Operations and Supply Excellence

OPERATIONS AND
SUPPLY
EXCELLENCE

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
LITERATURE REVIEW............................................................................................................1
Theme 1 Significance of outsourcing logistics............................................................................1
Theme-2 Role of Logistic service providers (LSPs)....................................................................3
Theme-3 Performance indicators use by LSPs............................................................................4
PART B ...........................................................................................................................................5
DHL Supply Chain Logistics ......................................................................................................5
Benefit of Lean Thinking.............................................................................................................6
Challenges of Lean Thinking.......................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Operation refers as a set ofactionswhich modifies inputs or raw material into goods or
services. On the other hand, supply chain can be defined the activities which transfer information
or inputs from manufacturing to industry and stakeholders. Supply chain management plays
essential role in firms’ success because it enhances customers satisfaction. Additionally, supply
chain permits business to quickly delivers products or goods to the customers on lower cost.
Logistic service providers (LSP) mentions as a firm which offers management over flow of
material and goods between manufacturing to firms and to end user. LSP controls shipping,
delivering, inventory, warehousing, packaging and security operations for shipment. This report
covers motivation for customers firms for outsourcing advanced logistic and supply chain
management activities to LSPs. It includes significance of LSP’s in industry as well their roles.
PART A
LITERATURE REVIEW
According to author outsourcing can be defined as the organization practice in which a
business recruits another business or individual person to execute tasks, handles operations or
offers services which has previously been done by the organization’s employees. Outsourcing
not only handles various activities but also reduces cost of assembling. Advanced outsourcing
logistics executes operational efficiency and cost saving while offering technology, knowledge
and experts for supporting organization to grow and transform into large firm.
Theme 1 Significance of outsourcing logistics
As per the view of Khalyn, (2019)there are several advantage of logistics outsourcings in
various forms such as saves operational cost, saves in human assets and also helps to connect
globally with other franchises. Various manufacturing company exports raw material from
different countries because it is quite cheaper rather than local raw material. Logistic service
providers (LSP’s) is essential component in the logistics outsourcing procedures because they
hire other firm to get raw material on low cost on the basis of outsourcing policies. Even LSP’s
reduces operational cost by using advanced outsource technology which transform raw material
into high quality goods. Another reason of outsourcing logistics is that it supports to establish
wide network across the world. even logistic outsourcing is effective strategy which helps firms
to achieve competitive advantage. Apart from this it improves service level for customers and
decreases cost of logistic. Outsourcing logistics improves customer services such as various
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tucks and drivers afraid the ability of shippers to load high volume of products. While logistic
companies’ providers hire outsource companies to ship high volume products to various
countries without any type of loss. additionally, outsourcing logistics improves product quality
and enhances working efficiency of supply chain to supply products to customers in minimum
time.
However, some Mageto., Prinsloo and Luke., (2018)has illustrated in their published research
paper is that there are some reason which causes most of the business adapts logistic outsourcing
strategy. A manufacturing industry is comprised of various departments which supports industry
to transform input into output. For example, logistic department which has role to keep raw
material which is supplied by logistic service provider (LSP’s). logistic department also known
as warehousing because it is designed to keep raw material in bulk forms. Sample testing is
another part of industry where samples are taken from bulk input and test by instruments. It
transfers into manufacturing house where raw materialtransform into final product by using large
scale technologies. Final products are transferred into packaging department where they packed
product and moves to quality control department. QC tests final product and their packaging
when product is right then it transfers into market by the help of supply chain management.
Overall operation performs into manufacturing industry by different department, so
operation cost becomes high. To reduce operation cost and input cost adapts outsourcing logistic
strategy by various organizations. Outsourcing logistic leads cost effectiveness because inputs
gets on low cost which automatically reduces operational cost. Outsourcing is not only helping
take rawmaterial but also establishes good relation with other firms in global market.
From another perspectives, Marchet andet,al., (2018)illustrated that supply chain
management (SCM) is important for firm because it helps industry to move information and raw
material from manufacturing to company and end user. Supply chain management is the set of
activities which establish good relation with customers and creates way to gain competitive
advantage in business market.
However,Zhao, (2018)has criticized in their research paper about outsourcing logistics
because they thought outsourcing createsuncertainty in business operation due to disconnection
with local logistic departments.
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