The importance of inventory savings depends on the magnitude of both the quantity reduction and the cost reduction. At what level of detail is the particular system used? Is the logistics budget a separate component within the overall organisation budget? At what level of detail is the logistics budget? Figure 3.1: Various type of costs in the logistics departments Source: Compiled by research Logistics department have its own separate and distinct budget or is the budget included as part of the budget of another discipline (e.g.
Distribution is determined based on customers wants and need of the product. It depends on when, where and the cost of the product they are demanding. Distribution is more than just dishing out the final product, it also involves managing the warehouse, and destination the right size and kind of transport for distribution. It will not be worthwhile to have an eighteen-wheeler to distribute one hundred small items. Hence the reason thoughts should be put into organizing transport.
• Using information to better sense and respond to disruptive events. • Incorporating flexibility into supply contracts to better match supply and demand. • Improving supply chain processes by including risk assessment measures. Fitzgerald (2006) informs that there is no perfect way that is written on how to achieve an accomplished supply chain. Best practices can vary based on the organization and in industry.
These decisions should enhance the supply chain value. These decisions are categorised into three phases: 1. Supply chain category or design: In this phase, company decides the structure of the supply chain for the upcoming years. It decides how will be the configuration of the chain, how to allocate the resources and the process that to be performed at each stage. Here, the companies may think the option of whether to outsource or perform a supply chain function in-house, the location and capacities of production and warehousing facilities, the products to be manufactured or stored at various locations, the modes of transportation to be made available along didderent shipping legs, and the type of information system to be utilised.
Finally, criteria included in the supplier selection process may frequently contradict each other (lowest price against poor quality). Therefore, it requires substantial judgment to assess the wide range of trade-offs present, to recognize all the alternatives available and to make a decision, which balances both the short- and long-term needs of an organization. It is importance to analyze the
Abstract Evolution of supply chain management and logistics domain has seen several factors, both global and local, interplay and interact with each other to refine the supply chain practices. This refinement of supply chain management and logistics practices are endless as newer and newer challenges emerge in the volatile and ever changing global market place. An effective supply chain can make companies profitable as well as adaptive to the changing market requirements. The key to smooth functioning of any such effective supply chain is based on the availability of information. Information technology (IT) provides the tools required to extract the information, process and analyses it and provide valuable insight which help in optimal decision
Coordinate with customer relationship management to identify customer articulated needs 2. Select materials and suppliers in conjunction with procurement 3. Develop production technology in manufacturing flow to manufacture and integrate in to the best supply chain flow for the product/market combination G. Manufacturing Flow Management The manufacturing process produces and supplies products to the distribution channels based on past forecasts. The production process has to be flexible to respond to market changes and Mass Customization must absorb. H. Physical Distribution This is the movement of a finished product / service to customers.
Business is getting increasingly sophisticated due to the huge concurrence of global markets. Each organization either small or big has to stick to a kind of structure and strategy within its operations to make projects successful. During the last decades, companies moved from Logistics Management in 1986 to Supply Chain Management. Today’s Supply Chain Management also includes production and distribution by creating a chain of information from suppliers to costumers through the company. Since the customers’ expectations and global markets’ demand are getting more consequent, companies are forced to invest in and to pay attention to their supply chain to manage both cost and customers’ requirements.
Logistics and supply chain Logistics is the flow of funds, materials, goods and even information about the tracking of courier delivery services. Logistics also consists of planning, implementation, controlling movements of the goods. Whereby it is being stored in containers and by transporting those containers that contains the goods to the outlets / consumers. Logistics is the main science of managing the whole process of delivering, providing, and maintenance of products. The importance of logistics management is to make sure deliver the right product to the right place and right time, so customers will satisfy of services.
That means that selection is the process of selecting the most efficient candidate from the group of other candidates through one or more selection methods. Obviously, it is evident that employee resourcing, recruitment and selection are related with each other because employee resourcing is concerned with the range of methods and approaches used by employers in resourcing their organizations in such a way as to enable them to meet their key goals. It therefore involves staffing (recruitment, selection, retention and dismissal), performance (appraisal and management of performance), administration (policy development, procedural). Recruiting is one of the crucial elements of the human resource activity in all the hospitality and tourism organization irrespective of its size, structure or activity. Due to the increase in the importance of service quality, there is a lots of pressure on the organization to select the right kind of individual.