Free Creative Writing About Logistics And Distribution Exam

- Coordination of the various logistics activities can be achieved in a variety of ways. Within the context of logistics organizational structure, explain each of the following:
- Process-based versus market-based versus channel-based
Process-based, market-based and channel-based are all generic strategies in the logistic. Under the process-based approach, logistics is managed as a collective of activities and a value added chain. It focuses on the efficiency in all logistics activities such as purchasing, inventory and manufacturing among others. The market-based need partial group activities in different business departments. It focuses on the interdepartmental cooperation when carrying out various tasks. These tasks are market oriented because they ensure customers receive the product. On the other hand, channel-based approach ensures dealers and distributors perform logistics activities together. It focuses on the channel orientation that emphasis on the external environment control.
- Strategic versus operational coordination
Strategic verses operational coordination ensures a certain level is achieved in the logistics within the organization. For instance, strategically is vital to put logistics at the organization hierarchy, especially in its headquarters, where authority can be maintained under a single unit.
- Centralized versus decentralized coordination
Centralized versus decentralized coordination ensures that logistics activities are carried out in a central location, especially in the organization headquarters. This has received a boost from the advancement of computer technology.
- Line versus staff coordination
The line verses staff ensures logistic activities are divided into line, staff or a combination of these two. Under the line activity, logistics are compared in terms of production and sales. Each worker has a job to perform, which is assigned to distribution. On the other hand, under staff organization, logistics activities are located under the headquarters of each unit and have advisory capacity.
- Discuss the relative importance of inventories in domestic and global logistics. In your response, consider the financial impact of inventory decisions on the strategic position of the firm.
The inventories can influence the choice of customer service level for the organization. In global inventories can be used as a strategic tool in dealing with currency valuation changes. Instead of holding cash, the organization may reduce its exposure to devaluation losses. The inventories in the global logistics are more complex compared to domestic logistics because they need creation of more awareness. The global logistics are accompanied by long transportation period and are more costly due to regulations, tariffs and competition across various countries. This is so because transportation time increases with distance involved. This makes the global logistics generate lower profits compared to domestic logistics. Therefore, larger inventories may have to be controlled both domestic and global logistics to bridge these time gaps.
- Describe and illustrate an integrated service provider. How does the concept of integrated service provider differ from traditional service providers, such as for hire transportation and warehousing?
The integrated service provider is also referred to as third-party providers that offer a wide range of logistics activities. It comprises of all activities vital to service customers. The regulatory changes in the transportation have made traditional logistics service provider to commence providing shared transportation services and warehousing. Thus, the integrated service provider promoted the radical change from single function to multifunction outsourcing. It offers services such as order entry to product delivery and variety of value-added services. On the other hand, the traditional service provider, which includes warehousing, and hire transportation focus on the particular functions. For example, the hire transportation includes carriers who specialize in transporting products in different regions. Similarly, the organizations providing warehousing services are traditionally considered as public warehouse and are used to offer specialized services to customers.
- Discuss the relationship between service level, uncertainty, safety stock, and order quantity. How can trade-offs between these elements be made?
The availability and speed are the most critical variables concerning the level of services delivered. However, they can be influenced by the uncertainties of replenishment cycles and demand. Therefore, in order to maximize the certainty in service levels, we are supposed to control safety stock at logistical facilities in various networks. Similarly, the large quantities of safety stock result in an increase of the total cost and inventory carrying costs. Hence, in order to trade-offs between these variables, there should be close communications between suppliers and customers which eliminates the uncertainty. This is so because when orders are given in large quantities by clients, there are chances that uncertainty will be reduced, therefore need of the safety stock will be alleviated. Similarly, the tradeoffs can be achieved when effective replenishment cycle stock is used between these elements.
- Why are the four primary service outputs of spatial convenience, lot size, waiting time, and product variety important to logistics management? Provide examples of competing firms that differ in the level of service output provided to customers.
These four primary service outputs are extremely vital to logistics management because they help the organization to maximize value. This is so because they establish the sequence of bringing inputs into business via supply chain. The spatial convenience is extremely vital to logistics because it helps to provide consumers with access to its products in large places, therefore decreasing shopping effort. Under the supply chain, the four primary service outputs ensure the customer requirements that are supported by logistical performance. They help organizations to create their platform based on client relationship, which increases commitment. They promote competitiveness because the organization is in a position to balance availability, operational performance and responsibility to all customers. They enhance a high level of commitment to maintain order performance, which requires no defects logistics operations. Therefore, the main importance of the four primary service outputs to logistics is that they enhance customer satisfaction and competitive.
Moreover, Samsung and Nokia are two competing firms that differ in the level of service output provided to customers. This is so because each firm differentiates its services in order to meet their customer satisfaction. They have started to specialize in the production of distinguished services to satisfy their customers and the four primary service outputs have helped them to achieve their objectives.