophy in the overall management of modern day organizations, particularly those that focus on multinational trade. Through SCM, companies bring together all aspects of the supply chain in well harnessed manner that ensures the efficient and effective flow and usage of resources (Misra, Kahn and Singh, 2010). Of the aspects supply chain that multinational companies give attention to, logistics and transportation play very important role. This is because whether companies are in the manufacturing sector or services sector, there is often the need to move raw materials and other forms of resources from the supplier end to the production or service end. Whiles doing this, logistics come to play as the management of the overall flow of resources and raw materials from the supplier end to the consumption end (Nyhuis and Wiendahi, 2009). With the movement and flow of goods and raw materials taking place also, one would expect that transportation will be necessary in achieving safe and speedy delivery (Misra, Kahn and Singh, 2010). Knowing the important role logistics and transportation play in the SCM, companies have started giving these aspects of supply a lot of attention by increasing budgetary allocation to these areas of management. Nyhuis and Wiendahi (2009) however posited that efficient and effective control of enterprise through logistics and transportation management must not merely be determined by the amount of monies allocated to them. This is because a failure to get returns from the investment in this area could only amount to waste for the organisation. It is for this reason that the issue of logistics transportation cost analysis has become a very important topic of discussion in the control of enterprises. This is because through cost analysis, companies are offered ways in which they can get the best returns from logistics whiles ensuring that there is effective transportation cost structure and an efficient relationship established between transportation cost and transportation tools. Motivation for the Study The selection of the current research topic looking at logistics cost analysis and control of enterprise comes with the motivation of bridging a number of gaps in literature and practice that have not been given very critical focus yet. The first of this has to do with the clear cut relationship that exists between transportation cost and transportation tools. Preliminary review through literature established that transportation cost and transportation tools have been treated as two contrasting and independent phenomena that virtually do not influence the other in any way (John and Phelan, 2012). The researcher however holds the opinion that finding the relationship between these two is one of the most important approaches to ensuring that logistics costing is carried out in a manner that avoids wastes and yields profitability. In this study therefore, the approach to achieving this will be through logistics cost analysis. Secondly, it can be seen that there are literature and practical instances where transportation optimisation has been focused as part of improvement scheme of transportation cost control (Waters, 2003). However, most of the approaches used in enhancing the improvement scheme of transportation cost control have made use of conventional approaches that fail to guarantee optimisation and utility. In the light of this, the researcher is motivated to emphasise on the use of scientific design transport network to optimise transportation. The rationale behind the use of the scientific design transport network is in the several advantages and merits that come with such a design. First, it would be noted that the scientific design embraces the use of system design which has become a more modernised means by which companies define the architecture, components, modules and interfaces of their systems to meet specific requirements (John and Phelan, 2012). In effect, scientific design transport network embraces the all new approach to organisational management which anchors on system design. The second reason behind the selection of the scientific design transport network is that it will enforce utility by ensuring that several components of logistics transportation are brought together to achieve a common fit. Some of the components include road, rail and water transportation. Aim and objectives The study is to be conducted with the aim of finding how the scientific design transport network can be used to optimize transportation. To accomplish this aim, there are very specific objectives that will be pursued by the researcher. The objectives have to be achieved before the researcher can claim the achievement of the aim. The objectives are given as follows: 1. To find the components of cost analysis used in modern organisations 2. To examine the effectiveness of cost analysis methods used by modern organisations 3. To establish the relationship between transportation cost and transportation tools and find how an understanding of the relationship helps in mitigating cost 4. To devise a logistics cost analysis intervention based on the use of scientific design transport network and examine the effectiveness of this intervention in optimising transportation. Significance of the Study The successful completion of the proposed study is expected to come with several significant advantages. Whereas some of these benefit the field of logistics literature, others will be useful for professional logistics practice. As far as literature is concerned, it is expected that the study will fill most gaps that exist in the academia about logistics transportation cost analysis. By so doing, ongoing and future researchers would have very strong conceptual basis on which they will establish their own research. Very often, conducting research with limited resources for conceptual framework makes the research lack credibility because the researchers have to rely on personal intuition and reasoning instead of fact backed evidence. But where there are gaps in literature, researchers have very limited options than choosing such unproductive means. By concluding this study therefore, most gaps relating to the relationship between transportation cost and transportation tools, as well as the importance of scientific design transport network shall be put in context. From a more practical context, this study shall be conducted through the use of primary data collection, which means that there will be realistic interventions about how existing issues of logistics cost can be addressed within organisations. Waters (2003) lamented of the high degree of cost associated with logistics transportation, which makes companies fail on realising the real advantages that should come with SCM. Such problems have come about because most of these companies have not used the right approach to transportation optimisation. The reason this is said is that we are now in a modernised business climate where most activities of organisations have been digitised and computerised. In the light of this, the scientific design transport network is expected to aid the companies in knowing the best ways in which they can match logistics cost analysis with the changing trend that has characterised modern business operations. Preliminary structure of the thesis The thesis is expected to be structured around six (6) major chapters. The first chapter which is the introduction chapter is to give a general overview of the problem, including how it has evolved and why it is important for the researcher to address it. The second chapter will be the literature review, which will be dedicated for the reviewing of published themes around the research topic. This will be done to establish a theoretical framework for the study. In the third chapter, the methodology to be used in collecting data shall be spelt out. Chapter four shall be for the analysis of data collected, whiles the fifth chapter will pave way for discussion of the findings made. The discussion will give the researcher the opportunity of comparing the findings made to what has already been established in literature. In the final chapter, the researcher shall give conclusions based on the findings made and the discussion provided. References John T. and Phelan, Jr. P.E. (2012). "Guest Column: Knowing When a WMS or WCS Is Right for Your Company". Supply & Demand Chain Executive. Enom, Inc. Misra V., Kahn M.I., and Singh U.K. (2010). Supply Chain Management Systems: Architecture, Design and Vision. New York: North American Business Press Nyhuis P. and Wiendahi H. (2009). Fundamentals of Production Logistics. Berlin: Springer Berlin Heidelberg. Waters D. (2003). Logistics: An Introduction to Supply Chain Management. London: Palgrave Macmillan Read More