How Does Services Response Logistics Differ From Logistics - Essay Example

How does 'Services Response Logistics' differ from 'Logistics' Do you think the concept will grow in the future It is very interesting to that the terms 'logistics' and 'service response logistics' have gained a lot of importance in the fields of business and the realm of business intelligence systems over the years. Service response logistics has a lot more to do with the kind of response a company draws as a result of its provided services. These metrics are very important as they decide the success or failure of an organization as well as its attempts to treat and service its customers in a better way. "Logistics is 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." ((Logistix Partners Oy, Helsinki, FI, 1996). This is very different from the concept of applying principles of logistics and its study that is applicable to the service organization which is in short called "Service Response Logistics.' For every business, it is the end user or the consumers that are to be kept happy and satisfied and serviced well. Service Response Logistics actually goes way beyond defining logistics as it a measure of the manner in which consumers respond to the management of activities in an organization. The most important point to note is that while logistics is always based on a sample size or a chosen number, service response logistics carriers out the study on an individual basis. The overall track record and the history that each provided services are backed with need to be studied and understood in great detail for a positive outcome. Service response logistics is the field of study that hopes to address these issues through a repertoire of guiding concepts and principles. It helps the organization manage and organize all its work processes that are geared towards the managing and providing a service. With the increasing popularity of a number of modules that deal with supply chain management, information management, knowledge integration studies, etc, the meaning of the term 'logistics' has actually got quite unclear and even its usage has become more generic. When you need to coordinate and control the flow of information, goods, energy, etc and other kinds of resources between the manufacturer and the end-consumer, you are defining the 'logistics' of the process. This is exactly the point that defines the crucial difference between 'logistics and 'service response logistics.' Logistics is one among the many channels that decides the critical process of the management of supply and demand. Service response logistics deals with the concerns, the questions, the loopholes and the successes of these logistics-based networks and processes. To explain the differences more clearly, let us take a very simple example as sated below. Think about a hypothetical situation where the market force of demand starts exceeding that of the supply bandwidth. In such a scenario, you just have to ensure that the clients' needs are met at all costs. What has to be done is a three-step process. A. You need to increase your existing capacity. B. You need to get people hired and trained and then follows the supervision of the work, etc. C. You need to get an estimate on the number of clients your business unit is ready to cater to on a daily basis. This is otherwise known in business circles as a single term and that is 'Managing Service capacity.' In this case, each of these steps by themselves could have different metrics and logistics. The overall process that is pit in place is 'service response logistics' as you are arriving at an optimal figure of how many clients you can manage and you are meeting their demands. In step A, the hiring squad has a demand and the network providing suitable candidates to meet it are the suppliers. In step B, the trainers and the human resource managers are the suppliers and the candidates and indirectly the company in question itself are the end users. Other differences between logistics and service response logistics lies in the kind of challenges involved in each separate process. Some of the obstacles that service response logistic methods face are: Putting the existing service capacity to the best possible use and avoid any kind of wastage. Lowering the existing prices on all kinds of consumer products and services and planning promotions that will work their magic in the highly competitive market. Optimal utilization of employee services and using high-end technology to better the quality of goods and services gradually over a period of time. To provide world class care and customer service and create a good and sold base based on responsiveness and reliability. It also involves the keeping customers in the loop constantly and assuring them to believe in your level and quality of service. Customers need to be grouped together too as this helps understanding and sorting out the data when it is required to ease out any potential problems when service response logistics data is required. Some of the obstacles that pure logistics has are as follows: To assess and analyze the current market situation for a good understanding of how the market is behaving and the manner in which this could potentially affect businesses and manufacturing and production processes and costs. To create a blue print of the infrastructure of the business establishments and get to understand that moving your manufactured commodities in the chain is still a very small piece of the puzzle. To know whether importing and exporting goods would be viable for your company somewhere down the line. Therefore, these two terms should be though of and dealt with differently as the main end result and goal is to try and define processes and promotions that customers respond to well. The background processes like supply; production, manufacturing and sales are not the only problems that need to be taken into account. The integration of both these concepts is needed in today's market. References: International Logistics, Second Edition By Donald F. Wood Edition: 2 Published by AMACOM, 2002 International Logistics: Global Supply Chain Management By Douglas Long Edition: illustrated Published by Springer, 2003 ISBN 1402074530, 9781402074530 431 pages International Logistics By Donald F. Wood, Anthony P. Barone, Paul Murphy, Kin, Daniel L. Wardlow Edition: 2, illustrated Published by AMACOM Div American Mgmt Assn, 2002 ISBN 0814406661, 9780814406663 442 pages The Handbook of Logistics and Distribution Management By Alan Rushton, Phil Croucher, Peter Baker, Chartered Institute of Logistics and Transport in the UK. Edition: 3, illustrated, revised Published by Kogan Page Publishers, 2006 ISBN 0749446692, 9780749446697 612 pages Logistics in Service Industries By Inc Arthur D. Little, Arthur D. Little, Inc, Pennsylvania State University, Pennsylvania State University, Council of Logistics Management (U.S.) Published by The Council, 1991 298 pages Read More