Principles Of Logistics Management | PDF

Running Head: Report
Contents
Introduction............................................................................................................... 3
The Interface............................................................................................................. 4
Sales and Marketing.................................................................................................... 4
Finance and Accounts.................................................................................................. 5
Production................................................................................................................. 5
Order Cycle............................................................................................................... 6
Recommendations.................................................................................................... 8
Inventory Management................................................................................................. 9
Recommendation...................................................................................................... 10
Conclusion.............................................................................................................. 11
References.............................................................................................................. 12
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Running Head: Report
Introduction
This business report is compiled to study the logistics department of Philips Electronics
Singapore Pts. Ltd., how this department interfaces with various other core functions of the
company. The report will cover the logistics management process of the company and further
analysing them to identify improvement areas.
Logistics management in a company is a process that involves planning, implementing,
controlling the flow and storage of products and services from the point of origin to the
customer. There are a few reasons to measure logistics, one is for reduction in operating cost,
for revenue growth and for enhancing the shareholder value. Analysis of the operating cost
helps to control expenses and identify areas of improvement in asset management, Service
improvement in logistics activities helps in retaining valuable customers and logistics
performance is directly linked to the shareholder investments and market value of the firm.
Philips Electronics Singapore Pte. Ltd. manufactures electronic products which include sound
and vision products, personal care products, domestic appliances, child care products,
lighting equipment’s, healthcare products and accessories. The company was incorporated in
1951 and was earlier known as Philips Consumer Communications Asia Pacific Pte. Ltd. As
a manufacturer, the goals of Philips Electronics Singapore are also to continuously grow and
attain a competitive edge by continuously delivering innovative products while minimizing
the cost (Philips Team, 2017).
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Running Head: Report
The Interface
Logistics includes a wide range of areas and interlinked tasks. Money invested in an
organization supply chain function affects almost every department of the organization. This
can be said in terms of the process flow and the tasks linkage with one or the other
department, which also increases the interdepartmental coordination. An internal functional
integration is important so as to produce and deliver as per customer demands. Before the
concept of Integrated Logistics, the companies considered production and marketing as the
core functions and all others as support functions. But, with this concept coming in, the
interface increased and few of the responsibilities gets co-managed by production, marketing
and logistics departments (Tseng & Yue, 2005).
Interface with the shippers at warehouse happens when product has to reach to the customers,
an interface with the finance and accounts happens to bill payments, similarly with the
customer support function happens to order processing status. Below is the description of
ways how the logistics department interfaces with the core functions of Philips Electronics.
Sales and Marketing
Saving costs from one or the other way in supply chain, like Kaizen, implementation in
Philips, could explore reaching out to the previously unattainable markets, which increases
the opportunity to grow their sales and increase the customers.
Business process management has a wide focus on managing relationships, wherein it
measures its success in terms of business transactions with the customers through order
fulfillments. Thus, raising an awareness about customer retention. Its economic theory,
means that, to have a cost effective method, it is always better to have multiple transactions
with the same customer rather than obtaining a new customer.
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