Nobody downloaded yet

Logistics - Essay Example

Comments (0) Cite this document
Logistics Abstract Logistics refers to the organization of a series of operations that involves movements and storage of elements in a system. It, in business context, involves the organization of supplies and materials along the supply chain with the aim of facilitating efficient utility in the final delivery of goods to consumers at the end of a supply chain…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.2% of users find it useful
Read TextPreview

Extract of sample "Logistics"

Download file to see previous pages It, in a manufacturing enterprise, consists of raw materials, work in progress and finished products. While the transportation cost of inventory may not be significantly variant, there is a significant variation in the cost incurred in storage of inventory. While some of the costs involved in dealing in and management of inventory are accounted for in the benefits associated with having the inventory, some of the involved costs are considered as wastes. Inventory therefore has its advantages in the form of derived benefits while it is at the same time associated with a number of disadvantages that includes induced unnecessary costs. One of the disadvantages of inventory, and which induces costs is the processes that are involved in the flow of inventory in an organization. Goldsby and Martichenko for example explains the additional costs of managing inventory as a disadvantage that an organization has to endure in order to obtain a set of inventory and finally transfer them to their point of demand. Every set of inventory held by BMW will therefore induce an extra cost to an entity on top of the cost of the goods. The additional costs such as the costs incurred when the inventory is “received, housed, paid for, and insured” are examples of expenses that BMW is most likely to incur when dealing in inventory (Goldsby and Martichenko, 2005, p. 20). Such costs add up to operational costs, costs of sales and consequently reduce an organization’s profit margin. Maintain an appropriate level of inventory at a particular time is however associated with satisfaction of consumers’ immediate demand for commodities (Goldsby and Martichenko, 2005, p. 20). A stock of goods allows BMW to deliver commodities at customers demand instead of arranging for the commodities after an order is placed. Maintaining inventory is therefore associated with both advantages and disadvantages. Another advantage of inventory that may prompt for endurance of the involved costs of its maintenance is the security of continuous supply of commodities to BMW’s consumers. This is because suppliers are not expected to regularly avail commodities in the supply chain. Seasonality or disrupted operations may also cut off flow of commodities from a supplier. Similarly, disruption in supply chain activities such as transportation systems may limit access of commodities down the supply chain. Maintained inventory can therefore allow BMW to be able to absorb ‘short-term’ disruption in supply chain to ensure continuous supply of products down a supply chain. While it adds to the costs on an organization, it also facilitates customer utility by ensuring ready availability of commodities at consumers’ demand (Goldsby and Martichenko, 2005, p. 20). Inventory management through customer relation management and supplier relations management is another process that monitors and influences inventory decisions by establishing reliable links upon which planning can be made for a continuous supply chain with minimum inventory costs. This ensures that BMW stocks inventory for immediate future needs of its commodities, by the consumers. Similarly, developed relations with both suppliers and consumers identifies needs for value addition and facilitates reduction of costs in distribution through eliminating unnecessary costs (Lambert, 2008, p. 295; Cope and Brown, ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Logistics Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from
(Logistics Essay Example | Topics and Well Written Essays - 1500 Words)
“Logistics Essay Example | Topics and Well Written Essays - 1500 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document



...?Logistics Task: Outline I. Introduction II. Logistics Systems III. Components of Logistics Management IV. ICT Systems in Components of Logistics Management V. Benefits and Challenges of Using ICT Systems VI. Conclusions VII. List of References Introduction A control system that is flexible and effective has to be used in managing logistic issues of virtually all firms in different sectors. This is mainly because the objectives of supply chain are not met in many firms. There are fluctuations and disturbances that interfere with the supply chain coupled with irrational decisions that firms make at certain times (STOCK & LAMBERT 2001, p. 7). The system...
9 Pages(2250 words)Essay


...?Logistics Management Affiliation with more information about affiliation, research grants, conflict of interest and how to contact Logistics Logistics: An Introduction: While management is considered as an arts and science the logistics can be perceived as a part of management which include the flow of resources, mainly through transportation. The logistics of physical items normally consist of a series of information flow. The complexities associated with logistic activities need to be analysed and proper logistics management system must be followed for the success of any organization. Maintenance Planning: The...
3 Pages(750 words)Term Paper


...? Logistics are highly important paradigms of successful business strategy. In the current environment of increasing logistic costs due to rising prices of oil, innovative approach needs to be evolved to survive and maintain competitive advantage. The shipment of inexpensive products to United States so that they could still be sold at margin is critical element of business survival. While the cost of transportation logistics would be considerably higher due to rising oil prices in the international market, the businesses must make efforts to reduce that through collective decision making. The most realistic technique for businesses would be to come together and use single transportation...
1 Pages(250 words)Essay

The Culture Of An Organization

4 Pages(1000 words)Essay

Marketing principles

8 Pages(2000 words)Essay


...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...
4 Pages(1000 words)Essay


...Introduction For the last forty year a great number of studies on the of logistics effectivesness has been performed and a variety of research tools has been introduced into general use. Such an intensity of the reseach activity can be easily explained by the fact that well-tuned and efficient logistics system creates the competitive advantage for the company. An organisation wishing to implement integrated business logistics management, faces many great challenges, but can potentially reap considerable benefits. A well-designed and integrated business logistics management strategy ought to result in a sustainable competitive advantage. (Integrated...
9 Pages(2250 words)Essay


...technologies to measure the usability of the technology in their functions. Most consider that RFID can formulate their functions more proficient and put up a competitive frame in their marketplace. Particularly, logistics providers that are sophisticated in their RFID implementation joined (Tohamy, 2005). The majority logistics of providers present specified their trust that implementing RFID is not a subject of if, but when. With mainly expecting RFID to become a least consumer requirement, logistics providers look for to detain a first-mover advantage in implementing RFID-based logistics services. This will provide them a major competitive advantage in opposition to...
5 Pages(1250 words)Essay


...Logistics Table of Contents Introduction 3 Supply Chain Capabilities of Johnstons Enabling It to Attain a Competitive Advantage 3 Application of Johnstons Business Model to Companies in Other Industries 7 Conclusion 10 References 11 Introduction Johnstons of Elgin has been producing the premium cashmere and woollen clothing as well as accessories since the year 1797. The company became renowned due to its differentiation strategies to use the finest fibre strictly, i.e. cashmere in its knitted and woven products, which added to its competitive advantages (VisitScotland, 2014). The company’s mill is situated on the banks of the Lossie River, Elgin. From a broader understanding, the company has been able to attract its...
9 Pages(2250 words)Essay


...Logistics Table of Contents Introduction 3 Dimensions of Logistics Management 5 Importance of Logistics in Modern Organisations 7 Innovation in Logistics Management 10 Challenges and Barriers to Logistics in Modern Organisations 12 Conclusion 16 References 19 Appendices 22 Appendix 1: (Mind Map) 22 Appendix 2: (Research Log) 23 Introduction Logistics, in business context, generally refers to physical transfer of goods or services from the suppliers to the receivers. The rapid growth of international business process has eventually helped in expanding the dimensions of logistics business process by multiple folds. As a...
16 Pages(4000 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Logistics for FREE!

Contact Us