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The Global Logistics and Supply Chain Management

   

Added on  2021-05-30

9 Pages2017 Words32 Views
Running head: SUPPLY CHAIN Supply Chain Student’s nameName of the Institute

SUPPLY CHAINFive elements related to the benefits of GLSCM The Global Logistics and Supply Chain Management is an interesting area as it helps organization to bring efficiency and effectiveness in the system (Simpson, et al., 2015). The five themes associated with the GLSCM can be discussed as:NumberTheme1Use of Information Technology across the supply chain as IT is a key enabler for businesses (Giannakis & Louis, 2016). With IT, business can make continuous improvement.Giannakis & Papadopoulos (2016) argued that Information Technology is not only a support function for organization but a key enabler. With the use of Information Technology, organizations can actually bring efficiency in the supply chain. The use of IT enables the supply chain functions like real time inventory management, Just in Time inventory system etc. The use of Information Technology also provides an opportunity to organizations to integrate their supply chainthrough forward integration and backward integration (Durach, Wieland & Machuca, 205). Zara is one such company that heavily uses Information Technology across its supply chain. This is the reason that Zara has very limited inventory handling cost (Giannakis & Louis, 2016). Zara is known to replenish the inventory across its stores within a month and with the use of Information Technology, Zara can actuall do this. 2Use of Just in Time system. It is aninventory In the JIT methods, the supply chain functions by receiving goods only as they are needed in the production process, thereby reducing inventory costs (Kamalahmadi & Parast,

SUPPLY CHAINstrategy companies employ to increase efficiency and decrease waste in the supply chain and overall system (Giannakis & Papadopoulos, 2016)2016). This method requires producers to forecast demand accurately. With this system, organizations can actually minimize the cost of holding inventory. This technique is primarily used by the organizations for which inventory holding cost is very high (Stevens & Johnson, 2016). Organizations have started to focus a lot on JIT methods so that they can increase their profit margins. The pharmaceutical companies like Ranbaxy would use JIT technique as the cost of holding inventory is high due to the environmental conditions to store some of the drugs. This strategy has helped pharmaceutical companies to save a lot ontheir inventory cost (Ellram, Kirchoff & Tate, 2016). With theJIT method, the companies are able to reduce the cost of operation. 3Another theme is the use of six-sigma methods to monitor and remove the defects in the system. With six-sigma organizations can actually aimToday, organizations have realized that the productivity of the system can be improved only when the defects are minimized in the system (Meixell & Luoma, 2015). Therefore, objective of the organizations is to use techniques to minimize the defects in the supply chain. Six-Sigma is a powerful tool that can help organizations to minimize the defects. It takes time to practice six-sigma. However, with time, organizations can master the art (Dubey & Gunasekaran, 2016). The benefits with six-sigma is that it directly results in profit improvement for organizations. It is

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