Introduction
Logistics describes all the integrated activities required to move products through the supply chain. The model of sustainable logistics entails strategic decision levels that help in planning, implementing, and regulating the movement of products, services, and related information from the production process to the point of consumption. Besides, it focuses on operative logistics decisions to enhance the supply network around three main factors: the efficient flow of surplus products, the flow of information regarding consumer demand and expectations, and the time required to respond to the demand from the supply source.
Numerous factors have initiated the need to develop concepts in logistics management to create sustainability in the supply chain. Primarily, there are many potentially contradicting demands in the supply chain. Examples include the presence of consumers whose needs and preferences have to be met, reactions from organizations to prove their sustainable management concepts, and management influences that Integrate the required prices of raw materials to prevent the shortages in raw materials due to restricted resources. Most importantly, organizations have to formulate cost-effective ways to distribute their products in the integrated supply chain. Due to these conflicting factors, effective logistics models have to be adopted. The supply chain logistics models help to create a flexible, adjustable, and competent physical distribution systems that aim at resolving these conflicting contradictions between the surplus value production and the end customer consumption.
Efficient Distribution Networks
A well-performing logistic system operates on an efficient distribution system since it is a major determinant of how effective product supply will be. The distribution management system facilitates and coordinates various components that link together various partners in the supply chain to serve the need of the end-customer. It incorporates logistics processes in planning, implementing, and regulating the movement of goods to conform to the customers’ requirements. Achieving efficiency in distribution management logistics involves improved efficiency, the modes of transport, close coordination of various transport modes, and improved collaboration of players in the supply chain such as the suppliers, producers, distributors, and the consumers. All these logistics aspects determine the degree in which an organization will regulate its surplus value production in regards to the levels of consumer consumption.
Information Flow
The personified roles of logistics system in the supply chain are well defined to facilitate the synchronized flow of information from the production system to the consumer. Through an information technology logistics system, a quick sharing of demand and supply information is designed to ensure an increasingly accurate picture that reflects the nature of production processes and levels of consumer demands. Integration information systems provide an increasing competitive advantage necessary for regulating surplus value production while meeting the consumer demands in the marketplace. It is a binding factor that links the supply chain processes.
Competitive Advantage
Competitive advantage is a critical aspect of the logistics system. This concept aims to fulfill the demand of the consumers by supplying the right products, which have to be delivered at the right time and also at a competitive cost, and in the form that meets the consumer needs. The logistics advantage is therefore created in the form of such competitive factors like quality product availability in the market, prompt delivery of goods to consumers, as well as providing an affordable cost for the products.
Quality product availability involves all those processes in the supply chain that ensure consumers get the right products, and that meet their needs. In logistics situations, it entails choosing the right quantity of the products in relation to customers’ demands. Prompt product delivery measures the length of time consumers have to wait to receive a given product. Efficient logistics systems create a responsive supply chain process, which helps to regulate surplus value production and minimizes any risk of outdated stock in the system. From the supply chain point of view, products demand competes specifically on the basis of cost/price. While the cost is low, the demand and consumer consumption are high, and this difference regulates the surplus value production.
New Contradictions In The Supply Chain
Creating efficient distribution systems, enhancing information flow, and establishing competitive advantage are logistics aspects that help to resolve various contradictions between surplus value production and consumption. However, new contradiction always arises in the supply chain.
Customer Loyalty and Customer Satisfaction
The attitude of customer loyalty is essential to the behavior of customer satisfaction. However, while improved customer satisfaction defines a long-term customer loyalty, the two concepts may create contradictions. The logistic challenge appears where an organization has to support the existence of customer loyalty by designing and providing quality of service. The idea is that service quality is much harder to create than the product quality and price.
Uncertainties In International Logistics
Uncertainties in the international logistics have forced organizations to adopt new supply chain reality of expecting the unexpected. Organizations are required to respond to the current volatility and geopolitical risks. Geopolitical risks entail various structurally increased government security measures and screening. Also, logistics of making the global economy a reality is also experienced. Thus, organizations are required to develop new risk management approaches that take into account the heightened and changing risk profile.
Capitalism Contradictions
Various internal contradictions within the flow of capital in the supply chain have created global crises. The need to stimulate endless growth in the world economy, the continuous exploitation of the natural resources to its limit, and the tendency toward a universal alienation create intense contradictions. According to Harvey, though capitalism has managed to extend the demand of surplus value production to cover nations and consumers outside of its range, this limit is unlikely to extend further in the medium term future. The global financial crisis that has been experienced recently is a major hindering factor.
Conclusion
Bibliography
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