Logistics, People, and Operations in Organization - Essay Example

Logistics, People and Operations--Problem Solving in Connection With Real Organization Introduction: Logistics can be defined as having the right quantity at the right time for the right price.1 The transporting of the goods, services, products, and people from one place (place of manufacturing) to the other place (place of delivery) is a main constituent of logistics. Logistical support is required for both marketing and manufacturing. The integration of different services will be involved in logistics. Information, transportation, inventory, stocking the goods, handling the material and packing are the services that are integrated in logistics. Usage of machinery is inevitable in very field or sector. In the case of logistics instead of creating the system of machines, a system of people is created. This will make the system of machines work with out any obstructions. Logistics is mainly of three types. It is business logistics, production logistics and military logistics. In this paper we deal mostly about business and production logistics. Business logistics involves supply chain management. This is because the products or services start from the supplier and reach the end user. Here inventory management, purchasing, transportation, storing, organising and planning will be integrated. The knowledge about the resources about the above topics will be combined by the managers to coordinate the resources in the organisation. This coordination will streamline the flow of the material through the network and the other coordinates the sequences of resources regarding the flow of the goods and services. In production logistics the logistical process is internal, whereas in the business logistics the process is external. This involves the flow of goods and services within a industry or an organisation, which have branches located in different areas. The machines in the work places are fed with right product due to the production logistics. The streamlining of the flow of the goods and services through a process constitute the production logistics. This logistics is responsible for the increase of productivity of an industry. Research Method: Examining and discussing various stages and methods in logistics were taken as the research method. Logistics is supposed by many as just storing the stocks and delivering the goods. This understanding is not enough for implementation of the logistics, either that of business or production.1 Transport and warehousing logistics is the fifth largest sector that is providing employment in the states like Chicago and California in USA. Career in logistics: The initial discussion is about understanding the qualifications needed for the success in logistics. The personnel in this sector need the skills in in-time inventory, management practices and the capability of recognising the demand for material movement. One significant factor to be understood in this sector is ever growing need of work force. Though the number of opportunities is growing in all the sectors, the work force needed for a particular work is being decreased. It is not the case with the transportation and warehousing logistics. Customer service satisfaction: The requirement of staff in that sector is increasing every day. The reason is that the customers are demanding more speed and quality in transportation and warehousing respectively. The qualifications and experience for the personnel in this sector will be different from other sectors. The required skills, the career opportunities were different in nature. The personnel need the skills regarding the storage of more goods in as much less space as possible and the transportation of goods in right time to right place. The goods or the products that are to be stored and transported will be different in nature. They range from fruits to vegetables, glass to crockery, and machinery to spares. Each type requires a different type of storage and mode of transportation. The transportation of the two wheelers is different from the transportation of four wheelers. The transportation of vehicles will vary from the transportation of electrical appliances. These types of transportations will completely differ from the transportation of liquids like oil, petrol and diesel. Though in the modern period there are pipe lines for some fuels, the transportation and storage of them cannot be ruled out. Issues in management of quality in integrated logistics: Smaller logistics companies do not deal with multi disciplinary storage and transportation. The bigger and corporate companies like DHL are capable of dealing with multi disciplinary logistics. So in this paper, DHL logistics will be taken as a client in the section, which involves a bid for the project of logistics from DHL. The following personnel are the external need of the sector: Truck drivers for heavy/tractor trailer, industrial truck & tractor operations, personnel for dispatches, customer service representatives, truck drivers for light/delivery services. The internal staff is the personnel having technical skills regarding the storage and transportation. The staff having knowledge about the cold storage, ordinary storage was responsible for the storage of the food and non food substances and articles. The personnel having technical experience regarding three types of transportation were required for the transportation wing of the logistics. In both storage and transportation wings of the logistics, the personnel having different technical expertise are required. This requirement is separate from the requirement of the external requirement like drivers and customer service representatives. Findings: It was found that the projects of either individual companies or the administration should focus on the companies that are deprived of quality logistics. The clients who need both business and production logistics can be searched. The project report submitted as a host must meet the needs of the client.1 The client selected must have necessities regarding modern logistical operations. The packing, storing, loading, transportation will stream line the logistical processes of the client. So they search for the hosts who offer different logistical operations with quality and expertise. The clients are demanding more IT capability from their hosts who offer logistic services.2 The IT capability, though incurs more costs initially, it enables a host to submit the project easily and to afford to offer more communication regarding the flow of goods from the starting point to the end user. This communication makes the work faster and more care was taken by the staff on duty. The host who have online facilities regarding the logistical operations will be preferred by the client like DHL Logistics Company. When a consignment was stored in a ware house the status of the goods must be available on line to the client. For this purpose a website must be developed and the details must be fed into the site at the intervals of 1 hour. This makes client to feel in touch with the host. Though the goods were in transportation the status of the transportation must be available to the client online. To submit the project to the client it must be reflected in the report that the culture of the host resembles that of the client. DHL Logistics Company boasts about its technology and the promptness in delivery. It acquired Exel Company recently. The significant factor that should be reflected in the project is that the differentiating factor that makes the company chooses this student as host. For this purpose the project must inform the client about the expertise in storing different types of goods that range from food products to non food products along with electrical, electronic, and automobile products. This needs multi disciplinary expertise. These details must be informed to the client in the report submitted, when bidding for the project was done. Many major companies are outsourcing their logistics work to concentrate on quality of the product. Even the corporate logistic companies are outsourcing their works for different hosts who work from different destinations. This enables them to reach destinations in different countries by receiving the logistical services of the host in that country. In this manner of outsourcing the services of both non logistical and logistical companies will expand overseas. The overseas transportation demand air transportation for quick service and sea transportation for cheap services. The goods which are having larger sales, than can be sold by decreasing profit percent in order to get more profit in less time must be transported through air lines. In this case the profit margin also must be more to make them transport through air. The goods regarding electronics and automobile spares can be transported by planes if their order is bulk in nature. Matching supply with demand: The food substances can be packaged, stored and transported from the manufacturing point to the end point. In these days even the packaging is being outsourced. The food processing companies are concentrating on finding newer processed foods by outsourcing the packaging duty to an external logistics company. This type of outsourcing will not reveal the formula of the product to the external company but the finished product can be made packaged by that company. In some products like floor cleaners, shampoos and other type of cleaning materials the packaging work demands the information about the level of corrosive nature of the liquid that is to be packaged. In that case the companies prefer the hosts who are more reliable in not leaking the information to other companies and clients. For this purpose the host must have a reputation for maintaining the business secrets. So to be a host for DHL logistical company one must acquire modern IT facilities coordinated with transportation facilities, eg; GIS. This is apart from the expertise offered in packaging, storing, transporting the goods and products. Meeting the host and determining the projects: It is important for every company to determine the projects outsourced to the hosts. DHL Logistics Company was involved in three types of logistics regarding the transportation and storage of varied products. They have to contact the three types of hosts. The hosts who deal with surface transportation and air transportation must be different. Airlines can be contacted and an agreement regarding the transportation of the DHL goods can be made. In case of road and sea transport also different firms must be contacted and agreements on transportation of goods must be drafted and implemented. The agreements must specify the frequency of transportation, the time taken for the transportation for a particular distance and the charges for the transportation that depend on the distance. If the goods are not delivered to the end point in time, the payment to the company must be deducted or the host company must be fined for the loss of business due to delay in delivery. The charge must decrease in proportion as the distance and the quantity of goods to be delivered increase. This enhances business on both sides. So in this context three different host companies must be contacted and the agreements regarding the frequency of transportation trips, charges based on distance, time taken for the delivery according to the distance must be specified in the agreements. By engaging the three types of hosts for three types of transportations different type of customers and their needs can be dealt. By having hosts for both air and land delivery, there must be option that the road transportation host must collect the goods from the airports and must deliver them to the places where air port facilities are not available. Similar arrangement must be with the case of sea transportation. These types of arrangements can be mentioned in the agreements with the three types of hosts. This mentioning will increase the coordination between the three types of hosts and the client company (DHL) can monitor the transportation of the goods at various points and places. Environment of logistics: The company must be able to reduce the annual logistics costs. This increases the returns on assets as less assets will do more business. Reviewing choices, matching potential student with potential "client: By reviewing choices by comparing the potential of the host with that of the client the kind of handling the equipment can be decided. Instead of using the distribution centre number of companies are planning to outsource these things to third parties. But it must not be the case with the DHL. The reason is that the strategy involved in this paper is that the storage must be done by DHL Company and transportation can be outsourced. For this purpose at every starting and end points, storage facilities can be established. The company having storage facilities at every point in the network of transportation need not depend on the transportation hosts for the distribution facilities. The inventory can be deployed by client company DHL. The client company like DHL must concentrate on full line distribution centres instead of partial line distribution centres. This makes minimum the discrepancies in delivering the goods to the end points. Analysis: The analysis of the project will determine the outside help required. If the company is having a licence regarding the logistics, the licence can be used by host companies on paying some royalty to the client or by decreasing the charge for the goods delivered. In case of outsourcing entire transportation wing of logistics, the company can limit itself by taking only the logistics licence regarding the storage and distribution but not for transportation. This will decrease the operational charges and the host transportation companies will work in tandem with Client Company in distributing network. If the company want to manage the distributive network on its own, it must enter into agreement with the land transport host regarding the transportation in distribution. The host company must have its presence in all the starting and end points of DHL. By selecting the option of maintaining the distribution centres DHL can maintain its brand quality in offering logistics operations.1 The hosts will work in tandem with the client company. This gives very less chance of occurring errors in the flow of goods from starting point to end point. If the company decides to outsource the distribution centres also there will be lack of coordination between client and the host and the quality of logistics will be damaged. This leads to the drop in the business. If the company decides to outsource every thing there is a chance of loosing business to the host companies as DHL management may have only minimum amount of contact with the clients. This is capable of making the clients of DHL deciding to select the hosts of the DHL for their logistical operations. Bidding for the project and the identification of the tasks and devising of a plan: In the bid for the project the host must show the client the licence regarding the logistics network optimisation. The software and the administrative licences regarding the logistical operations and the planning must be submitted in the report. In strategic analysis and integration planning model, the storage and transportation operations can be integrated with software by having a data base of the goods stored and the number of days, the goods must be stored.2 But in the case of DHL the storage facilities were maintained by the company. So while applying for the project in DHL the available project is transportation. This needs the transportation of the goods from the airports and seaport to the destinations far away from the ports. This also involves the operations that are to be made in tandem with the distribution network of the DHL.1 The plans that are to be submitted to the client for bidding the project: 1. the plan of transportation of goods from airports and sea ports to the distribution and storage centres of the DHL 2. At distributions and storage centres, the host company staff must coordinate with the DHL staff and the goods that are to be stored must be sorted out from the goods that are to be delivered. 3. After that the goods to be stored will be taken care by the DHL staff and the goods to be delivered will be handed over to the transportation host. 4. The transportation host will then deliver the goods to the particular end points. Conclusion: The client DHL Logistics Company can outsource its transportation operations and can maintain the storage and distribution operations on its own. This enables the company to keep the contacts with its clients intact and makes it possible the monitoring of the transportation operations successfully by GIS facilities and internetworking software. The hosts who want to bid a project regarding the logistical operations of DHL can bid for air, sea and land transportation services differently as the company prefers so. Though there is need of signing the different agreements regarding the three types of operations there is a chance for the company deciding the mode and model of transportation on its own by selecting the host similar in culture to it. If the company selects host who offers the three types of transportation, the selection of host similar in culture will be difficult. References: 1. Wikimedia, 2006, Logistics, Wiki pedia, ,electronic, 2-12-06, http://en.wikipedia.org/wiki/Logistics 2. The work force boards, 2006, Transportation, warehousing and logistics work force, The work force boards, ,electronic, 2-12-06, http://www.workforceboardsmetrochicago.com/upload/WBMC_TWL_Rprt.pdf 3. Report, 2006, The black country co worker approach, The black country co worker approach, ,electronic, 2-12-06, http://www.lifelonglearning.co.uk/iag/pdf/03iag.pdf 4. Allan, 2006, As DHL CEO John Allan Speaks with Global Institute of Logistics Editor Stephen Tierney, ,electronic, 2-12-06, http://www.1888pressrelease.com/press-release-klrw22575.html 5. Insight team, 2006, Logistics Network Modeling Project Assures Higher Return On Assets, Insight, ,electronic, 2-12-06, http://www.insight-mss.com/_whitepapers/file=Paper_Improving_ROA.htm 6. Grace Lin, Terry friesz, 2005, report on conference, 2005 IEEE International Conference on Service Operations and Logistics, and Informatics, ,electronic, 3-12-06, http://www.ssglobal.org/2005/ProgramAbstract.pdf 7. ICAR team, 2006, Project implementation plan, INDIAN COUNCIL OF AGRICULTURAL RESEARCH PROJECT IMPLEMENTATION UNIT - NAIP, ,electronic, 3-12-06, http://www.naip.icar.org.in/downloads/pip.pdf 8. Molloy Vaughn, 1999, Moving 25 million tons of food to Africa, The schiller institute, electronic, 3-12-06, http://www.schillerinstitute.org/conf-iclc/1980s/1985_mvaughn_africa.html 9. Author not mentioned, 2006, planning guide, , ,electronic, 3-12-06, http://reedevents.reed.edu/images/pdfs/meeting_planning_guide.pdf Read More