Material Handling Systems - Assignment Example

Review 5 al Affiliation) Material Handling Systems Handling systems deal with how materials move through the entire production process. As such, the system entails the safe handling of materials and products from manufacturing to consumption by the consumers. The handling system focuses on reducing wastage; hence, efficiency. As such, it may be mechanized, semi-automated, automated, or information- directed. A mechanized material handling system (MMHS) replaces the conventional manual material handling systems whereby laborers had to walk with wheelbarrows to move materials (Frazelle, 2002). The contemporary MMHS focus on optimization rather than mechanization. The tools of mechanization include conveyor belts, cranes, and rollers to move materials through the entire production cycle. The mechanized material handling systems substituted the manual material handling systems in terms of equipments though individuals have to be present to operate the equipment manually. For example, a forklift will still require a driver for it to operate. A semi-automated material handling system is a high-density system for storage whereby multiple pallets are kept in deep lane storage. A semi-automated system is almost similar to an automated handling system whereby the storage system is flexible. As such, the pallets may be retrieved from any lane without being in the system physically. Unlike the mechanized handling system, the semi-automated and automated handling system does not require the physical presence of a laborer to control it. A semi-automated system includes the case picking, 80/20 rule, and the LIFO/FIFO method (Frazelle, 2002). On the other hand, the automated system includes the monorails, pallet dispensers, and case packers. Information directed handling system is a new-era mechanism incorporated into the material handling system whereby the order picking system entails a voice and light-directed picking system. Laborers communicate to the Warehouse Management Systems (WMS) in a hands free manner to complete their tasks efficiently. Consumer and Industry-Focused Packaging Packaging forms an integral part of the logistics within the production process. The role of packaging, regardless of consumer or industry related, is to ensure that the product reaches the consumer as desired. Packaging entails reducing wastage to ensure that the quality and quantity of a product meets the consumers’ expectations. However, packaging is influenced by whether it is consumer or industry related. The main aim of consumer focused packaging is to create a product that is appealing. On the other hand, the aim of industrial focused packaging is to comply with the minimum packaging requirements in terms of quality and quantity. The consumer focused packaging focuses on marketing whereas the industrial focused packaging focuses on the critical control point (CCP) aspect of production (Mullins, & Walker, 2013). As such, companies ought to comply with both aspects of packaging to ensure that their products are acceptable to both the industry regulators and the consumers. For example, a cereal product should adhere to the industry packaging requirements in terms of labeling and quantity (kilograms). Besides that, the product ought to be appealing to the target market in terms of visualizations on the package. On the other hand, industrial focused packaging is mandatory to all companies as it forms an integral part of the industrial regulations for production. The consumer focused packaging is also considered as mandatory because all firms ought to maximize sales, and such is possible by ensuring that products are appealing to create a competitive advantage over the competitors. The point of deviation is that, for industry-focused packaging, companies have an obligation to follow the industrial regulations. However, for consumer focused packaging, companies are at liberty to make the product as appealing as possible through visual impressions on the package (Mullins, & Walker, 2013). Transportation Security and Global Sourcing In the contemporary world, most businesses are opting for global sourcing to obtain goods and services. As such, the international markets bring together the world’s economies due to the availability of resources. However, security issues have a negative influence to global sourcing (Czinkota, Ronkainen, & Kotabe, 2009). For example, the 9/11 attacks have brought about transportation security issues that are yet to subside. The changes in transportation security since that event are responsible for increased prices to cater for any damages that may occur in transit. In addition, it is expensive to transport products over borders because of excise duties imposed to ensure that the entry of foreign goods to countries is minimal. The changes in transportation security since 9/11 have enhanced foreign investments whereby investors invest on foreign land to ensure that products are accessible; hence, eliminating the need for overseas transportation. As such, global sourcing has reduced tremendously because fewer consumers are willing to take the risk for transporting products overseas. Foreign investments have taken over global sourcing; hence, providing safer options for accessing products. The impact on global sourcing is elevated by the fact that consumers are not willing to incur the cost of transportation security. As such, producers are coerced to avail the products right at the consumers’ convenience. This is in addition to investors settling on foreign lands to ensure that the extra cost of transportation security is limited (Czinkota, Ronkainen, & Kotabe, 2009). Logistics Considerations for Operating in a Global Supply Chain To operate in a global supply chain, it is prudent to consider the total delivered cost management. This means that the total costs involved with the supply chain from the inception of the supply to distribution are critical. The delivered costs include tariffs, duty, and custom costs and form the international and local logistics costs. Additionally, it is important to automate the global logistics process to save the time spent on low value activities resulting from manual steps. As such, an automated global logistics process would result in continuous improvement on the plans and approaches required to move the freight. Companies ought to have an end-to-end visibility of the entire supply chain. The end-to-end visibility entails having complete knowledge about the product to ensure that the cycle is not compromised by system malfunctions or inefficiencies. Another logistics consideration for the operation of a global supply chain is the regulatory compliance and product identification. Such a consideration attempts to reduce the security concerns inherent in the supply chain. It is important to note the restrictions concerned with imports and export as well as the Custom-Trade Partnership against Terrorism (CTPAT) (Bookbinder, 2013). Lastly, a dynamic routing system ought to be established to ensure that the logistics flow is not fixated to a single design. The global supply chain involves a complex interplay of the aforementioned logistics considerations; hence, a seamless logistics flow is established. Controllable and Uncontrollable Factors of Global Sourcing Global sourcing is such an uncontrollable event that all firms ought to undergo in the contemporary business world. As such, it is prudent that companies define what they can control and distinguish it from what they cannot to ensure that the global supply chain works for their good. An aviation or aerospace firm will face similar controllable and uncontrollable factors of global souring as other businesses, but the difference will be in the definition of the aspects that define the factors. The controllable factors are those well known to the firm and are collectively referred to as the marketing mix. The aerospace firm will always be in control of the product it sells, prices it charges, the place of operation, and the promotion plan. It is with no doubt that the firm is responsible for the marketing mix because its products must be unique from those of its competitors. On the other hand, the aerospace firm will not have control over the political, economic, social, technological, legal, and environmental factors (PESTLE) of global sourcing. The PESTLE factors are collectively referred to as environmental factors that are beyond the control of any firm. As such, the firm will have to adjust to the environmental factors present in the global arena. In addition, the firm will not have control over the security because technological systems are prone to change, and what may be considered secure by one firm is obsolete to another. The aerospace firm can manage its global supply chain and transform to optimize business results. The potential strategy would entail realizing the benefits of globalization, maximizing on individual competencies, and delivering value over other aerospace firms. As such, the firm would realize its position in the global sourcing platform; hence, gaining a competitive advantage over its competitors. The strategy would focus on three significant steps (Chan, & Lee, 2005): The aerospace firm would need to establish the action necessary to map itself to the global integration strategy. As such, the firm would have to align its business strategies to those of the global integration efforts. It is possible to achieve this by mapping the firm’s competency areas in terms of globalization and offering unique value to the business strategy. The aerospace firm would then map the business components that are compatible to the global integration forums. The firm may employ a Component Business Model (CBM) to identify the components to change to allow compatibility. The final step would involve evaluating the benefits of the integration between the business components and the globally integrated enterprise. It is at this point that the global supply chain would be effective and fundamental to the going concern needs of the firm. As such, the aerospace firm would be in a position to monitor and alter its global supply chain to suit its business needs. However, the firm needs to adopt a dynamic routing system for its global strategy to manage its global supply chain. It is, therefore, prudent that the firm maintain compatibility between its business components and those of the globally integrated enterprise (Crouch, & Maclean, 2011). References Bookbinder, J. (2013). Handbook of global logistics. New York, NY: Springer. Chan, C., & Lee, H. (2005). Successful strategies in supply chain management. Hershey, PA: Idea Group Pub. Crouch, C., & Maclean, C. (2011). The responsible corporation in a global economy. Oxford: Oxford University Press. Czinkota, M., Ronkainen, I., & Kotabe, M. (2009). Emerging trends, threats, and opportunities in international marketing. [New York, N.Y.] (222 East 46th Street, New York, NY 10017): Business Expert Press. Frazelle, E. (2002). World-class warehousing and material handling. New York: McGraw-Hill. Mullins, J., & Walker, O. (2013). Marketing management. New York: McGraw-Hill. Read More