Literature Survey
Third Party Logisitcs
Logistics ,though looks simple at first look, is a complex operation and requires detailed planning, it has many facets which during cursory look get ignored. Logistics for an organization consists of inbound logistics and outbound logistics which then gets bifurcated as following:
• Procurement Logistics
• Distribution Logistics
• After Sales Logistics
• Disposal Logistics
• Production Logistics
Diving further into the facets of logistics, following figure shows how logistics is seen by various stakeholders of the process: Figure 1 Faces of Logistics
This facets of logistics help to understand how different stakeholders view Logistics in terms of their operations or working. Based on their views on
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Level 5: Companies have production network with integrated sourcing, planning, production, and distribution.
The companies which operate on level 3 through 5 of this logistic Chain, go for third-party logistics. The rationale of the companies behind going for the third party logistics can be explained by interpretation of definition given as follows:
“ Third-party logistics involves the use of external companies to perform logistics functions that have traditionally been performed within an organization. The functions performed by the third party can encompass the entire logistics process or selected activities within that process.” (Skjoett-Larsen, 2000)
Logistics for any organization has become a non-core activity. With the promotion of Theory of Core Competency by ( Prahalad & Hamel, 1990), companies have started to remove all the noncore activities from their operations to increase their efficiencies. This also meant that the companies which focused on logistics as their core business rose. With rise in both the events, it lead to the cooperation of both organization and third party logistics providers at various levels to fulfill their demands. All the different levels of cooperation formed strategic alliance between the companies which is defined as following by (Bagchi & Virum,
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These relationships have been further categorized by (Skjoett-Larsen, 2000) into three different categories:
1. Partnerships: Here the participating organizations try to maintain independence while collaborating to form efficient systems and procedures.
2. Third Party Agreements: Here there will be a formal agreement between participating organizations. The cooperations exist based on mutual trust and free information interchange.
3. Integrated service agreements: here the service provider takes part or whole logistics process of the host. There will be partial integration of information system to achieve cooperation.
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
These three archetypes will be further explained in the next three paragraphs.
Inbound Logistic Process Target is a retail store selling goods worldwide through its retail stores located at various part of the world. It purchases goods from its suppliers and ship those goods to its distribution centre and retail outlets. The continuous supply of merchandise is a tough job as the Global purchase is a difficult process to manage when; sources of supply, regional economies, and governments change in international purchasing can lead to disputes and
The potential consumption of Company X services will be dependent on various target markets. It is important for technology-enabled operations to be deployed to improve efficiency and limit consumption. Company X must develop a positioning strategy which is value-based. This strategy will implement the foundation of providing logistics solutions to consumers. Company X must provide customer solutions which are industry specific.
In order to determine the whether an outsourcing activities would have a positive or negative impact an evaluation of the activity should be undergone. This evaluation examines the required coordination, strategic control, and intellectual property characteristics of the activity (Chase & Jacobs, 2013, p.444). The required coordination aspect examines the difficulty to complete the activity with limited interaction due to geographical locations. Outsourcing an activity that would result in a large amount of back-and-forth exchange would not be wise to proceed (Chase & Jacobs, 2013, p.444).
The method includes breaking the company into five "major" and four "support" activities, and then looked at each one to see if they give a cost advantage and quality advantages. Primary Activities Inbound logistics Nikon has been working with a number of suppliers around the world. They establish a flexible system with other suppliers
From the standpoint of ICI, All the above points would be relevant. Synergy occurs
Here 70% of our business is done with military so in military terms logistics means the organization of moving, housing and supplying troops and equipment’s. No doubt logistics is an important activity as there is a process for doing a work and there must be proper coordination and cooperation. Lack of proper coordination means, high chance of getting errors in work. This case analysis focus on providing the recommendations to the top management to make sure their activities are going smoothly in the market and they can be ahead from their competitors in this competitive world. In easy words, the organization wants to improve their delivery to their customers.
Bean should enter into an agreement with all its vendors detailing the various terms and conditions relating to conduct of business, transparency in dealing, confidentiality, minimum business commitment etc. This will enable L.L.Bean hold vendors accountable for non performance on their (vendor’s) part. Such an agreement will eliminate any ambiguity or grey areas in the business relationship between L.L.Bean and the vendors. Step 2: Joint business planning Vendors are an important partner in scripting the success story. It is prudent to include vendors during the strategy formulation and business planning process so that they can orient their goals in line with L.L.Bean’s objectives and goals.
This new system is often referred to as the "flexible system of production" (FSP) or the "Japanese management system” (Mansfield; 1992).flexibility have been the dominant language of organization and economic change. “Flexibility within the market and between networks is facilitated by new forms of supplier relationships. This has been associated with the Japanese, derived just in time (JIT) system. This depends on a set of relations between large corporations and suppliers normally characterized by tightly controlled multiple sources through layers of subcontractors. In this system it
b) Participation in Facility Financing: A service provider who participates in the financing of an activity is in a better bargaining position than one who does not. c) Choke Points in the Port: Existence of Choke Points in the port which facilitate slowdowns of port operations provides power that is often employed to extract concessions from port
TASK IV: PARTNERSHIP IN PROJECT MANAGEMENT Partnering is a project approach designed to allow the construction process to be performed within an atmosphere of mutual trust, commitment to shared goals, and open communication among the partnering members while working in harmony toward mutual goals in order to avoid claims and litigation and establish a win/win management approach. For the complex and large-scale Atlantis project, the contractually associated construction partnering between Laing O’Rourke and NORR along with various other members like Rockwell Group, WATG, EDSA, helped to create working relationship among all of the team members based on mutually agreeable plan of cooperation and teamwork to improve productivity. The main objectives of Atlantis project partnership included reducing project costs and schedules, eliminating change orders and claims, improving communication by developing
Woodmere Products Case Study The case study is about time-based logistics. HomeHelp wants Woodmere to collaborate with it in an exclusive distribution using time-based logistics. Woodmere has to submit a proposal for implementing that. The following are the answers to questions about this collaboration.
The different type of structures (1) Functional – each portion of the organisation is grouped according to its purpose. (2) Matrix - ‘’ creates project teams that cut across traditional functional departments, instead of highlighting the role or status of individuals, it gathers together a team of specialists with the objective of completing a task or a project successfully ‘’ . (3) Divisional – It is the grouping of workers on the basis of products being produced, followed by the functional structure. There are two types of divisional structure , (a) Product structure (b) Process structure (4) Geographical – It is the grouping of workers on the basis of regions, followed by the functional structure and , (5) Hierarchical structure which has been adopted by Ritz Carlton. It shows the different levels of hierarchy, span of control and chain of command.
Supply Chain Management (SCM) department encounters a number of different stakeholders. Many different working relationships take place within each individual work on, from colleagues to clients, stakeholders, and suppliers. The internal supply chain that delivers the service is complicated and requires the co-ordination and co-operation of individuals and teams who have different skills and priorities. Hence, understanding stakeholder needs and working effectively with them is critical to the success of the procurement team. Cleland (1995: 151) recognised the need to develop an organisational structure of stakeholders through understanding each stakeholder’s interests, and negotiating both individually and collectively to define the best way
Modern Stores The interviews were taken and the data were collected and we had also taken help from other articles from academic journals for an overview over the data. At the later step, we wanted to understand that what actually influence the performance of the Cold Chain Logistics. And regarding the elements which is able to manage the Cold Chain Logistics most effectively in a company.