Logistics Management Assignment - Semester II, MGT322

This assignment explores the core concepts of logistics management and its critical role in modern business operations. The student's work addresses the integration of economic affairs in manufacturing, emphasizing customer satisfaction, efficient resource utilization, and cost reduction. It delves into supply chain management, outlining its components, including suppliers, producers, distributors, and customers, and their functions in the flow of goods, services, finances, and information. The assignment highlights the importance of supply chain management in streamlining processes, improving efficiency, and maintaining a competitive edge. It also discusses the significance of various managerial operations, such as managing materials, acquisitions, and distribution, for the smooth functioning of the supply-delivery chain and reduction of response times and stockpiles. The assignment references academic sources to support the analysis of logistics management principles.

Running head: LOGISTICS MANAGEMENT
LOGISTICS MANAGEMENT
Name of the Student
Name of the University
Authors note

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Answer 1
The current modern trade, the integration of economic affairs from design to completion,
is an essential tool for the manufacturing companies because it enables them to establish the
customer need and focus on customer satisfaction. It also allows the companies to provide
quantity and quality services in terms of distribution, finances and customer service. The process
of economic affairs aims to bring efficiency in purchasing raw materials and other manufacturing
resources required at a specific place within a given period without delay (Brekalo & Albers,
2016). The process determines the Company's economic affairs from design to completion to
provide a favourable working environment for the employees, which increases productivity. The
process ensures better utilization of available resources and reduces the production cost.
Inspired by the "hub and spoke" model, the integration of financial affairs from start to
end is the emerging trend. Due to this, the supply-delivery management focuses on the control
and proper planning of different flows of the economy, beginning from the raw material
suppliers and continuing till the processed goods are supplied to the end
customers(MINCULETE 2020). The economic operations in a company are interlinked while the
departments may have different jobs to do. For example, at the supply side, some particular
managerial activities are involved, including inventories or monitoring the delivery of final
products(Kenton, 2020).
On the contrary, the demand chain management has to pass orders relevant to customer
care. Hence, operations management cannot work independently, and the general economic
situation cannot be ignored. The primary aim of merging economic issues is an increment in the
added value and improvement of how the resources are being utilized. This is accomplished by

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increasing the cost efficiency by producing the desired product at a defined time and place
without any kind of delays involved. As a thumb rule, competitiveness and profitability are
connected. If the total time of response is short, it leads to quick reactions which benefit both
profitability and competitiveness. For the successful production and delivery of goods and
services, as demanded by the market, the manufacturing companies must perform their
integration in supply-delivery chains (Ran, 2017).
Answer 2
Supply chain management is the administration of the flow of goods and services, which
include the purchase and storage of raw material, storage of finished products from the point of
manufacturing to the end of consumption. The supply chain consists of several parties who
provide their services directly or indirectly to the business, and these parties are manufacturers,
suppliers, transporters, warehouses, retailers and customers. They play a vital function in
marketing, distribution, new product development, and finance and customer service. In
manufacturing, the supply chain includes all feature involved in receiving, analyzing, and filling
customers request. The supply chain management aims to simplify the process which takes
place from the supply of raw materials to the manufacturer to the delivery of goods and services
to the customer (Holmberg, 2018). A supply chain department is an essential tool in business
because it enables the flow of products and services, finances and information through a different
channel.
In the logistics field, the supply chain is critical because it enables the study of the flow
of materials and information, purchase and sales from a different point of view, for example
ordering, packaging, and transporting. Supply chain helps the business to determine the level of
completion and provides strategies to stay ahead of the competitors. The supply chain

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management helps the Company in planning and controlling of the different department in
economic flow from manufacturer, supplier, to the end consumer. The parties involved directly
and indirectly in the structure of supply-chain include the firms and beneficiaries such as:
 The suppliers (the businesses that provide the raw materials to the Company).
This is the first step of a supply chain that has the responsibility of buying and
operations of procurement(Wu et al., 2017).
 The producers (organizations that produce a product). They are responsible for the
efficiency of supply-chain management.
 Silos (storage of goods) distributors (retailers and wholesalers). The swiftness and
accuracy of the supply chain are highly dependent on distributors(Brekalo &
Albers, 2016).
With the involvement of these parties, various managerial operations take place. For
example, managing the materials, acquisitions, storehouses, demands, transport and the
distribution of materials. If these parties need to play their perfect role in running a business,
there is a need for appropriate management for the assurance of accurate resource distribution
and the activities of a particular function or operation need to be precisely synchronized as
required. If the management of these parties turns out to be a success, the supply-delivery chain
is then able to run a smooth functioning, decreasing the total time and the response time and the
level of stockpiles. Moreover, it also aids in the improvement of usage capacity(kain & Verma,
2018).

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References
http://www.vjes.eu/images/2014/issue2/4.3.vjes%20vol.%205%2019%20issue
%202%202014%20gheorghe%20minculete.pdf (8 March 2020).
Kain, R., & Verma, A. (2018). Logistics management in supply chain–an overview. Materials
today: proceedings, 5(2), 3811-3816.
Kenton, W. (2020). What Is Economic Integration? Retrieved 5 March 2020, from
https://www.investopedia.com/terms/e/economic-integration.asp
Ran, W. (2017). A Flexible Logistics Distribution Hub Model considering Cost Weighted
Time.s Retrieved 5 March 2020, from
https://www.hindawi.com/journals/ddns/2017/9470943/
Schönsleben, P. (2016). Integral logistics management: operations and supply chain management
within and across companies. CRC Press.
Wu, Y. C., Goh, M., Yuan, C. H., & Huang, S. H. (2017). Logistics management research
collaboration in Asia. The International Journal of Logistics Management.