Logistics and Supply Chain Management Practices - Essay Example

University: Logistics and Supply Chain Management Practices. Name: Date: LOGISTICS AND SUPPLY CHAIN MANAGEMENT PRACTICES Introduction In assessing organization performance, one of the most critical factors that determines the efficiency of operations within the organizations is the manner in which logistics and supply chain activities are handled. Invariably, for any organization to attain sustainable competitive advantage over its competitors, there is need to streamline its supply chain through ensuring that relationships and partnerships with suppliers are honored (Bidgoli, 2010, p.73). Further it is critical for any organization seeking to attain considerable competitive advantage to ensure that it maintains high standards when it comes to information sharing. This should be reflected in raising the level of engagement with suppliers and other stakeholders in the logistics operations to ascertain that in case of any delays or postponements, the information is communicated to the right parties in good time to avoid unreliability and ultimately financial loss to the business. Analysis of Logistics & Supply Chain Management Practices In order to maintain competitive advantage, organizations have to develop an understanding of the delicate balance that has to be drawn between the whole supply chain and individual organizations (Gattorna, 2008, p.56). This is to mean that organizations have to cater for the needs of the supply chain management as well as those of the logistics management. In practice, logistics and supply chain management impacts on supply chain performance. One of the most important practices in supply chain management is maintaining customer relationships. It is important that organizations embark on proper communication with the customers to avoid any misunderstandings. Moreover, for any organization to thrive in the current competitive business environment, it should request for feedback from its customers. Feedback is a pivotal tool that should be used by the organization in performance improvements and helps immensely in retaining current customers (Fernie, 2007, p.29). In addition to this, all the necessary information should be made available to the suppliers so as to ensure that the goods delivered are quality demanded. In this regards, there should be proper, clear and consistent information sharing strategies at every stage in the supply process so as to ensure that the preordered goods are delivered and at the right time (Bidgoli, 2010, p.83). One of the areas that logistics ad supply chain has been crucial is in the retail business. The delivery of goods from the producers to the wholesalers, retailer, and finally to the final customers is undeniably a process that requires high level coordination (Vogt, 2005, p.67). Logistics and Supply Chain Management in Retail Industry In the retail industry, responsiveness in the logistics and supply chain ultimately results in competitive advantage if prudently carried out. The ability of a retailer to bring new products to consumers faster than the competitors is an invaluable strategy that is a surefire tactic to increase sales (Grant et al., 2013, p.63). Additionally, a retailer should ensure that the goods are brought on time and the goods delivered are of the right quality and of the volume is that demanded by the customers. This greatly contributes to delivery dependability and helps in retaining current clients while attracting new ones. This illustration of retailers points out the fact that the major goal of the logistics and supply chain management should not be basically to maximize profits in the operations but rather, to maximize on the value of the operations. Logistics and Supply Chain Management in Manufacturing Industry In analyzing the manufacturing sector, it is equally clear that the same principles applied in the retail sector bear significance. As manufacturing companies strive to remain competitive, they have to engage in massive reduction in the cost of materials. This has prompted most industries to engage in importation of raw materials from countries where they can be obtained at relatively lower prices. In effect, this undoubtedly presents industries with logistics and supply chain challenges. This process requires development of a chain that handles the transportation and warehouse operations smoothly to ensure delivery of goods to the industry. Reduction in cycle time in the manufacturing process, coupled by short lead times will definitely result in a more responsive supply chain (Kersten, 2011, p.91). Information quality in the whole process is a critical success factor in supply chain. This means that a manufacturing industry should critically analyze and eliminate any inefficiencies identified in the supply chain. These inefficiencies range from the technologies involved to the human labor. Essentially, the supply chain in the manufacturing industry, as in other industry, as deemed as effect as the extent to which it goes in eliminating waste, reducing small expenses which might be less obvious, and generally looking beyond the costs involved (Cousins, 2006, p.106). Logistics and Supply Chain Management in Food Industry Food wholesalers and retailers also face the arduous task of creating a very efficient supply chain. Any organization that deals with the sale of perishable goods and services is required to have in place a very efficient supply chain. Strategic partnership relationship is also required so as to ensure there is continuous supply of the food products to the wholesalers who make the goods available to the retailers and ultimately the final consumers. Recommendation To make the whole process of logistics and supply chain management more efficient, it is important for businesses to ensure that expansion process should be carried out prudently without compromising the quality of service. As companies expand, there is a critical need to ensure that the supply chain is maintained at high level efficiency to match up with the needs of the customers. Moreover, communication is required in management of logistics and supply chain. As emerging trends in businesses gear towards globalization, organization should strengthen their public relations department with the logistics and procurement departments to ensure that a positive organization image is maintained with the suppliers and clients. Further, concerted efforts should be made to fasten the supply chain processes though embracing modern technology in core activities in the supply process such as procurement. CRITICAL ANALYSIS OF FERRY’S ARTICLE Introduction. This article embarks on assessing the performance of supply chain and supply chain practices and their effect on the Australian beef processing industry. The article provides rather important insights on the intrigues that surround the supply practices in the beef industry in the larger Australian market. The article articulates the issue of the beef industry, intimating the high export rate of beef in Australia which ranks as number four in export earnings in the country. The fact that Australia ranks second in the category of beef exporters definitely means that the success of the beef industry is dependent largely on proper coordination between supplies of goods from the large scale beef farmers to the meat processors all the way to the final consumers. Analysis of Key Variables in Australian Beef Industry The article maintains that even with the large export volumes, the beef processing industry is predominated with only a few companies involved in processing. In conducting a critical analysis of the supply chain management practices in the Australian Beef industry, it is important to analyze the various aspects that are involved in the supply chain process. 1. Strategic Alliance in Supply Chain Management First, the article delves into the intricate details involved in the practice of strategic alliance. This involves forming constructive partnerships that improve the relationships between the buyers and the suppliers. From the analysis presented in the article, it becomes increasingly clear that as the level of communication, cooperation, and coordination between the cattle processors and the producers increases, there is a positive impact on the efficiency of the supply chain. While the article still urges more research to be done on strategic alliance, the facts presented by the writer ultimately indicate that a strategic alliance between the various stake holders, that is manufacturers, suppliers, and logistic services do indeed provide the Australian Beef industry with competitive advantage over its competitors. This, coupled by the fact that the majority of the Australians engaged in the industry have operational know how in beef farming makes the industry to achieve significant progress and thus remain competitive. 2. Information Sharing in Supply Chain Management. Another key factor that the article presents to address further on the link between efficiency of the supply chain and quality of information sharing is on customer relationship management. The article’s approach to customer relationship management is based on the need for there to be marked consistency between these two parties. The article insists that there should be close contact between the customers and the business in order to promote communication channels in the supply chain through understanding the desired quality by the customers. However, the article fails to clarify the basis for arguing that the quality of the produce will improve by merely maintaining consistent communication between customer and the business. This is because it does not stress on the need for ensuring that the communication channels within the organization are effective. In implementing organization change, it is the duty of management to deliberate on issues facing the organization. Therefore, there is need the businesses to ensure effective vertical communication channels are maintained. The article is, however, quick to assert that for any tangible results to be achieved in the business, the information and feedback provided by the customers should be relevant and kept up to date so as to address issues that practically affect market dynamics. Moreover, the need to keep employees motivated is a critical success factor in any organization seeking to draw consistent results and improve supply chain management in the organization (Blanchard, 2011, p.47). In addition to this, the article augments that information sharing s a core objective and criteria for there to be an effective supply chain management system. While this is generally acceptable to be true, the article introduces a more critical approach to the concept of information sharing by describing the role of the internet in developing the supply chain process. The article argues that the use of internet in streamlining the procurement process has been a paradigm shift and attributes this to the massive penetration of information technology. In this regard, the article develops a positive relationship between adoption of integrated information sharing techniques and effect on performance of operations in the beef business. 3. Information Quality in Supply Chain Management. Another important factor presented in the article is the on the level of information quality. Undeniably, information shared between processors and producers should at all times be credible, reliable, and be sufficient enough to guide processors make a reasonable decision and negotiate effectively. The quality of information is a critical guide in the beef industry. It is important that a processor gets adequate information about, for example, the carcasses and this should be willingly provided by the producer. The article emphasizes that for the information conveyed between the stakeholders in the beef industry to be deemed to be of high quality, the information has to complete and accurate. The factor of timeliness in giving out information cannot equally be ignored. Therefore, if the information on the type of meat is provided by the producers to the processors in a clear concise and timely manner and free of any bias, the end results will definitely be high quality beef delivered to the market. This should, therefore be expected to have positive impact on the supply chain in the beef industry. The core essence of high information quality is that it helps to retain customers even in highly competitive markets (Cetinkaya, 2010, p.84). Analysis of Relationship between Key Variables in Australian Supply Chain. After carrying the research, which primarily involves distributing questionnaires to the beef processors, the results revealed are rather consistent with what would be expected in such a wide and well developed market. The findings from the research dictate that there exists a positive relationship between the variables and the ability of the beef business to produces high quality food products. Based on food quality, which is the performance indicator used in the supply chain in the beef processing industry in this article, it is clear that building strategic alliance with the various stake holders in the beef industry has a positive impact on beef quality and ultimately improves supply chain performance. These stake holders include the retailers, meet processors, and the cattle producers. Further, from the findings, it becomes clear that information quality has had such a significant impact on the food quality. In the analysis of the data, It is revealed that quality information enables the processors and retailers to gather the necessary facts that aid in the decision making process. The essence of information sharing is also echoed in the findings. In as much as sharing information within the supply chain is seen in some industries as inappropriate, the findings in this report strongly indicates the ability to share and access data in the supply chain constitutes the fundamental basis of an effective supply chain. The author is quick to note that information quality is the most important component as it guides in the decision making process and directly impacts on the performance of the supply chain. While techniques such as Video Image Analysis Scan technology have been adopted to aid in delivery of more accurate feedback with regards to yields from carcase, the article does not clearly define to what extent these techniques have borne success and what more should be done to improve the changing needs on quality assurance and auditing especially in the red meat organizations in the wider Australian market. Conclusion. In conclusion, the article projects that with improved integration amongst meat processors, producers, wholesalers and retailers, Australia’s beef industry is bound to gain competitive advantage over is international rivals such as Brazil and USA. Ultimately, for there to be tangible and consistent results, the Australian beef industry should embark on practices that will make the beef supply chain more effective and accommodative of the changing market dynamics so as to continuously enjoy competitive advantage and economies of scale. Recommendation. A major recommendation that would improve the overall practices in supply chain management in the Australian beef industry would be concentration on the customer feedback. The fact that this industry stretched across a vast geographical landscape means here is massive feedback from the customers on how better the delivery of services can be handled. In addition to this, continued adoption of Information Technology in the industry will have great long-term benefits in improving efficiency of the procurement process. Additionally, the beef industry should consider formation of an association whereby beef processors, producers, and wholesalers should meet regularly to deliberate on issues affecting quality, quantity, and the long term objectives of the beef industry at both the national and global level. Bringing on board the various stakeholders would definitely enhance information quality and build long-term competitive advantage. 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