Distribution/Logistics Management - Case Study Example

This paper will discuss a case study regarding Distribution/Logistics Management. Distribution/logistics management of University Abstract The aim of this paper is to select a Distribution/Logistics Management position at a company as a case study. We will describe the role of Distribution/Logistics Management and the expectations of a person in that position. We will state the problematic situation and we will use the techniques in Distribution/Logistics Management along with detailed analysis and data to resolve the issues in the company which is our case study. Introducing the Company Alcoa Fastening Systems1 "is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation, and industrial markets, bringing design, engineering, production, and other capabilities of Alcoa's businesses as a single solution to customers. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation, and industrial markets, bringing design, engineering, production, and other capabilities of Alcoa's businesses as a single solution to customers. The company has 116,000 employees in 44 countries. In 2006 it was 10 times safer to work for Alcoa than it was in 1991. Alcoa makes a very sustainable product: almost 70% of the aluminum ever produced is still in use, equal to 480 million metric tons (529 million tons) of a total 690 million metric tons (761 million tons) manufactured since 1886. Every day, worldwide, Alcoa: Mines 86,300 tons of bauxite and 27,300 tons of coal Refines 41,000 tons of alumina Smelts 9,575 tons of aluminum Recycles 2,300 tons of aluminum Manufactures 8,810 tons of aluminum products Produces 166 million closures for beverage and food containers Assembles wire harnesses for 20,400 vehicles Generates 96,000 MWH of electricity Purchases $27 million in goods and services"2 Distribution/Logistics Management Description/Role and Activities A logistics manager is a person who manages the processes involved in a supply chain and is responsible for it. He is in relation to many work groups for example retailers, customers and manufactures. All the work is expected from a logistics manager is to order all the production processes so that customer finally gain enough satisfaction with the product or service purchased. The role of a distribution manager coordinated with logistics management skills is controlling the stock and market, control on warehousing and transportation affairs and having control on the structures and making sure that everything is in place and works in order. One important key that plays a vital role in logistics management is Information Technology. Logistics managers make the most of Information Technology to forecast too complicated behaviours of system as complex as stocks or project completion times. They also take the advantage of information industry in predicting the costs and evaluation or processes inside the structure of large companies.3 A person in this position may be assigned to any of the following tasks according to the need of the company which is hiring a Distribution/Logistics Manager. Here are some of the roles of a Distribution/Logistics Manager: "monitoring the quality, cost and efficiency of the movement and storage of goods; coordinating and controlling the order cycle and associated information systems; analyzing data to monitor performance and plan improvements; allocating and managing staff resources according to changing needs; liaising and negotiating with customers and suppliers; Developing business by gaining new contracts, analyzing logistical problems and producing new solutions. When managing warehouse or transport staff, the role may also include: implementing health and safety procedures; managing staff training issues; motivating other members of the team; project management; setting objectives. More senior roles in logistics may involve: planning projects; using specialist knowledge, such as mechanical-handling systems, to provide consultancy services."4 Problem Statement Alcoa Fastening Systems is currently looking for a Distribution/Logistics Manager who can "analyzing data to monitor performance and plan improvements" for the company in 2006/07 financial year. Alcoa Fastening Systems requires a report which provides the evaluation of the activities and performance of Alcoa Fastening Systems. The report would be based on the Alcoa Fastening Systems plans and visions and their regional economic strategy. The report should discuss the achievements of the company in the requested financial year period and makes the delivered outputs and the total performance of the company clearly. Here in this paper, we will aim to the most vital achievements of monitoring the performance of Alcoa Fastening Systems needed by the managers of the Alcoa Fastening Systems since the all the measurement cannot be included in this paper. The Report The table below indicates some of the most important achievements for Alcoa Fastening Systems. In this table, the performance is demonstrated against the minimum expectations. As the report shows, Alcoa Fastening Systems has been successful in creating job opportunities for the country which is currently facing with un-stabilities of financial market and the economic impacts of the 9/11. Other achievements are also clear and demonstrate that Alcoa Fastening Systems has been successful in achieving its minimum goals and objectives. The record shows that the performance of the Alcoa Fastening Systems has steadily improving. Analysis shows that the company has had an economic growth equal to 4.2 percent comparing to the 2005/06 financial year. The report also stated that the company has had an enormous improvement in formations and growth rates, also availability in business finance and development in key competitive sectors. They have supported the sectors with high growth potential which includes their economic strategy, for example creative industries, biochemical, necessary materials and advanced engineering and this still is and would be key strategy for the company. Other important factor is the improvements in innovation and research issues in Alcoa Fastening Systems. They have massively developed their innovations in design, quality of goods and services. One of the best results for the company has been to build some parts of the newly introduced Airbus airplane, the A380. The company is also willing to achieve better results since more innovations is equal to more share in the market. Maximizing the opportunities to participate in globalization as an important economic growth factor also has helped the company to achieve their goals. They have emerged new technologies and looking for new opportunities which lead the company toward investments. The report also indicated that Alcoa Fastening Systems has been paying massive attention to ICT and developing the digital content. Their ICT strategy is to help related companies to use the digital information systems and the developments of the digital content. The company has done a major effort in marketing and is still in the process of the ICT strategy but the data analysis and reports, indicate that the company has been successful n meeting the minimum requirements. They have also developed many access points in the area of the company which make it easy for engineers to communicate and share their experiences through modern pc tablets and PDA systems. It can also easily help the managers to get an updated report on the events on the company. There are more positive reports gathered by logistics management techniques which for more information, we can refer to the appendixes or find more information on the Alcoa Fastening Systems website. Conclusions Distribution/Logistics managers play a vital role for large companies such as Alcoa Fastening Systems since their job is to monitor the overall performance of very complicated structures and they need to forecast and predict the events which are hard to estimate. There are more expectations of a person with this position which we stated above but as we also discussed before, it depends on the problems or needs of the companies to ask the logistics managers to do which part of their job. The most common positions for such managers in the industry is quality monitoring, business development and project management and dealing with soft systems which are of interest to be discussed in future because of their vital role and real case studies that shows their important role for success in businesses. More information from the company can be found in the reports in the appendices below. Appendices References Alcoa Fastening Systems, Global, About Aloca, viewed on November 12, 2007. < http://www.alcoa.com/global/en/about_alcoa/overview.asp > Distribution/logistics manager: Jobdescriptionandactivities, prospects.ac.uk, viewed on November 12, 2007. Performance Monitoring and Evaluation, viewed on November 12, 2007. < http://pdf.dec.org/pdf_docs/pnaby215.pdf> Performance Management Overview, opm.gov, viewed on November 12, 2007. < http://www.opm.gov/perform/overview.asp> Read More