IT, Strategic and Financial Logistics.

Added on - Oct 2019

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IT, Strategic and Financial LogisticsArticle- Finance and Logistics: Across the Great DivideAbout the articleThe article is about the relationship of finance and logistics to make supply chainsmoother. The article focused on the ignorance of financial aspects in logistics by thecompany while focusing on flow of product and information. This article is trying tohighlight the operational importance to rise company’s stock price with increased freecash flow.Assessment of article and key findingsIt is the JIT or Just In Time system that 3PL are preferring now a days to save coston logistics. It depends on the vendor’s ability to provide inventory on time to controlinventory expense with JIT.If logistics gives importance to finance, it will look after how much company hasspent on transportation and warehousing, where cost cutting is possible etc.On account of use of IT in integration of finance and logistics, it says lowering costand streamlining supply chain is possible with self-service billing and automaticpayment via internet.Information sharing in Vendor Management System to meet the demand ofcustomer within the timeframe.To do “What if” analysis of supply chain, a translation of financial data intooperational data is possible through Activity based costing and performancemanagement.Feedback and OpinionsThe use of ERP and CRM in operation will help to check on 80% of total logistics spendon network of factories and distribution centres to save the rest 20% of cost for strategicplanning. Apart from the basic needs of financial measures like general ledger,accounts payable and receivable and fixed assets, now onwards the companies will
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