Assignment Logistics Management
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Added on 2020-03-23
Assignment Logistics Management
Added on 2020-03-23
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Running head: LOGISTIC MANAGEMENT1LOGISTIC MANAGEMENTStudent’s nameDate
LOGISTIC MANAGEMENT 2IntroductionIn any business organization, there are core functions that are; marketing, productionand accounts and finance. These functions are carried out within the productiondepartment, marketing department and the accounts and finance departments. Logisticsdepartment play a vital function in coordination activities of these core functionaldepartments (Bhatnagnar and Teo, 2009). This report analysis how logisticmanagement is used to ensure that there is smooth running in the operations of thebusiness organization. It also discusses the effectiveness and efficiency of the ordercycle and the inventory management of business organization and givesrecommendations on how to improve on the effectiveness and efficiency. The reportdescribes these issues using Dell Company as an example of how the logisticsmanagement can be used in the effective and efficient running of the business. Dell Computer Corporation is a US company that was founded in 1984 by Michael Dellinitially dealing with the manufacture of personal computers. The turning point thatenabled Dell to penetrate the market was by using a strategy known as build-to-orderwhereby the customers ordered the personal computers directly. The orders were madethe shipped to the clients within a week of placing the order. This made it grow and sellits products to other countries outside the US such as the UK and others parts of theworld.Over time, Dell explored to other products other than the personal computers. Now, Dellmanufactures, repairs, sells and provides personal computers, data storage products,servers, computer software and peripherals, televisions, printers and cameras. Dell also2
LOGISTIC MANAGEMENT 3sells electronics manufactured by other manufacturing companies. They havecustomers in virtually every part of the globe and carry their business internationally.Dell's major competitors include Toshiba, Acer, Apple, Sony, Hewlett-Packard (HP),Samsung and Lenovo.Interfaces of logistics and core functional areasLogistics management is the effective and efficient management of every day activity increating the finished service or product of a company. The aim is to plan andsynchronize all the actions needed to accomplish anticipated level of services deliveredand quality at lowermost probable cost (Gunaseakaran and Ngail, 2003, Li et al., 2006).The eventual objective of every logistics system is to please the client by creatingconnections of persons at all points in the firm to the market.The greatly competitive market for clients and capitals, logistics performs a significantfunction, by making products and services available to customers, promote greaterlevels of effectiveness and efficiency in performing the activities, with the end gettingresults that are better (Fugate et al. 2010). Logistics also are a chief element ofdifferentiation in the market (Bowersox et al., 2002). The performance of logisticsdepartment in any organization has an influence on the general performance of a firm(Larson et al., 2007). The logistics department closely interfaces with the other organization’s departmentsuch as the finance and accounting, production and marketing.The interface betweenthe logistics department and the Finance and accounting department: preparation ofbudgets, discussing contracts with transporters, and handling shipment involve the3
LOGISTIC MANAGEMENT 4finance and accounting staffs. However, numerous businesses struggle apportioningcargo and transport costs correctly to the correct department or locations. Therefore,the logistics department becomes important in informing the finance and accountingdepartment about the costs to be assigned to each section where the products aremoving until they reach the customer.The interface between logistics and marketing: When products are completed, theyhave to move from the industrial unit to the warehouse or client. Logistics ensures thatthe products move and that adequate extra capacity to handle the following product isavailable. When there is a shift in marketing focus of a company, reverse logistics handles gettingproducts from stores or accept the products returned from clients. If the logisticsdepartment is efficient, it can be used as a marketing tool. Companies with efficientlogistics systems are able to charge prices that are lower and therefore market thecompany’s products. Other companies can attain distribution times that may allowonline buyers acquire their imports quicker, while others can use the logisticsdepartment to transfer products from foreign factories to the stores fast. Logistics isclosely linked to marketing by its functions in client services.Interface between logistic and production: The manufacture of finished products needsacquirement of parts, raw materials and components. The logistic department thereforeensures that they acquire the right parts, components and raw materials to theproduction unit to produce quality products. The quality of materials brought in and theparts purchased defines the quality of finished goods to be sold and distributed. 4
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