Tuesday, January 7, 2020
The Importance of Logistics Management Free Essay Example, 11500 words
These days the emphasis is cost reduction by the introduction of efficiencies and here is where the logistics come into play. It needs to be understood whether they too adopt the same principles of Lean manufacturing and Just-in-Time (JIT) and assist in the inventory control adopted by their clients. The modern supply chain is often global in nature hence various hub and spoke methods of supply points are also required to streamline availability to support the Lean or JIT activity. Logistics can indeed play a very vital role in this context too. The entire concept of warehousing changed and it became a Special Business Unit (SBU) and a profit centre by itself. Separate companies have come up with the objective of setting up a business of warehousing as a standalone activity. The warehouse of yesterday now became a modern Fulfilment Factory (FF). The more advanced Logistics companies have taken over this concept and incorporated it in their Third Part Logistic (3PL) service. Competit iveness is also the driver of all markets, both in the industry as well as services. The construction industry is part industrial activity and part service hence it needs a variety of suppliers as partners and collaborators, consequently, it needs Logistic support in diverse ways to be and remain competitive. We will write a custom essay sample on The Importance of Logistics Management or any topic specifically for you Only $17.96 $11.86/page There is an increasing trend for firms to outsource logistics services especially in the area of logistics information system management and logistics system design. But dissatisfaction in the market is caused by erratic rate level, failure of on-time delivery performance, and the insufficient number of service offerings.