Logistics and Supply Chain Practices - Coursework Example

Critical Analysis Name: Critical Analysis Course: Tutor: Institution: Date: Part 1: Logistics and supply chain practices The global market competition strategy and landscape is changing in the market. In this regard, organisations and industry stakeholders have been required to develop competitive edges in order to retain market controls and success in the long run. One such applied aspect is the use of sustainable and improved logistics and supply chain management. As such, as Munson (2013, p.25) noted, the modern day supply chain management aspects has incorporated new aspects to align the operations with the current status. This analysis evaluates some of the key supply chain aspects such as continuous improvement, strategic supplier relationships, customer relation as well as agile supply chain. Continuous Improvement The concept of continuous improvement involves a process of developing and enhancing improvements in organizations systems. Currently, as Shukla (1996, p.215) argued, organisations are face with increased global competition challenges. In this regard, they are faced by the need and the responsibility of developing systems that reduce on the overall costs while increasing returns. Therefore, the process of continuous improvement is based on developing and increasing the overall operational efficiencies in the market. This can be illustrated by the evaluation study conducted by Fryer, Antony and Douglas (2007). The authors evaluated the concept and the role of continuous improvement in both the public sector as well as the manufacturing industry. In this review, the evaluation established that although the two industries have different objectives in the market, the role of continuous improvement in both markets cannot be underscored. However, it established that both industries have different critical factors that necessitate continuous improvement (p.503). On one hand, the evaluation establishes that the public sector relies on the need to establish efficiency in the market and the need to deliver increased services quality to the society. In this case, changing society needs in the market as well as shifting societal dynamics serves as the critical success factors for continuous improvement in the public sector. On the other hand, an evaluation of the manufacturing industry establishes that increased quality needs as well as the need to reduce the overall production costs per unit necessitates the role of continuous improvement in the market. Therefore, based on this reviews, as well as the argument established by Naveh, Katz-Navon and Stern (2011, p56) reveals that through the application and the inclusion of the continuous improvement aspects in an organization increases the overall organizational success and efficiency in the long run. Thus, it is established that organisations applying this aspect have increased organizational efficiency as well as reduced costs per unit of production values in the long run. Strategic Supplier Relationships In the wake of increased global competition and the increasing need to reduce on the overall costs of production organisations are faced by the need to reduce on the overall management costs. Currently, as Lamb, Hair and McDaniel (2012, p.47) argued, the need to execute all the marketing mix variables has emerged as a new market success evaluation in the market. This is particularly the aspect of place in the mix, which involves the concept and aspects of delivering products of the right quality at the right time and to the right destination. One of the principals through which organisations achieve this approach is the use of the just in time (JIT) approach. However, in order to effect this strategic approach success in the market, suppliers’ management is imperative. This led to the emergence of supplier relationships in the market. The application and rationale for this aspect can be evidenced through the study as developed by Siew-Phaik, Downe and Sambasivan (2013, p.193). The evaluation conducted a case study of the manufacturing industry in the Malaysian market. In its analysis, the review examined a sample 228 companies drawn from the Federation of the Malaysian manufacturers association. Through the use of questionnaires, the evaluation established that through the use supplier relationships, the organisations registered increased market success. In this regard, manufacturing organisations in the market have resulted to the application of increased suppliers’ management. Among the established aspects and approaches in supplier management, included the use of partnerships and strategic alliances through which the reviews use management for increased market success and the use of just in time success. Customer Relationships The global market across industries has experienced increasing number of suppliers. This is especially with increased globalization that involves the emergence of both domestic and foreign investments across markets. Therefore, in order to develop influence as well as ensure sustainable retention of these markets, organisations have to develop sustainable consumer relationships. Mckenzie (2008, p.157) argued that in the creation of consumer relationships, organizations require the delivery of consistent quality in the market. In this case, the evaluation established that quality and consistency were key among the development of sustainable consumer relationships. Further, Lagrosen (2005, p.427) conducted an evaluation study through which the role of customer relationship and involvement in new product development is evaluated. In this regard, the review developed a sample of three small and medium business enterprises as well s three large business enterprises as its case studies. The evaluation focuses on established the difference between products success in customer involvement as well as in those that do not involve customers. On one hand, the evaluation established that organisations that used cross functional teams with customer representations resulted to the development and introduction of appropriate products that reduced market resistance as well as stimulating market influence success. Therefore, the evaluation concluded that through increased customers’ relationships and the subsequent involvement in organizational decision making as well as strategies formulation increases organizational competitiveness in the market. However, as Woodcock, Broomfield, Downer and Starkey (2011, p.253) noted, the development of customer relationships and alliances has its share of challenges. In this regard, among the identified challenges are increased costs. In this case, the inclusion of customers in the decision making process not only slows down the decision making but also increases the overall costs of making the decisions. Agile Supply Chain The Agile supply chain is a recent development in supply chain management practices. As Bruce, Daly and Towers (2004, p.154) described it, it a process through which organisations advocate for and incorporate increased flexibility in their products and services execution and delivery to the consumer base. In this regard, the concept developed and evolved from the concept of lean supply chain management. This was especially after the establishment that a lean supply chain strategy lacked the desired flexibility. In order to expound and establish an empirical evaluation for the agile supply chain concept, Maleki and Machado (2013, p.241) conducted an evaluation in the automotive industry. In this regard, the research objective targeted at establishing the merits and gains accrued from continued practice changes from lean through green supply management to agile supply chain management. In its analysis, it establishes increased gains in the industry including reducing costs of production as well as societal support due to reduced environmental pollution. Moreover, the evaluation establishes that through agile supply chain management, the automotive industry has exponentially developed and increased flexibility and spread across the globe. However, as Sabri and Shaikh (2010, p.33) pointed out, the application and use of agile supply chain management practices has its limitations and challenges. This is especially in markets with low consumer purchasing power or in times of economic downturns where increased production as well as stocking of products in anticipation of unexpected demands would lead to unnecessarily increased production costs that are actually the main essence of the development of the new supply chain practices all discussed above. Part 2: Article Summary Ding, M,J., Jie, F., Parton, K.A., & Matanda , M.J., 2014, "Relationships between quality of information sharing and supply chain food quality in the Australian beef processing industry", The International Journal of Logistics Management, Vol. 25 no. 1, pp. 85 - 108 Background The supply chain management concept is receiving increased organizational management recognition and focus. In this regard, a majority of organisations have invested in developing sustainable and competitive supply chain values in the market. In this light, Ding, Jie, Parton, Matanda (2014) developed an empirical study on the Australian market. In particular, the evaluation developed a specific focus on the Australian beef industry that is one of the largest industries in the Australian market. In this regard, it evaluated a range of supply chain factors implications on quality in the processing industry. Among the evaluated aspects included strategic alliances, customer focus, information sharing and quality implications on the overall industry success. The study was guided by series theories in supply chain management. On one hand, is the lean supply chain management theory. The theory as Perez, de Castro, Simons and Gimenez (2010, p.56) argued is based on the need and role of reducing the overall supply chain costs. In this case, the theory holds that in order to increase overall organizational strategic gains on reducing overall costs of production per unit output, organisations should focus on lean management. For instance, they should reduce the amount of stock held to reduce on the overall stock carrying costs. Moreover, the use of JIT production principles ensures reduced machine idle time as well as the elimination of unproductive supply chain activities. Further, the evaluation article is based on the supply chain model of supplier management. In this case as in an evaluation of the German manufacturing industry Szwejczewski, Lemke and Goffin (2005, p.287) argued, organisations should strive to develop supplier relationships in a bid to appraise and develop them. Supplier relationships and appraisal systems enhance increase delivery quality. In turn organisations on time delivery are enhanced as well as improving the overall quality aspects in the market. Finally, the research paper bases its theoretical argument on the role of logistics and information sharing and flow in an organization. As such, it adopts the theoretical argument that information flow and management in an organizational supply chain is an imperative success criteria in an organization. Purpose and Research Deliverables In order to evaluate the empirical practical applicability of these theoretical arguments in the Australian beef industry, the research adopted a primary data collection approach where 600 survey questionnaires were distributed and issued to the beef industry processors. The use of the primary data collection approach was a major move to ensuring the research validity and reliability. As Mooi and Sarstedt (2011, p.29) argued, the use of the primary data collection approach in research enables the researchers to collect up to date information in the market, This is unlike secondary data that is normally historical and thus often out of date and applicability in the long run, due to changing market dynamics in the global market. Therefore, this review establishes that the adoption of the primary data collection approach though expensive and time consuming, significantly boosted the research credibility and reliability. Findings The study analysis establishes a range of implications in the market. On one hand, establishes that the nature and extent of relationships has a direct implication on organizational success. In this case, the supplier strategic relationships in the beef industry were linked with increased on time delivery. In this regard, the processors argue that through strategic relationships and alliances with their suppliers reduced the lead time. This is the actual wait time between the time the organisations request for a procurement consignment and the delivery period. A reduced lead time has a range of merits and implications on any organization. On one hand, it ensures that the procured services and products are delivered on time to the organisations to allow for efficiency and success in the organizational response to consumers. Increased organizational JIT application allows for the reduction of overall production costs in the beef processing industry. Thu promoting substantial and affordable beef costs in the Australian market. In this case, in the beef industry, the suppliers include the individual farmers as well as the associations and groups developed by the organisations in the market. In addition, the evaluation established that a customer focus has direct implications on the products quality in the beef processing industry. In this regard, a consumer’s focus in the beef processing market involves the development and processing of various beef products that are consumer oriented thus increasing the overall influence and success of the industry in the market. Most importantly of all these successes, the respondents argue was the nature and quality of information in the supply chain. In this case, the evaluation established that the development of strategic supplier relationships in the industry relied on the extent to which information flowed between the processors and the suppliers as well as between the processers and the consumer base (p.91). On one hand, communication with the consumers can be categorized as through marketing by the processors as well as product reviews and survey feedback by the consumers. On the other hand, supplier relationships is based on orders placing by the processors as well as the expediting period and practices in the market. Consequently, the review established that efficient and successful information flow across the supply chain starting from the suppliers mediated by the processors to the processed beef products consumers played a critical role in promoting and facilitating its eventual products quality increase (p.94). Weakness Although the research study evaluation was successful, the study has its share of weakness that might have reduced the applicability and depth of acquired data. In this regard, the study only used the beef processors as the sample base. As such, it failed to include the suppliers as well as the industry consumers. Consequently, all the obtained data was inclined and purely on the processors perception. The suppliers and consumers as evidenced in the above arguments play a crucial role in the development and retention of such communication and information flow management. Therefore, it would have expanded its research sample to include the suppliers and how such information flow enables them deliver quality raw materials to the processors. Moreover, it could have included he consumers in order to develop an evaluation on how the presence of an efficient information management system and flow improves their quality perception on the beef industry. In this regard, as Ming and Ing (2005, p.637) argued, it is imperative to note that the consumers’ quality perception is at times different form the organizational perspectives. Therefore, although the beef processors feel quality has been improved through increased information flow, the consumer perception and feelings could be different. Thus, based on the above evaluation, this review establishes that the study findings should not be perceived as an industry response but interpreted with respect to the processors perspective to enhance their credibility as a generalization of the findings would lead to information misrepresentation. Implications and Recommendations The study findings and conclusions bring into play a number of issues not only in the Australian beef industry but also across other industries in the market. One of the implications is the developed argument for the need to develop and reinforce appropriate and ideal organizational supply chain information systems. In this regard, in order to promote organizational success factors in the economy, it is imperative to promote their information circulation and flow in its supply chain. Rajaguru and Matanda (2011, p.179) argued that information flow is an imperative aspect in logistics. This is often developed and established through the developed of relationship systems. One of the approaches through which the industry and others across the globe can influence their supplier related information flow is through the application of supplier relationship management systems. These are electronic systems through which the organization links its operations with the supplies. In this approach, a re-order level for each product is established. Under the re-order level case, this is the value at which a new order should be re-established for the replenishment of the product. In this regard, the ventures should establish electronic systems through which electronic systems are generated. In this regard, the organizational inventory management systems should be linked with the suppliers systems to allow for the generation of the automated orders. Moreover, this approach, the system should allow for increased follow up and expediting the system. As such, the system should allow the organisations and the suppliers to interact and share information on the process and extent to which the order processing progress stages in the process. Moreover, such a system allows the suppliers to evaluate and monitor the organisations inventory management. This is a strategic approach through which the suppliers can manage and increase supply chain agility in the market. Increased supply agility by the suppliers’ enables them establish unexpected changes and market growth in the market. Therefore, this allows the organizations to develop systems and approaches to accommodate any unexpected demand and product utilization in the organisations. On the other hand, information management and efficiency can be promoted and enhanced through the establishment of supplier relationship management systems. These are electronic systems through which the respective customers can raise their demands onto the organization. Moreover, the system allows the organization to profile and segment the consumer base based on their previous orders and products needs. Under this approach, the organisations can update respective consumers on product changes such as the introduction of related or complementary products that the consumers could be interested in. Through this approach, organisations increased their overall influence as well as consumer satisfaction rates in the market. On their part, the consumers acquire a platform through which to receive regular updates on their order processing progress and expected delivery time. Moreover, such systems provide the consumers with a rare platform through which they offer reviews and feedback on products and services offered by the organization for future improvement. Therefore, this review argues that based on the study evaluation findings, organisations should consider increasing their capital and infrastructural on IT based supplier and customer relationship management systems. Conclusion Based on the above reviews, this evaluation concludes that with the alteration of the inclusion of the fact that the findings are on a processors perceptive, the findings represents the case and scenario in the Australian beef industry. However, due to he established weakness, the review recommends that into the future and in order to increase the overall industry perception, researchers should conduct studies including all the stakeholders in its sample base. References Bruce, M., Daly, L. & Towers, N. 2004, "Lean or agile: A solution for supply chain management in the textiles and clothing industry?", International Journal of Operations & Production Management, vol. 24, no. 1, pp. 151-170. 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Woodcock, N., Broomfield, N., Downer, G. & Starkey, M. 2011, "The evolving data architecture of social customer relationship management", Journal of Direct, Data and Digital Marketing Practice, vol. 12, no. 3, pp. 249-266. Read More