Logistics And Supply Chain Management Definitions Business Essay

Logistics And Supply Chain caution Definitions concern EssayIn modern agonistical business world, any presidential term strives for excellence. To achieve and maintain this, the boldness removes to put in only necessary measures to remain competitive inside the industry it finds itself. One of much(prenominal) measures is logistics excellence. (Durin et al 2011).A major contributing function for organizational excellence has to do with the commission of its logistics. However in recent times, logistics excellence is taken for all in allow and presumed to be the norm, but only to be recognized when t present emerges some major problem.1Since the Criminal Libel Law was taken off the statutes books in 2001, the Ghanian media landscape is before long touted or hipped as one of the most independent media regimes in the West African sub-region. This has led to the proliferation of print and electronic media to the accomplishment that the media market is currently becoming sat urated.2According to the National Media Commission (NMC, 2006), Ghana has 106 newspapers made up of 11 dailies, 67 weeklies, 23 bi-weeklies and five dollar bill tri-weeklies. More than 50% of the news papers currently in circulation prolong come into existence in recent years.Many of them shed sprung up in the past five years, providing readers with a wide range of new publications.At national level, among the 11 national dailies, the state-owned Daily Graphic is the oldest and most widely-read newspaper in Ghana, and it is distributed in all 120 districts nationwide. Established in 1950 and 100% government-owned, the Daily Graphic currently has the highest circulation figure.3The companys askership role in the print media as indicated supra began before the climax of the repeal of the criminal libel law. It is interesting to note that Ghanaians casually refer to any media print at first glance as graphic. This not withstanding demonstrates the enduringness the company draws f rom this brand name.However, due to the proliferation of other print media as a result of the repeal of the criminal libel law, fierce ambition has started to emerge deep down this industry. The state owned and private print media market is becoming saturated to the extent that almost all media prints virtually sell at the same price. An dis assume case of such(prenominal) ar the, Ghanaian Times, The Mirror, The Ghanaian Observer, 90 Minutes, Accra Daily Mail, and the Weekly Spectator which sells at GH 1.50, whilst others like The Daily Guide, The Dispatch, Daily Graphic, The Guide, The Statesman and Business and Financial Times also sell at GH2.00.One way to retain nodes and remain competitive and, at the same time lease up bottom-line margins has been to dilute down prices. Interestingly, price reduction in this instance may not be very possible because market sh bes are somewhat fixed and would lead to lesser margins instead. A better way for companies to still make prof its and remain viable is to embark on an potent and efficient logistics precaution arranging (Christopher, 2011). This is because sales revenue increases would be more difficult to achieve than logistics exist reductions. The effective management of logistics activities such as node service, scattering and drive off logistics would play significant roles alongside other logistics activities in improving an organizations stance in such an environment.Reverse logistics to a considerable extent is not healthy cognize and not practiced within the Ghanaian business environment. This is because logistics has been looked at in most instances from only one military position. It has always been looked at from the put where carrefours are manufactured, packaged, stored in a warehouse, sold, and then shipped to the customer and the process ends. However on that point are more dimensions to this. In addition to managing outbound goods, logistics managers are also responsible for t he liquify of returned goods, re-packaging, including customer service and final disposition of returned items.4Considering the print media for instance, the loose of unsold media prints could be looked at as waste since they cannot be sold the next day. The need to manage waste materials and returned goods is fast growing in all kinds of industries. Currently, companies notably Xerox, Eastman Kodak, Mobil, Home Depot, and Ethan Allen Furniture to name just a few, have recycling programs that attain the needs of their individual industries.5Although these are foreign companies, they occur numerous advantages and benefits from the relevance of reverse logistics practices. In a way these could be very much applicable to most organizations in Ghana for which GCGL is not an exception.Undoubtedly, most firms are now recognizing reverse logistics as a component of the total logistics management process. Stock (1998) and Hansen Harps( 2002) advocated that advance(a) firms that develop an expertise in reverse logistics activities and considers them as a come down of business process adds repute, generate revenue, reform customer satisfaction, achieve significant cost savings and gain competitive edge in their various markets.The GCGL stands the chance of gaining all these benefits as well as competitive advantage over its competitors in the area of cost reduction, enhanced prime(a), branding of their product and maximizing customers loyalty when reverse logistics practices are effectively adopted.Reverse logistics has the following benefitsEnhance Customer Service. The customers perspective is one key economic member driving organizations to develop reverse logistics strategy. Customers now consider returns policies when making purchasing decisions. If GCGL makes its returns policies more restrictive while its competitors treat to offer liberal returns policies, the firm exit have domiciled itself at a competitive disadvantage. The whole purpose of logist ics strategy is to provide customers with the level and quality of service that they require and to do so at less cost to the total contribute chain. ( Rogers and Tibben-Lembke 1998)Distinguish itself with Customers. Embarking on an effective reverse logistics strategy will offer GCGL the opportunity to differentiate or distinguish itself with customers. This is because how a company ease uples returns is often evaluated by customers as an important factor to choose when a in store(predicate) purchase happens. According to Daugherty et al (2002), a well designed reverse logistics system can promote longer-term relationships. Furthermore, customers are more likely to buy from retailers who vanquish other retailers on returns handling.Knock Off Competition. GCGL management will stands to benefit from the knowledge of the companys logistical performance which could be employ to influence decisions and aid in the formulation of corporate goals and objectives to offset competition.A chieve Green Image. The GCGL by engaging in reverse logistics stands to gain a good environmental image with the customer which could invariably promote better customer relations. Having such an image can be part of a customer relationship strategy, e extraly due to the increase of environmental consciousness by society as a whole. The overall reverse logistics programme effectiveness will have indirect benefits for the firm, such as better corporate image or improved levels of customer satisfaction to retain customers and as well stand the competition within the industry. (Jayaraman and Luo2007)Need to hold Costs. Frequently, manufacturers treat recovery of products and packaging as an afterthought. A well-managed reverse-logistics program, however, can bring enormous savings in scrutinise-carrying, transportation, and waste-disposal costs.6Enjoys Goodwill. The goodwill associated with practicing an effective and efficient distribution and reverse logistics strategy has not been fully discovered by most companies in Ghana. The Goodwill that GCGL could earn from acting in a socially or environmentally responsible manner can produce real value. This can create substantial customer loyalty.(Rogers and Tibben-Lembke 1998)1.2 seek ProblemIn Ghana intense competition within the print media industry has to a large extent stabilized the price ceiling of media prints. The situation has been aggravated by policy-making influences as political parties have delved the opportunity of coming up with their own media prints to propagate party agendas. Whilst GCGL media prints specifically the Daily Graphic has been acclaimed a national newspaper, and hence mostly enunciate on broad national goings, many others steering and take sides on political issues that would interest party members. As a result market shares are more or less stable and only sway when a particular media print covers a more topical or sensational issue that cuts crosswise a general national interes t. The likelihood of dwindling margins cannot be over emphasized in such circumstance. The more convenient means for GCGL to make profits is to embark on an effective logistic management to cut down logistics costs and to remain competitive in business.On the other hand most organizations have not fully embraced reverse logistics for reasons best known to them regardless of the benefits that could be realized on embarking on effective reverse logistics practices. The issue is that there is little demand for knowledge within the mindsets because it has been presumed that reverse logistics inherently deals with the least favored aspect of organizational activities (Hansen Harps, 2002). This is because most firms do not place reverse logistics as a core competence but as something to be ignored as much as possible (Hansen Harps, 2002).The print media products commonly have life cycles ranging from a day to maximum of about a week. What happens to unsold products and those that are no longer of use to the consumer does not seem to derive much concern from the publishers. This situation does not only create loses but also goes to add filth to our environment causing health and other environmental problems in the long run.Conducting a research to unearth the best possible means for GCGL to improve upon its current logistics management trends and practices, to improve profit margins and as well create value for their products that have ended their life cycle is the main focus of this thesis.1.3 Research QuestionsIn order to identify the extent of logistics management activities that GCGL is currently engaged in and analyze them, the thesis would seek answers for the following questionsHow are the logistics activities pursued in the organization?What distribution system is the company employing?How is return full stops managed?1.4 Research ObjectivesThe accept has the following objectivesTo identify the logistics and supply chain activities the company is engaged inTo identify and rate the effectiveness of the distribution systemTo describe and assess the impact of reverse logistics practices on positivity1.5 Significance of the StudyThe study will bring out any shortfalls that are inherent in GCGLs logistics practices and assert management adequately to develop sound logistics plans.Additionally, it will serve as a reference document for the GCGL logistics department to effectively manage their day-to-day logistics activities.The study will also be beneficial to the companys trinity party logistics providers, as the document will assist them to adopt the appropriate logistics procedures and hence contain effective communication and integration among them.The thesis will also be beneficial to other print media organizations as well as those in other industries to focus on reverse logistics strategy as a source of gaining competitiveness amongst others.1.6 Limitation of the Study1.7 Thesis OrganizationThe study will be organize into fiv e chapters. Chapter one is the introduction and will comprise the background, problem statement, aims and objectives and significance of the study.Chapter two is the literature re forecast and will highlight existing definitions and works by researchers relate to the area of study.Chapter three is devoted to the methodology used in this study. The chapter looks at the study area, design of study, data collection approaches, description of the study, sampling and the constraints/problems encountered and chapter quaternity will summarize the major discussions of the study.Chapter five will highlight on the important issues in the summary and make recommendations.CHAPTER TWOLITERATURE REVEIW2.1 INTRODUCTION furious competition in todays marketplace has forced business enterprises and organizations to invest in and focus on supply chain and logistics management to be more competitive and as well, remain in business. Logistics has now been seen as the growth and dynamic functions in th e success of many different operations of an organization. Logistics activities such as distribution communication, customer service, inventory management, materials handling, packaging, and traffic and transportation procurement have led to the growth in telecommunication and transportation technologies (Rushton et al 2006).Whilst logistics is often seen as training orientation and framework that seeks to create a single plan for the melt of products and info through and through a business, supply chain management builds upon this framework. It seeks to achieve gene linkage and co-ordination between the processes of other entities within the pipeline, i.e. suppliers and customers, and the organization itself (Martin Christopher 2011).A lot of research works on the concepts of logistics and supply chain management and their impacts on the successes and failures in industries and businesses have been carried out. This paper will therefore review aspects of the available literature and research works that view logistics and supply chain management in their definitive contexts with special emphases on activities that relates to customer service, logistics distribution systems and Reverse Logistics.2.2 LOGISTICS AND SUPPLY CHAIN MANAGEMENT DEFINITIONS2.2.1 Logistics worryThe term Logistics originated from the military and was used basically to describe the movement of violence and materials during wars and also in emergencies. It was later adopted by businesses and organizations and became a part of commonly used terminology in professional societies and academic programs, and was defined in various ways to satisfy trends and developments (Rushton 2009).The Council of Logistics Management (CLM), one of the leading professional organizations for logistic uses the term logistics management to describe the process of prep, implementing and controlling the efficient, cost-effective flow and computer memory of raw materials, in- process inventory, finished goods and related information from point of origin to point of drug addiction for the purpose of conforming to customer requirements (Lambert et-al, 1999).Alan Ruston et-al (2007) defined Logistics Management by the Council of Supply Chain Management Professionals (CSCMP) as that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and reposition of goods, go and related information between the point of origin and the point of consumption in order to meet customers requirements (CSCMP, 2006).Martin Christopher (2011) stated that logistics is the process of strategically managing the procurement, movement and storage of materials, part and finished inventory (and the related information flows) through the organization and its marketing channels in such a way that current and future profit efficacy are maximized through the cost-effective fulfillment of orders.Starting from the first definition, although these authors p ointed out that the ultimate disposal, recycling and reuse of products should be considered as activities in logistics management, the CLM definition above was silent on them. The definition only took into consideration the forward aspect of logistics focusing on the end product reaching the final consumer according to consumers requirement. The questions here are that what happens to the product if it does not conform to the customers requirement and also how will the product be managed after the final consumer has exhausted the full use of the product?In other words, CSCMP indicated and emphasized on forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers requirements.This definition to a considerable extent answers the questions which were ignored by the CLM as it considered reverse flows in addition.Martin Christopher stressed on how organizations could maximize current an d future profitability through the cost-effective fulfillment of orders. Although the definition did not specifically mention reverse flows, it could be implied that such activities if undertaken could sum up to the organizations profitability.In summary, it could be mentioned with certainty that all the definitions above place some emphasis on logistics activities to typically include inbound and outbound transportation management, flicker management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third party logistics services providers. Additionally the inclusion of sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service were mentioned by Christopher.It is worth mentioning that logistics must be relate in all levels of planning and execution. This has to do with the strategic, operational and tactical levels. Planning at these levels should not be done in closing off else the synergy to be derived from the various functions would not be realized (Lambert et al 2009). Logistics management is therefore an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology (Alan Mckinnon, 2001). It is essential that convinced(p) planning approach is adopted by ensuring that the operation is set up to run properly. The two parts of logistics management has to do with inbound and outbound logistics. One way to envisage the two concepts is about ensuring and managing that the operations are set up to run properly by doing the right field thing or preparing for and planning the operation. Thus supply and material management represent the storage and flows into and through the production process, whiles distribution represent the storage and flow from the final prod uction point through to the customer or end user.Logistics management from this view point is the means whereby the needs of customers are satisfied through, the co-ordination of the materials and information flow that extends from the market place through the firm and its operation beyond that to suppliers. To achieve this, there should be a wide integration within the organization and also a synergy between the marketing and manufacturing within the organization preferably than a fragment separate activities (Spekman, KamauffJr et al (1998)Logistics is therefore essentially an integrative concept that seeks to develop a system-wide view point of a firm. It is fundamentally a planning concept that seeks to create a framework through which the needs of the market can be translated into a manufacturing strategy and plan, which in turn links into a strategy and plan for procurement.7The CSCMP definition laid emphasis of logistics management being part of supply chain management which pre-supposed that other influences on the logistics activities abound to ensure their effective functioning.A working definition for Logistics Management for this thesis would therefore be the (CSCMP 2006), which states that, it is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers requirements.2.2.2 Supply Chain ManagementSupply chain management has been mentioned in the (CSCMP 2006) definition for Logistics Management. It referred to logistics management as a subset of supply chain management. Meanwhile these two terms have been used interchangeably in most literature.Supply Chain Management has defined supply chain management as the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Import antly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies (CSCMP, 2006).Supply chain here is viewed as a single entity rather than series of fragment element such as procurement, manufacturing and distribution. It goes further to talk about the integration of information systems in the supply chain rather than merely acting in isolation for each of the separate component. It was further indicated that supply chain management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business modelAlso, it included all of the logistics management activities noted above, as well as manufacturing operations, and indicated that it drives coordination of processes and activities within and across marketing, sales, product design, finance, and information technology (Martin Christopher2011)Christopher (2011) also defined supply chain management as the management of upstream and downstream relationships with suppliers and customers in order to deliver superior customer value at less cost to the supply chain as a whole.From the authors point of view, supply chain is the stream of processes of moving goods from the customers order through the raw materials stage from the supplier, down to the production process, work assembly, and distribution of products to the customer.He argued that supply chain management could be termed as demand chain management to reflect the fact that the chain should be driven by the market, not by suppliers. Also the word chain should be replaced by network since there will normally be multiple suppliers and, indeed, suppliers to suppliers as well as multiple customers and customers customers to be included in the tota l system.Extending this idea it has been suggested that a supply chain could more accurately be defined as a network of connected and interdependent organizations mutually and co-operatively working together to control, manage and improve the flow of materials and information from suppliers to end users (Christopher 2011).The CSCMPs and Martin Christophers definitions above both made mention of the fact that supply chain encompasses logistics management which is the supply, materials management and distribution but rather goes further to argue that supply chain incorporates suppliers, suppliers to suppliers , as well as multiple customers which seeks to achieve linkage and co-ordination between the processes of other entities in the pipeline and the organization itself through the sharing of information on demand.Chopra and Meindl (2007) defined supply chain as consisting of all parties involved, directly or indirectly, in fulfilling a customer request. They went on further to say s upply chain includes not only the manufacturer and suppliers, but also transporters, wholesalers, retailers, and even customers themselves. Here the supply chain is referring to the customers need or what he or she intends to purchase. This implies that all the stakeholders that are involved in contributing their quota to satisfy the customer should work hand in hand to fulfill that purpose.Christopher (2011) in the end indicated that all firms have supply chains of varying degrees, depending upon the size of the organization and the type of product manufactured and managing the chain of events in this process is what is known or referred to as supply chain management. He went further to state that effective management must take into account the coordination of all the different pieces of this chain as quickly as possible without losing any of the quality or customer satisfaction, while still keeping costs down.In essence, whilst logistics management deals with integration of funct ions within an organization, supply chain management takes care of this integration and extends it across firms in the supply chain. Figure.1 is a diagrammatic representation of logistics and supply chain management indicating how logistics is compound in supply chain management.Raw materialComponents packaging itemsBought in partImported materialsProduction processWork-in- progressPackagingunitization immaculate goodsInventory warehouseDepotsdistributionEnd userSupplyMaterials management disseminationSuppliersLogisticscustomersSupply chainSupply sideUpstreamInbound exact sideDown streamOutboundInformationTransportReverseLogistics = Supply +Materials management +DistributionSupply Chain =Suppliers+ supply +Materials management +Distribution+ Customer (Alan Ruston et al 2007 5)2.3 LOGISTICS AND SUPPLY CHAIN MANAGEMENT ACTIVITIESThe domain of logistics activities is to provide customers with the right goods in the right place at the right time. It ranges from providing the necessary subcomponents for manufacturing to having inventory on the shelf of the retailer to having the correct quantity. The major issue that logistics attempts to resolve is to decide how and when raw-materials, semi-finished, and finished goods should be acquired, moved, and stored.8Ensuring an efficient, effective forward and reverse flow and storage of goods, services and related information as said by Rushton et al (2010) needs an effective and effecient logistics activities to be able to meet customers needs and wants at the right time, and at the right.Lambert et al (2008) and Langley (2009) both outlined the key activities required to facilitate the flow of a product from point of origin to point of consumption to meet the end user as followsCustomer ServiceDemand forecasting/ planningInventory managementMaterials handlingOrder ProcessingPackagingPart and Service SupportWarehousing and StorageProcurement/ SourcingReturn goods handlingReverse logisticsTransportationDistributionManufa cturing2.3.1 Customer ServiceMany attempts have been made to define the term customer service. However, depending on the organizations core business that its provides, customer service will differ.Lucas (1996) defined customer service as the ability of knowledgeable, capable, and enthusiastic employees to deliver products and services to their internal and external customers in a manner that satisfies identified and unidentified needs and ultimately result in positive mouth -to- mouth publicity and return business. Lambert et-al (1999) also used the term customer service to describe the process which takes place between the buyer, seller, and the third party. The process result in a value added to the product or service deepend. He went on further to say that the value added in the exchange process might be short term as in a single transaction or longer term as in a contractual relationship. He again mentioned the value added is also shared, in that each of the parties to the tran saction or contract is better off at that closing of the transaction than it was before the transaction took place.Lucas (1996) distinguished between internal customers and external customers. The internal customers he said comprised peers, co-workers, bosses, and subordinates, whilst eternal customers constitute vendors, suppliers, walk-in-customer, various telephone callers. plane though Lambert et al (2009) did not mention internal customers, he captured external customers in his definition and went on further to talk about value creation within the transaction period to achieve a cost effective way in the chain of activities. They stated that the value added products or services are enhanced when the time and place utility between the buyer and seller are met and as well expanded and considered. Such conditions are for the most part considered as the seven right of customer service. These are the right of quantity, cost, product, customer, time, place, and condition (Rushton et al, 2007).From the above, meeting the needs of customers should be very important in every organization even though it is very difficult in maintaining them and to achieve this is to make sure products and services are rendered at the right time, at the exact place in the right condition, at the right cost to add value to avoid customer complains.Rushton et al (2007), Lambert et al (1999), Christopher (2011) all emphasized on the element of customer service as, pre-transaction element, transaction element and post-transaction element. Where the pre-transaction element focuses on the companys policies concerning customer service. Transaction relates to element directly linked to physical transaction such as order cycle time, inventory availability, condition of goods, system accuracy, product substitution etc. Lastly those elements that occurred after the delivery has taken place is referred to as the post- transaction element and these include the installation of warranty, repair s and service part, return policy, customer complaints and claims. Customer service therefore plays a crucial role in organizations as far as growth and profitability are concerned.2.3.2 Demand forecasting/PlanningDemand forecast is defined as statistically based sign estimate of future demand. It is well indicated that a dem