Logistics and Supply Chain Management - Essay Example

y method to achieve successful results in business performance, since it offers the basis for improving flexibility and maximizing the degree of firms’ responsiveness to external influences and changes in markets and demands. Finally, the issue of logistics in terms of functional and cross-functional organizational structure will be additionally discussed in order to reach conclusions upon the benefits attached to each case. The increased competition along with the globalization effect have undoubtedly set new grounds for conducting business.

This situation actually urges corporations and organizations throughout the world to acquire and maintain competitive edges and core competencies that will eventually provide the basis for success. Around the globe companies are striving for profitability; a fact that logically tests and underlines the necessity for cost-cutting, innovative solutions and higher margins or returns to be achieved. Markets are expanding and constantly developing, creating new needs and opportunities for revenues.

Nonetheless, the “price-wars” and the intense rivals among major players in all industries constitute a business environment that requires strategic approach on the part of corporations in order to maintain and sustain competitiveness. Supply chain management is a business area that has gained the attention of virtually all companies that attempt to increase efficiency gains through flexibility and responsiveness to changes in the market and the demand levels. For this very reason, strategic approach to SCM (supply chain management) has become integral part of the organizational planning.

Voss (1987) defines JIT as a disciplined approach that eventually aims at improving business performance through increasing productivity and eliminating waste. In more details Just-in-Time actually targets maximization of production in a cost-effective manner, on the one hand, and delivery of sufficient quantity of products/parts on the other