In recent years, supply chain has become strategic need of the company to perform consistently in turbulent market. The supply chain has evolved over the years as a strategy, however it took almost two decades to understand the evolution of supply chain from traditional transportation practices to an integrated approach which binds all the functional competencies, information’s flow and fund flows from one end to other ends which connect to remotest links which one firm have never realized. The intense competitions among firms, depleting natural resources, environmental concerns, political instability, crumbling economies and increasing inflation rates have forced the firms to aligned and adapt themselves in the tune of global needs of the
Supply chain Management Professionals stated that logistics management is supply chain management program to achieve part and controls to meet the efficiently and effectively to bring forward and converse flow of goods, services and storage needs of customers between the point of basis and the point of consumption and related material. In order to create plans for executing logistics activities which mainly at operational level, quantitative logistics management consist of activities such as inventory management, routing, and production planning necessary. The value of these plans will represent, because they improve logistics activities, they often result in cost savings or other positive effects of the implementation. Logistic planning which is a core activity in most quantitative logistics management activities. With this, logistics of the logistics planning is necessary to obtain the relevant information and the ability to convert this information into a smart plan.
Rodrigues et al. (2005) stated that logistics is one of the largest costs involved in international trade. Logistics costs incurred in supporting global operations and penetrating global markets can be significant and can offset the benefits of global economies of scale (Fawcett &Clinton 1997). Proper logistics management will eventually help reducing and eliminating unnecessary cost within the supply chain. Another essential factor of logistics management is the seamless performance of multinationals worldwide.
It links all the partners who include vendors, carriers, third party companies, information system providers in the chain, and all the departments within the organization. The customer is the key to both communicating and quantifying the supply chains value. Supply chain refers to the wide range of functional areas which include supply chain management related activities such as transportation, warehousing, inbound and outbound and inventory control. Sourcing, procurement and supply management are also fall under the supply chain management umbrella. The various processes of supply chain management are forecasting, production, scheduling, planning, order processing and customer service.
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.
The primary sector does not make any significant contribution to the GDP. But Singapore Island is situated along important shipping routes in South East Asia. Key parts of economies in Singapore are trade and commerce. Then, The government also invests in education. So that human capital and a skilled workforce contribute to the prosperous economy in Singapore.
It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. Thus supply and demand management is integrated within and across companies by supply chain management. While logistics focuses ion activities carried out in a single firm, supply chain uses the same processes but views these processes for multiple forms. There are several points of overlap between lean production and supply chain as indicated
3.THEORETICAL BACKGROUND OF THE STUDY 1.1 MEANING OF SUPPLY CHAIN Supply chain consist of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain includes not only the manufacturer and suppliers, but also transporters, warehouses, retailers and even customers themselves. Within every organisation, such as manufacturer, the supply chain includes all functions involved in perceiving and fulfilling a customer request. These functions include, but not limited to, new product development, marketing, operations, distribution, finance and customer service. Supply chain is dynamic and involves the constant flow of information, product, and funds between different stages.
It is important to note that information plays a very crucial role in an effective supply chain integration process. The nature of supply chain integration The nature of supply chain integration is disseminated into four primary models namely: The cross-functional process integration, backward integration with valued first-tier suppliers, forward integration with valued first-tier customers and the complete forward and backward integration. Internal, cross-functional integration process Internal, cross-functional process integration identified as the most important of supply chain integration according to Fawcett & Mangan (2002). This integration process covers the activities within the organization that ends with the provision of goods to the customer. It also involves multiple functional areas in the company such as marketing and sales, production and manufacturing, and logistics unit to fulfill its
What is supply chain management and what role does it play in the effective running of a business in the 21st century? The supply chain is a worldwide network of traders, factories, storerooms, distribution centres, and retailers through which raw materials are developed, transformed, and delivered to customers. Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage mainly achieved by using information flow and logistic activities. It represents a mindful effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.1 The purpose in establishing supply chains is to minimise the flow of raw materials and completed products at each station in the workshop in order to improve productivity and cost savings.