E-Logistics and International Supply Chain Management - Coursework Example

E-LOGISTICS AND INTERNATIONAL SUPPLY CHAIN INTRODUCTION Logistics is the process using which the companies operate and ensure procuring, maintainingand transporting the material and facilities in the most efficient manner (Stank, Keller, & Daugherty, 2001). With the advancements in information technology automation of the logistics function has been made possible. These include automated port and rail road operations, RFID tagging of material and ensuring efficient management of warehousing and inventory operations. The development within the field itself and removal of trade barriers continues the process of expansion within the industry (Flint et al., 2005). The international supply chain is a medium which initiates the global trade. The information technology relies heavily on the use of internet. Integrating the technological advancements will lead to the development of e-logistics (Stank, Keller, & Daugherty, 2001). The activities which describe the key logistic functions includes the following (Bowersox, Closs, and Cooper, 2009) The chart shown above explains that logistics deals with the order processing, inventory management, transportation, facilitation networks and warehousing which includes material handling and packaging. The management of all the components and elements for supporting logistics and supply chain function is essential for smooth running of the system (Flint et al., 2005). The details of the elements are shown below. (Lin, a) LOGISTICS MANAGEMENT PROCESS The logistic management is the connection between the suppliers and customers. This includes management of raw materials, in-process inventory and management of the finished goods. The management is responsible for planning, implementing and controlling which include customer satisfaction, demand forecasting, inventory management, procurement, packaging and warehousing etc. The inputs into the logistics include natural resources, human resources, financial resources and information resources (Flint et al., 2005). The outputs of logistics include the competitive advantage, time utility, efficient supply or movement to the customers and inclusion of the proprietary assets. The overall goals associated with logistics management are ensuring that the customers are satisfied and cost can be minimized. Managing the quantities, goods, places, time, condition and cost are the features why logistics is managed (Fugate, Mentzer, and Stank, 2010). Information flow within the system is the tool which makes it dynamic. This requires that the information, communication, cooperation and trust of the individuals are synchronized. With the application of the internet and information technology features the electronic data can be interchanged. Bar code and radio frequency identification are the aspects of the internet which allow the companies, suppliers and the customers to connect with each other (Fugate, Sahin, & Mentzer, 2006). Application of the e-commerce and e-business model through the use of internet impacts on the overall supply chain management (Gundlach et al., 2006). E-BUSINESS STRATEGIES AND CORPORATE STRATEGIES The e-business strategies of the system rely heavily on the understanding of the internal and external factors. Using these objectives is clearly defined so that the relevant techniques and tactics can be applied. Monitoring, controlling and acquiring the feedback are the actions which determine the relevance of the system which has been applied. The strategies set for the operations of the organization must be aligned with matching of the corporate strategies (Williamson, Harrison, & Jordan, 2004). The relationship between the corporate strategies and e-business strategies which the organizations must adopt is shown below. (Lin, b) The corporate strategy must be associated with the E-business strategy. This develops an understanding that the constraints and opportunities of the business must be connected with the objectives of the business. For management of logistics effectively the SCM strategy, marketing or the customer relationship strategy and information systems strategy must be connected so that the buying and the selling side of the business can be managed effectively. This shows the importance of e-logistics and can be considered essential for the businesses (Williamson, Harrison, & Jordan, 2004). The application of technology on the system so that efficiency can be enhanced is the components using which the operations and supply chain activities are made prominently beneficial for the operations of the business. The clear benefits of e-supply chain are cost saving and price reduction. The application of the process ensures that the role of the intermediaries is reduced so that the response and transaction time is effectively managed. The wider presence and enhanced visibility increases the popularity of the business. The overall choices and information of the customers improves the services of the business. The global penetration and reduction of barriers require that the use of information technology is maximized so that higher operational efficiencies can be acquired (Williamson, Harrison, & Jordan, 2004). BENEFITS OF USING INTERNET ON THE SUPPLY CHAIN The enhanced use of the internet determines application of supply chain strategies. Several problems associated with the operations of the business shows that the reality associated with the business is very different. The problems associated with the internet based strategies associate with the logistic strategies (Lancioni, Schau, & Smith, 2003). E-supply chain depends heavily on the collaboration of the strategic assets which define the supply chain strategies. The speed, cost, quality and customer services determine the integration of the policies which impact on the system. This enhances the visibility of information and enables sharing of knowledge throughout the system (Lancioni, Smith, & Schau, 2003). The activities and infrastructure of supply chain depends heavily on replenishment. Internet assists in controlling the small shipments and reducing the cost which increases the integration of information (Garcıa-Dastugue & Lambert, 2003). The steps which the organizations use through the application of the supply chain rely heavily on the tools which increase the visibility. The steps include connecting, communicating, collaborating and becoming visible. All this is made possible through the use of internet in managing the operations as shown in the image below: (Lin, c) The integration of internet in the supply chain enhances the scope as both the push and pull methods can be used. The dispersion of parcel globally to a larger geographical segment globally relies heavily in making the lead time shorter. The managing the systems using these processes includes the people, processes and technology (Lancioni, Smith, & Schau, 2003). The application of the internet on the international supply chain and managing the logistics with the application of this system is very important. This shows the benefits of application of internet on the system using which e-logistics can be managed (Roberts & Mackay, 1998). The E-Commerce Logistics process relies on the following features. Customer relationship management, information system, purchasing and supply chain management, sales and marketing, finance and treasury, point of sale and multi-channel management and transportation management are the aspects using which the e-logistics application is determined (Roberts & Mackay, 1998). (BSL, n.d.) REAL COMPANY EXAMPLES The significance of application of e-logistics and managing the global supply chain can be seen in the discussion below. The real world examples and cases will be discussed for determining the application of internet and its significance on the system. TESCO: The organizations which operate globally require that the products are made available at the lowest rates. Same is the case with TESCO which is a UK based retailer; it has implemented the technological changes on the system. For managing the global processes the retail stores have developed the Regional Distribution Centers. The cumulative sales process relies heavily on the Electronic Data Interchange (EDI). This shows the change in the processes with time and increase in application of internet on the system. Tesco has also developed a new arena; using which the entire e-commerce system has been managed. This is essential for the management of the supply chain system which is being applied within the system (Stones, M. (2013; GXS, n.d.; IGD, 2013). Horizon Foods Corporation: The entire logistics of this small scale specialty production organization which is operating locally relies on the use of this internet. Connectivity is the essential function using which the businesses interact. The promotional functions and inventory merchandising is done using this function of the business. Food brokers coordinate with the warehouses and arrange the delivery timings of the organization accordingly (Stock and Lambert, 2001). CONCLUSION The real life examples and the implementation which the organizations have done on the system for enhancing the efficiency are essential for managing the processes. The implementation of e-logistics and global supply chain is essential for managing the system. The need for connectivity through the internet is to speed up the process and ensure that maximum cost is saved. All these applicative measures are essential for the management of the systems using which the entire business processes can be applied significantly. The logistics, procurement and the entire supply chain process of the organization requires that the businesses are appropriately managed. This ensures connectivity and application of the process on the entire system. This essay shows the advancements in the technology the application of which benefits the management in ensuring that efficiency is attained. The entire business process of the organization relies on the application of internet. The connectivity of the suppliers and the customers lays the foundation of the development of the business. REFERENCES Bowersox, D., Closs, D., and Cooper, M. (2009) Supply Chain Logistics Management, 3/e, NY: McGraw-Hill College. BSL. (n.d.). Logistics and e-commerce. Available from http://www.bsl-log.fr/en/focus-on-e-commerce/logistics_and_ecommerce-50.php [Accessed 29 January 2014] Flint, D., Larsson, E., Gammelgaard, B., and Mentzer, J. (2005). Logistics Innovation: A Customer Value-Oriented Social Process. Journal of Business Logistics, vol. 26, no. 1, pp. 113–147 Fugate, B., Mentzer, J., and Stank, T. (2010). Logistics Performance: Efficiency, Effectiveness, And Differentiation. Journal of Business Logistics, vol. 31, no. 1, pp. 43–62. Fugate, B., Sahin, F., & Mentzer, J. (2006). Supply Chain Management Coordination Mechanisms. Journal of Business Logistics, vol. 27, pp. 129–161 Garcıa-Dastugue, S. J., & Lambert, D. M. (2003). Internet-enabled coordination in the supply chain. Industrial Marketing Management, vol. 32, no. 3, pp. 251-263. Gundlach, G., Bolumole, Y., Eltantawy, R., and Frankel, R. (2006). The changing landscape of supply chain management, marketing channels of distribution, logistics and purchasing. Journal of Business & Industrial Marketing, vol. 21, no. 7, pp. 428– 438 GXS. (n.d.). How Tesco uses the cloud to work with its suppliers. Available from http://www.gxs.co.uk/wp-content/uploads/How_Tesco_Uses_the_Cloud_to_Work_with_its_Suppliers.pdf [Accessed 29 January 2014] IGD. (2013). Tesco’s supply chain scoops two awards. Available from http://supplychainanalysis.igd.com/Hub.aspx?id=32&tid=7&nid=2924 [Accessed 29 January 2014] Lancioni, R. A., Smith, M. F., & Schau, H. J. (2003). Strategic Internet application trends in supply chain management. Industrial Marketing Management, vol. 32, no. 3, pp. 211-217. Lancioni, R. A., Smith, M. F., & Schau, H. J. (2003). Strategic Internet application trends in supply chain management. Industrial Marketing Management, vol. 32, no. 3, pp. 211-217. Lancioni, R., Schau, H. J., & Smith, M. F. (2003). Internet impacts on supply chain management. Industrial Marketing Management, vol. 32, no. 3, pp. 173-175. Lin, Y. (a). E-logistics and international supply chain management – session 2 overview of SCM. Course material slides Lin, Y. (b). E-logistics and international supply chain management – session 4 e-business and e-logistics. Course material slides Lin, Y. (c). E-logistics and international supply chain management – session 6 supply chain visibility and RFID. Course material slides Roberts, B., & Mackay, M. (1998). IT supporting supplier relationships: the role of electronic commerce. European Journal of Purchasing & Supply Management, vol. 4, no. 2, pp. 175-184. Stank, T. P., Keller, S. B., & Daugherty, P. J. (2001). Supply chain collaboration and logistical service performance. Journal of Business logistics, vol. 22, no. 1, pp. 29-48. Stock, J. R., and Lambert, D. M. (2001). Strategic logistics management (4th ed.). New York, NY: McGraw-Hill. (Case Study 1, pp. 734-735) Stones, M. (2013). Tesco pledges supply chain innovation and investment. Available from http://www.foodmanufacture.co.uk/Supply-Chain/Tesco-pledges-supply-chain-innovation-and-investment [Accessed 29 January 2014] Williamson, E. A., Harrison, D. K., & Jordan, M. (2004). Information systems development within supply chain management. International Journal of Information Management, vol. 24, no. 5, pp. 375-385. Read More