Supply Chain Management and Logistics - Essay Example

Supply Chain Management and Logistics Review Uncertainty affects the overall the logistical performance through the delaying of product delivery to customers. This implies that errors in packing or packaging can result in the wrong dispatch of products to the customers. It is essential to ensure that products are correctly marked and packaged in the correct boxes to match the requirements of customers. Uncertainty also affects the overall logistical performance because it breeds a bad reputation among the suppliers and their clients. It emerges that when clients receive the wrong supplies they incur transpiration and storage costs, which is detrimental to their business (Myerson, 2012). Such businesses also lose customer confidence due to inconsistency of stock in their stores. Logistical performance depends on the positive feedback from clients and their intention to continue business interactions with each other. The moment a supplier loses the trust of his or her customer, then this dents the image of the entire firm. An example of how uncertainty affects logistical performance is when a supplier fails to ship the correct supplies to the customer. It may also comprise of a supplier delivering goods to the wrong customer or uses the incorrect control systems (Mangan, Lalwani & Butcher, 2008). The impacts of such aspects are that they cause delays, lack of coordination and delivery constraints that incur expenses and logistical challenges. The key elements of a supply chain comprise of communication, creativity, risk control, efficiency and integration. Communication in the supply chain is vital for it eliminates errors and delays that might arise between the two parties (Mangan, Lalwani & Butcher, 2008). As a result, communication ensures that all parties are updated on the progress of supply, enhancing efficiency and productivity. Risk management reduces errors and costs that may be avoided to ensure maximum profits. The supply chain firm should coordinate with external firms to understand the current market requirements. This requires the support of experts who can predict and ascertain the changing trends in the supply management fields. Integration is the blending of processes to ensure that the best procedures are adopted. This relies on the networks and communication protocols that link departments and external firms for effective delivery of supplies. Efficiency is a key element of the supply chain because it aims at improving the quality of services offered to clients. This is appropriate for countering emerging competition and other external challenges that may certain the operations of the firm (Myerson, 2012). Creativity is an aspect that promotes the adoption of concepts that will fit in all markets and for all clients. These aspects are all essential for the effectiveness of modern day logistic operations. A postponement is an intentional action to delay the final production or supply of commodities until the acknowledgment of a client order. Geographical postponement is the situation in which an entirely stocked expectancy inventory is stored at one or other strategic locations. This facilitates timely delivery of orders from customers situated in that locality. An example of a geographical postponement is the use of warehousing locations in strategic places. For instance, a supply chain organization can have warehouses in all major urban centers to reduce costs and attend to customers’ orders immediately (Myerson, 2012). The manufacturing postponement is when a manufacturing stops the production of goods pending receipt of customers. It is essential for the reduction of wastage of raw materials and only attends to ordered goods. The manufacturing postponement is adopted by firms that deal with risky or high inflammable commodities. It is crucial to anticipate the peak seasons when customer place large orders to prepare the production facilities. Sometimes, the manufacturing postponement works better is there are many demands or orders to be met and the customers are not willing to submit orders and payments in good time (Mangan, Lalwani & Butcher, 2008). The significance of both postponement methods is that they cater for the needs of customers depending on the orders and localities. This eliminates delays and wastages of resources can be instrumental in other sectors of the supply chain. The movement of materials or products through a supply chain starts the moment a customer places an order. This is because the supplier will work on the details of the order to ensure that the correct products are delivered. The suppliers then contact the manufactures to prepare the goods for delivery or pack them for warehousing. Once the goods have reached the suppliers, they will ensure that they are of the correct quality and quantity (Myerson, 2012). They start branding and wrapping them according to the specifications of the customers. The finished goods are then shipped or transported to their destinations using the most appropriate means that is cheap and convenient. However, absence if the goods at the manufactures can result in outsourcing of the services to other suppliers who have ready goods. This depends on the nature of the order and the urgency by the customer. Outsourcing is only applicable if it is the cheapest option and the outsourcing firm is near the customer (Myerson, 2012). The transportation of the goods is done upon the down payment in which the remaining amount is issued after the offloading phase. The next step is for the customer to confirm if the goods delivered are of the right quality, quantity and cost. The customer will issue the remaining amount to the supplier and receive the goods for storage. Integrative logistics is a coordinated management of the whole logistics chain as a sole entity. It disregards the use of separate management of single logistical units and functions by using technology. The benefits of this strategy are that ensures automatic control of processes, flexibility and quick response. It is flexible because last-minute changes can be handled at the correct moment if the communication is conveyed through the convenient channels. It is apparent that an integrative logistics strategy enables shippers to act quickly to the changing demands of customers. Integrative logistics adopts technological aspects that ensure an organized control of processes from the manufacturing phase to the transportation. For instance, after a customer places an order, the production department starts preparation of the goods while the finance process payments ready for transpiration to commence (Mangan, Lalwani & Butcher, 2008). The focus shifts from a functional orientation to a process orientated operation through delivery of information and instruction from a central source. This benefits a firm by ensuring that workers operation towards the objectives of the organization by coordinating with other departments or branches. This is done through the internet and communication channels with the respective branches near the customer’s location. The coordination of various branches across the country facilitates easy communication that reduces confusion and errors (Mangan, Lalwani & Butcher, 2008). Customers can contact the main company if delays are encountered and receive immediate feedback from the management. An anticipatory business model is when nearly all the essential processes have been traditionally finished in expectation of future demands. This is necessary due to the risky nature of the processing requirements. For instance, when a firm expects the demands of goods to go higher in the near future, it can overproduce the goods to maximize returns (Myerson, 2012). This is an old method where firms were not integrated to communicate concerning market needs. The anticipatory business model causes a change in organizational plans that may be the wrong expectation. Alternatively, the responsive business model is the performance of the essential processes after an order has been placed. It does not rely on forecasts, but works with the earlier set plans to ensure that production matches the placed demands. For instance, delivery of goods is only done the suppliers receives orders from the customers. The main difference between anticipatory and responsive business models is that responsive model offers customers the chance to customize products on lesser orders (Myerson, 2012). This implies that anticipatory form has forecasting as the first responsibility while responsive model considers sales as its main focus. References Mangan, J., Lalwani, C., & Butcher, T. (2008). Global logistics and supply chain management. Chichester, England: John Wiley & Sons. Myerson, P. (2012). Lean supply chain and logistics management. New York: McGraw Hill Professional. Read More