Iscom374 - Integrated Logistics Managment

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Requirements that Influence Logistics and Impact the Supply Chain

If we look at specific abilities and process we can find adequate ways that will assist in an organization’s focus on specific customer bases and will eventually provide the group with unique value-added activities that exceed the customer’s expectations. Organization should always look for proactive, timely, and creative logistics solutions to refine customer emergencies, specific problems, and the ability to streamline critical logistics activities in different supply chains often survive long-term. Just-in-time (JIT), quick response (QR), and vendor managed inventory (VMI) concepts are several ways organizations provide satisfactory solutions. JIT and QR are assisted by off peak deliveries or reasonable delivery appointment times allowing deliveries to “get in, make the pick up or delivery, and get out” (Trunick, 2004, p. 26). Penske and Ford now use radio frequency cross dock scanners to track delivery of individual parts. VMI is assisted by the use of radio frequency identification (RFID) tracking inventory and sales. Each process reduces waste while increasing service speed; however, satisfaction would not be possible without “placing the buyer-seller relationship at the center of an organizations strategic and operational thinking” (Panayides & So, 2005, p. 37, para. 4).

Appropriate Logistics Planning Resulting in Customer Satisfaction

ACDelco distributors also offer the flexibility and responsiveness to meet customer expectations and demands through value-added functions; where as GM parts ships in case quantities, once a day, and uses cross docking for back order part. ACDelco distributors offer value-added services of breaking unit case quantities providing dealers the ability to purchase one filter instead of 12, one or eight spark plugs instead of 144, or one bed liner instead of 12 (which could turn better profit). In addition, orders are shipped a minimum of three times daily and backorders are shipped from the next closest location direct and not to the local warehouse for reshipment.

Conclusion

In conclusion we analyzed that organizations rely on supply chains and logistics to reduce cost while maintaining superior customer satisfaction. Logistics often uses value-added functions to meet customer demands while maintaining the strategic goals of the organization. Organizations that find the correct balance between customer demand and organizational strategy often realize a competitive advantage through efficient use of logistics.

References

Mentzer, J. T., Min, S., & Bobbitt, L. M. (2004). Toward a unified theory of logistics.

International Journal of Physical Distribution & Logistics Management, 34(7/8), 606.

Murphy, P. R., Wood, D. F. (2004). Contemporary Logistics, 8e

Prentice Hall, Inc. A Pearson Education Company. New York, NY,

N. A., . (2007, July 30). Beyond supply chain visibility: response management is the key case study casio. Retrieved from http://www.aberdeen.com/aberdeen-library/4341/RBsupply- chain-visibility.aspx

N. A., . (2010, June 3). Kuehne wins china distribution contract for john deere. Retrieved

from http://www.supplychain.cn/en/articles

N.A., . (2010). Ford motor company. Retrieved from http://www.penskelogistics.com/casestudies/ford2.html

Panayides, P. M., & So, M. (2005, March). The impact of integrated logistics relationships on third-party logistics service quality and performance. Maritime Economics & Logistics, 7(1), 36.

Trunick, P. A. (2004, December). What's coming up in logistics tomorrow. Logistics Today, 45(12), 26.