Role of Supply Chain and Global Logistics in Delivering Products and Services

This report discusses the role of supply chain, transport, and global logistics in the ability of an organization to deliver products and services to customers. It also explores the impact of delivery flow, waiting time, and capacity on the delivery process.

GLOBAL LOGISTICS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Role of supply chain, transport and global logistics and its impact on ability of organization to
deliver products as well as services to customers..................................................................3
Impact of levels of delivery flow, waiting time and capacity in delivering the products as well
as services...............................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global logistics is predominately the process and more of the art which helps the
organizations to manage flow of services as well as goods through supply chain from point of its
origin to final point of destination where it will be consumed by end users. The main aim of this
report is to understand the concept of global logistics and how it is being used by the large
number of organizations.
This report gives a brief overview of role of transportation, supply chain and global
logistics, impact on organization and role of waiting time, delivery flow and capacity in
influencing operations of organization.
MAIN BODY
Role of supply chain, transport and global logistics and its impact on ability of organization to
deliver products as well as services to customers
Supply chain is basically the network between the organization as well as its suppliers for
producing as well as distributing the particular product to final user. This network mainly
includes various activities, people, resources as well as information. Supply chain plays an
important role in the organization and thus impacts their overall ability for delivering the
products as well as services (Mangan and Lalwani, 2016).
Value chain analysis is the process under which organizations identifies the primary as
well as support activities which adds value in the final products and thus analyses the activities
for reducing cost.
The primary activities are the one which help to build the competitive advantage to
Organization and thus adds value to their products
Inbound logistics basically refers to the inbound movement of the materials, parts as well
as finished inventory from the suppliers to assembly parts or the retail stores (O'Connor,
Derudder and Witlox, 2016). The supplies of Organization plays the major role in this activity
and thus it becomes highly essential for Organization to maintain the regular contact with
suppliers in order to effectively deliver the goods and services. Without properly assessing the
inbound logistics, Organization is unable to face the different challenges that takes place in the
stage of product development. The thorough analysis and the assessment of inbound logistics
helps the organization to concentrate upon each and every aspect of the transforming raw
material to the finished product. Company retrieve the raw material, internally disseminate this

raw material and then later on starts the production. Here capacity plays an important role. An
effective supply chain and inbound logistics helps Organization to generate effective throughput
and increase overall capacity by ensuring first time right quality as well as reducing waste.
The operations activity is mainly concerned with the management of process which
transforms inputs into the output which is final goods as well as services. This forms the core
function of Organization which helps them to effectively deliver the products and services to end
users. This activity helps firms to process raw material and thus convert them into end product.
The major operational activities in the firms includes machining, testing, and packing. The
primary operation of Organization involves collecting the goods as well as raw materials from
service provider and thus delivering it to the retail stores (Barone, 2016). The main advantage
which this activity renders to Organization is that it allows them to effectively process the raw
material and ensure that each and every equipment are highly effective in converting this raw
material. This plays an important role in efficiently delivering the products as well as services to
the customers and thus is crucial for increasing productivity and hence maximizing efficiency.
Besides this, it also help companies to achieve the competitive advantage and reduce their
overall production cost.
Outbound logistics is basically the process which is related to storage as well as
movement of final product along with the related flow of information from manufacturing point
to end customers. Organizations mainly utilizes numerous delivery alternatives for their non-
food goods for example Saturday delivery, clock and collect etc. The outbound logistics majorly
helps the organization to effectively deliver the products to end users and helps to achieve the
competitive advantage. Deliver flow forms the integral part of the supply chain of companies and
thus helps to establish the imperative network with customers (Hassan and et.al.,2018). Delivery
flow is basically the method as well as path which Organization uses for delivering its products
and services to end users. The delivery flow of the firms have a profound impact on their
operations and thus in order to ensure the smooth flow of products and maintain the high level
delivery, Organization has their network across wide distribution centers.
The support activities are mainly the activities which helps to support primary activities
and thus forms a vital part for making the primary activity and its impact more effective. There
are range of support activities which helps Organization to sustain its position in the market and
thus assist them to enlarge their customer base (Fernie, 2018).

Human resource management is one of the most important and the integral part of
secondary activity in which Organization mainly analyses the HR management through
analyzing the numerous HR aspects which involves recruiting, rewarding, training as well as
selecting. This forms the most important as well as significant part of the supply chain of
companies and thus enables the company to decrease the competitive pressure on the basis of
motivation and the skills of workforce (Mallidis and et.al.,2018). This plays the most important
role in supply chain and helps Organization to reduce hiring as well as training cost and make its
delivery time as well as capacity more effective. The proper and effective Human resource
management helps large number of firms to eventually reduce the waiting time of customers.
The HR of Organization is highly concerned towards recruiting the staff who has the ability to
deliver effective services to customers and thus reduce their waiting time by instantly responding
to their complaints.
Technology developments is the another major support activity which helps to support
primary activities of Organization. The technology helps the firms to effectively delivery the
products to the end users and hence track their shipment. Here the level of delivery flow plays an
important role and thus impacts the overall supply chain of the company. The supply chain of
Organization includes the wide rage of technology which eventually helps them to deliver the
products to customers. The most widely used technology which is RFID helps track the shipment
of customers and thus allows them to have the smooth delivery flow (Danyluk, 2019).
Global Logistics is process that is a science and also the art of managing flow of the good
by supply chain, from place where they are made to place where it is need to be consumed. It
connects critical component of supply chain from product's point of the origin to its consumption
for ensuring efficient and timely distribution of good from the producer to consumer (Arvis and
et.al.,2016). The management and design of system which direct and control flow of material
into, by and out of company across international and national boundary for achieving its
corporate objective at minimum total costs. Globalization helps in doing business through
moving to national boundaries. It is helpful for Organization to expand their business across
international marketplace. With the help of internet things have become easier for conducting
business operation across globe as world has become global village. Cargo movement need to be
performed physically with help of available transport facility. Transport also plays a major role
in the global logistics for carrying out good from one country to another. They majorly focus on

efficient and fast movement of good which are going to be transport. So that goods could be
delivered on time and without any damage. The physical movement of the cargo, freight,
intermediaries, custom house and forwarders is indespensible. This all plays a major role in
transporting goods and global logistics. With the help of global logistics and transport
Organization could receive their raw materials from anywhere on planet. The packaging,
transportation, labelling and insurance are part of the global logistic. Air, sea, interstate road
system and rail are essential mode of transportation logistic. Costing of transporting material and
the finished good affect the decision-making for Organization that where to locate the
manufacturing facility or which of the supplier is going to be used for delivering given
production input.
Some transport needs high cost for product whereas some needs little one so
Organization need to look at their transportation logistic which are related with their business.
For the global logistics it needs domain knowledge, documentation and connectivity which are
three main area to be concerned while transporting goods. The more global operation more
complexity in business logistics will be enhanced. Global logistic had effect on cost of moving
good as per the nature of product that is being transported and further services which is need to
be delivered to their customers. The company doesn't have control on good movement due to the
global logistics and thus it is difficult for company to manage and control. Organization can
develop differentiation product with the help of global logistics and can create a monopoly in
market. Market share of company can also be enhanced with the help of global logistic (Arvis
and et.al.,2018). More and more consumer will be attracted towards product if specialized
product is to be developed by company. It is helpful for company to gain huge profits and
revenue. And with the help of logistics they can develop good as per the needs of their customers
so that they could be fully satisfied. Global logistics allows company to move away from the
pricing pressure as if they are manufacturing differentiated product then they could have pricing
as per their profit margins by deducting the transportation and logistics charge. Organization
could easily compete with its rivals and could build a brand image among its customers and
rivals. Thus, loyal customer base would be created if quality and differentiated product are
delivered by company to them. Hence, it can be stated that global logistics and transport plays a
major role in the overall success and implementation of differentiated product for Organization.
They can opt appropriate raw material from across the globe and further implement them into

further finished good and develop the product which satisfy needs and demands of their
consumers.
Transport plays an essential role in the supply chain and thus forms the integral part of
Organization. Transportation is basically movement of the materials, various component parts as
well as products from single location to other source and then to final point. Since customers,
manufacturing plants as well as suppliers are highly scattered geographically as well as because
the products are rarely produced in same location thus transportation plays essential role within
supply chain of Organization. This affects the firms to a great extent. The main impact of
transportation on Organization is that it helps them to effectively manage their process and
enlarge the customer base. As Organization has effective transportation system thus it eventually
reduces their transportation cost which at the end reduces their cost of retailers, warehouses as
well as suppliers. On the other hand, some companies still uses the transportation vehicle which
somewhat affects the environment to a great extent (Bhattacharya and David, 2018). Talking of
the short distances, when Organization are required to deliver the products to customers the
company uses trucks which generates a huge amount of pollutants in environment and thus
affects the ecosystem.
Global logistics also have a great impact on Organization and thus somewhere affects
their operations. This global logistics helps companies to create the value for their organization.
When the company have a better logistics then they are able to make the products available to
customers more frequently and this eventually helps to enlarge their customer base. Global
logistics increases value of Organization by providing the quality products to customers and
hence ensuring the fulfillment of their needs and demands. On the other hand, when firms will
have an ineffective logistics system then it will eventually increase the complexity of their
supply chain. Due to the inappropriate logistics, the inventory level will not be effective and this
will increase the burden of staff in supply chain. This in turn will increase the complexity of their
supply chain (Varzandeh, Farahbod and Zhu, 2016).
Supply chain also plays an important role in the operations of Organization and thus
affects their competitive advantage as well as the position which they have in market. Many
organizations have an effective supply chain where their suppliers are scattered across different
locations. Due to this, the products are being delivered to customers on time and hence their
satisfaction level increases. Apart from this, although having the effective supply chain by

having large number of suppliers, some companies still lacks behind in terms of technology
which they use for ensuring effectiveness of their supply chain. Besides RFID, company does not
have grasp on innovative technologies during its supply chain and this eventually leads to
increased customer complaints as well as ineffectiveness in the supply chain (Yadlapalli and
Rahman, 2018).
Impact of levels of delivery flow, waiting time and capacity in delivering the products as well as
services
If supplier delay in supplying raw material then there will be delay in product delivery as
well. All manufacturing process will be delayed due to that. Whereas if raw material is delivered
by the supplier on time or before time then it could be delivered to the client or customer on time
and further it could have a great impact on their consumers. It also states the capacity of
company also that how they can fulfil the requirement of their customer with available raw
material along with quality product. Company further maintain the delivery flow by maintaining
advance stock of raw material with them so that if there is any delay in the supply chain logistics
then they can deliver good with available stock. So there customer will also be satisfied, and then
they couldn't have any delay in product delivery. This will be helpful for company to maintain
loyal customer base for their customer and allows them to rely on company that there needs and
demands will be fulfilled by them on time (Herold, 2018). Delivery flow of company must be
smooth and usual so that they could deliver their product on time to the customer when it is
demanded by them. If there is any delay in the delivery of product then they must ensure
customer to be delivering their product on time or before time which is prescribed by them. In
some situation Organization could give waiting time to their customer for particular finished
good delivery but if there is delay then they must try to manage and let their customer's demand
to be fulfilled. The waiting time must also be given by companies to their client and customer so
that they would be satisfied that their order will be delivered to them soon on time which is
stated by company. Organization must show their capacity that at how much time they would
deliver the order if there is shortage in raw materials along with that they used to maintain the
quality of product as well. Company must always manage as per the requirement and situation so
that they can render quality product and services to their customers. They can always ensure to
deliver product and services to their customer on time so that their customer could rely on
company and its product which is being given by company to them. They must set the level for it

before so that it could be managed and controlled by company if there is any delay in processing.
Organization also must concentrate on its supply chain management so that they could easily
maintain waiting time, capacity and delivery time for company's product and services. They
could ensure that they could maintain advance stock with them so that they can further manage
the product's delivery and could satisfy their customer by fulfilling their demands on time as per
their needs. Supply chain management must be ensured by company so that they can control all
their raw materials supply is on time or not and if there is any delay then further with the help of
that they could further manage their customer's and let them wait for particular time period. If all
this would be managed by company then they can retain in market for long term and could
deliver product and service on time to their customer (Wieland, 2016). This can be further
enhanced profit and revenue for company by which it can grow and expand themselves on global
level. With the help of differentiation product they can create a monopoly in marketplace and
effectively compete with rivals and create a brand image in marketplace. Thus, the global
logistics plays a major role in growth and development of company. It is very essential for
company for taking raw material from all over world and implementing it in their production and
further making it as differentiated finished goods (Pan and et.al.,2017).

CONCLUSION
From the above study it can be concluded that global logistic play a major role in growth
and development of company. A firm can build huge competitive background for company with
the help of global logistics. They can represent their company at global level and could expand
their business operations globally. Company can gain huge profit margin and revenue with the
global logistics as they can develop an immense image in market by developing differentiated
product and fulfilling needs and demands of company. If consumer's needs and demands are
being fulfilled they would be satisfied and which further helps company to establish a brand
loyal image among them. Company can further sustain in market for long term. They can take
over a raw material for company from anywhere in the world which is appropriate for company
to implement them into their finished goods. So it can be stated that it has become major part of
companies nowadays as all them wants to develop their product with extreme features and
superior quality by this they could develop a brand image among its consumer and competitors a
well. They can create a huge competition for other companies and grow immensely with
enhancing their profits and revenue day by day.

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