Skills requirement for the supply chain managers. Suggest that supply chain managers need strong technological and/or functional knowledge, good people skills, and common sense. CII-KPMG(2007) Survey on logistics skill gap in India. Identified variables that leads to logistics skill gap and proposed a path diagram showing possible linkages among causes that leads to skill gap. Dubey and Singh,2009 Logistics skill gap study in context to Indian supply chain sector.
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.
Third party logistics are not merely a means to cost efficiency, but also as a strategic tool for creating competitive advantage through increased service and flexibility. This is illustrated by the type of relationship the organizations enter into. Further (Skjoett-Larsen, 2000) talks about when to go for the third party logistics by analyzing costs of transactions through Transaction Cost
For instance, Logistics processes in conjunction with evolving information technologies are the key coordinating mechanisms that facilitate successful global management (Fawcett et al. ; 1993). The economies of scale that are so vital to the success of today's global policies can only be achieved by managing operations worldwide in a successful supply chain context and also be having proper logistics management. Another important factor is the cost. Rodrigues et al.
According to the Canadian Association of Logistics Management, it is the process of planning, implementing, and controlling the efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of meeting customer requirements. The NATO definition of logistics refers to it as "the science of planning and carrying out the movement and maintenance of forces" . In its most comprehensive sense, the term refers to aspects of military operations, which deal with the following spheres:- a. Design and development, acquisition, storage, transport, distribution, maintenance, evacuation and disposition of materiel. b.
The various processes of supply chain management are forecasting, production, scheduling, planning, order processing and customer service. Supply chain management also includes information system which is necessary to monitor all of these activities. The supply chain become more flourishing when there is advanced supply chain profitability. Supply chain profitability is the total profit shared from corner to corner all supply chain stages and
The collaboration of firms have helped them to better understand their suppliers supplier and customers customer, and at the same time who their rivals are and how to best serve their customers. Although, a few major setbacks can be lack of information, trust, transparency and who holds a higher hierarchy in decision making during collaboration however, with the use of modern technologies and regulating bodies, these are easily sorted out at timely manner and efficiency improved. Therefore, to understand the rhetoric of supply chain management, the nature of supply chain integration, the primary models and the advantages it offers, one has to explore the content of this paper. It furthermore spans the shortcomings and development of integration. Understanding the primary models of integration such as internal, backward, forward or complete integration will help organizations make the right choice to suit their
Domestic Global Transportation Requirements Variety of Transport Methods which can be evaluated and the cheapest transport method can be used Will be able to use multiple transport methods but not the cheapest transportation method can be used. Cost Factors Costs generally include technology, store facilities, logistics workers and transportation Same costs but have to consider tariffs when trading internationally, as well as additional government taxes and fee, exchange rates, border charges Management & Coordination Single logistics manager that oversees all facets of planning and executing the movement of information and goods Regional logistics managers whom coordinate geographically dispersed events requiring quick information sharing and decision making Supply Chain Partnerships Exclusive agreement to buy certain goods from a key supplier Different country regulations, geography and economic roadblocks definitely present more challenges in building loyal supply chain relationships Supplier Chain Power Can manage the suppliers and keep in line with the expectations of the company Global suppliers bringing in a lot of power and experience in negotiations overpowering the
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.