Service Response Logistics vs. Logistics - Report Example

Service Response Logistics vs. Logistics XXXXXX Number: XXXXX of XXXXXX 20 January 2009 Total Number of Words: 1285 words Table of Contents Abstract………………………………………………………………………………………… 2 Introduction …………………………………………………………………………………………….… 3 Logistics ……………………………………………………………………………………………….….. 3 Service Response Logistics …………………………………………………………………………..… 4 Service Response Logistics vs. Logistics …………………………………………………………….. 5 Conclusion ………………………………………………………………………………………………. 6 Bibliography …………………………………………………………………………………... 8 Abstract This report aims at understanding some very important elements, Logistics and service Response Logistics. The report aims at the firstly understanding what each of the two concepts mean and signify and then a comparison of the two concepts have been made. The report includes a clear explanation of the two concepts and also includes a clear distinction of the two concepts. In conclusion the report also highlights the possible future of Service response logistics and highlights whether or not the concept might be well recognized in the future. How does ‘Services Response Logistics’ differ from ‘Logistics’? Do you think the concept will grow in future? Introduction: This report aims at understanding the simple concept of having the right things, at the right place at the right time: Logistics. There has been an increased use of the services Response logistics in the past few years. The main aim of this report is to understand the two concepts and to differentiate the two concepts. This is mainly to understand and to analyse whether or not the services response logistics will grow in the future. This will involve a good understanding of the two commonly used concepts. Firstly lets begin by understanding each of the two concepts. Following this a comparison of the two will be made. To conclude the report an analyses of whether or not the service response logistics will work in the future will be discussed. Logistics: The process of ensuring that the right things are at the right place at the right time is called Logistics. It can be defined as: “a business planning framework for the management of material, service, information and capital flows. It includes the increasingly complex information, communication and control systems required in today’s business environment” (Logistics World, 2008). In simpler terms Logistics means moving products to customers. This is also referred to as ‘Physical distribution management’ or just ‘distribution’. This part of the entire process is in most of the cases outsourced to a third party to normally manage. Here the clients do al the planning for the distribution but the basic haulage and the storage is managed by the logistics providers. The process is extremely simple. The clients / producers plan, the logistics company bring the haulage and the storage together for the client’s products, then arrange for the storage for the products and then finally deliver it to the end customers as planned and required (Slack, et.al, 2006). However logistics is not only shipping or receiving neither is it traffic or warehousing, however it contains much more. There are five major issues that need to be answered for this namely the movement of products, movement of information, time / service, cost, and integration (Craig, 1997). This concept is well recognised and this concept is understood well. Service Response Logistics: This process is very similar to the logistics. The major difference being that this is the process of coordinating the non material and this mainly is for transfer of information and moving of services to the customers. This concept has been there for a very long time however this has now become a more recognised and the understanding of these back – end non – material activities are now becoming more recognised (Murthy, & Blischke, 2006). Understanding the concept better, it is the process of transferring non material activities which are required to fulfil the service in an effective manner. A good example of service response logistics is the services provided by the banks. The customers are worried about their monies that are deposited in the banks, however it is never the case where a customer would be concerned about how and where the monies are transferred to and the mode of transportation, etc. All the activities like transferring the monies, coins, etc from one branch to another, or to the ATMs, etc., are considered as service response logistics. These are mainly for ensuring that the customers get a final service which is to their requirements and the customer satisfaction is high (Robbins, & Coulter, 2007). Service Response Logistics vs. Logistics: The previous sections have highlighted the meaning of the two concepts. These are the main differences among the two. This section will highlight the difference and provide for a better understanding of the two concepts. The main difference between logistics and service response logistics is that logistic mainly deals with the transfer of products from the producers to the end customers. This involves a great deal of planning and in some cases requires the producers to get third parties to work on the logistics, i.e. hauling and storage of the goods, and delivery of the goods to the end users. On the other hand the service response logistics is one where there is a coordination of non – material activities. These activities mainly deal with ensuring that the customers receive the services in an effective manner and the level of customer satisfaction is high among the customers (Ballou, 2004). In the case of logistics, customers are very involved and interested in the production of the goods and products, however in the case of a service; the customers are not worried or interested in understanding the production of the service. Take for instance, when a customer buys a phone, this is a product, for which the customers are very interested in understanding about the production and to check if all the features work correctly, however if the customer has to simply buy a contract without a phone (handset), then the customer is not very concerned about how the phone reception works, or what is used to make it possible to use the phone. This is mainly because this is a service and the customers are worried about making sure that the connection is good and that they can make and receive calls without any disruptions. This is one of the major differences between logistics and service response logistics as well. If the customer has ordered for a product then they would be concerned about the safe delivery of the goods to their door steps. However if the customer has ordered for a service they would not be too worried about the number of non – material activities that need to be done to completely provide great service to the customers (Leenders, et.al, 2006). Also it is noted that the customers are not aware of the costs that are involved in the back – end activities of the services that are ordered and this is one major reason that the service response logistics are not well recognised. Aspects like the construction costs that are borne by the companies to ensure the services are also not understood and never recognised by the customers. Conclusions: Based on the understanding of the two concepts in depth, it has been noted that the use of Service Response has been relatively very high in the past few years. This is mainly because of the simple and easier modes for the distribution. However after having learnt the various issues of service logistics, which are very similar to the logistics issues, it can be said that sine service response logistics is so new, and with the lack of enough empirical research for the effects of logistics in the service sector on the satisfaction of customers and the corporate performance, thus the possibility of this growing more in the future is very high. This concept can grow to great extent in the future and can be beneficial in a number of ways, like better customer satisfaction (Martin & Kefeng, 1995). Thus to conclude it is safe to say that service response logistics might seen a high level of growth and acceptance and this will also provide for better customer service and higher levels of customer satisfaction. This however might not be very famous and useful as the logistics but will show a high level of growth and usefulness. Mainly because the customers do not really understand and are not very interested in understanding hat really goes into providing the service. As customers the only aspect of the service that interests them is the final service. Irrespective of the amount of work that goes on behind to ensure the delivery of the service. However in the recent time since the knowledge of this has increased the chances of this concept to grow is much higher in the future. Bibliography Ballou, R.H., 2004, ‘Business Logistics / Supply chain manageent’, 5th edition, Upper Saddle River, NJ, Pearson – Prentice Hall Craig, T., 1997, ‘Logistics - - Five key Issues for Logistics Effectiveness’, World Wide Shipping, May 1997, Accessed on 17 January 2009, Retrieved from http://www.ltdmgmt.com/mag/five.htm Leenders, M. R., Johnson, P.F., Elynn, A.E., Fearon, H.E., 2006, ‘Purchasing and supply management’, 13th edition, New York, Mc Graw – Hill / Irwin Logistics World, 2008, ‘What is logistics?’, Accessed on 19 January 2009, Retrieved from http://www.logisticsworld.com/logistics.htm Martin, D., and Kefeng, X., 1995, ‘Customer service, customer satisfaction and corporate perfo’, Journal of Business Logistics, Accessed on 15 January 2009, retrieved from http://findarticles.com/p/articles/mi_qa3705/is_199501/ai_n8724668 Murthy, P.N., & Blischke, W.R., 2006, ‘Warranty management and Product manufacture’, 12 January 2006, Springer London Robbins, S.P., & Coulter, M., 2007, ‘Management’, 9th edition, Upper Saddle River, NJ: Pearson Prentice Hall Slack, N., Chambers, S., Johnston, R., and Betts, A., 2006, ‘Operations and process management: Principles and Practice for Strategic impact’, First edition, Person education Limited Read More