Logistics and Strategy
Unit 2 Assignment: Logistics and Strategy (Please use the unit 2 assignment rubric that is attached. The PDF has multiple rubrics)
Logistics and strategy are the two main points of the profession of logistics management. As you explore the career field of logistics management, you should soon discover that the three main areas of this field are procurement, operations, and distribution, as you interact between stakeholders and customers.
This assignment will assess your knowledge based on the following Outcome:
MT434-1: Examine how to align logistics with business strategy.
This assignment has you take a closer look at the three main areas of logistics. Ensure that your paper includes each of the following topics with an appropriate breadth and depth demonstrating knowledge of the outcome.
Procurement:
-Describe the logistics area of procurement.
Operations:
-Describe the logistics area of operations.
Distribution:
-Describe the logistics area of distribution.
Also, close your paper with the following observations from your research: What would inspire you about each of these areas towards a career in logistics?
SCM Standard Requirements:
This assignment should be a separate MS Word document, preferably in the most current .docx file format.
In addition to the current APA style title page and reference page; ensure your paper covers the assigned topics, with a focus on quality. The following items provide additional guidance as to writing expectations.
Respond to the questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. Your paper should be highly organized, logical, and focused.
It must be written in Standard English; demonstrating exceptional content, organization, style, grammar, and mechanics.
Your paper should provide a clearly established sustained viewpoint and purpose.
Your writing should be well ordered, logical, and unified; as well as original and insightful.
Ensure your paper uses current APA format for content, with properly indented paragraphs, and a minimum of 3-full pages covering the assigned topics to appropriate depth.
A separate page at the end of your research paper should contain a list of references, in current APA format. Use your textbook, the Library, and the internet for credible research.
Ensure you have at a minimum three quality references supporting your work: defining words, or using dictionaries, wikis, or encyclopedias, does not count as a quality reference, or meet university standards for credible online research.
Be sure to cite both in-text and reference list citations were appropriate and reference all sources. Your sources and content should follow proper APA citation style. Review the current APA formatting and citation style found at the Writing Resources accessed through the Academic Success Center within the Academic Tools area of the course. It should include a title page, paper is double-spaced, in Times New Roman 12-point font, correct citations, Standard English with no spelling or punctuation errors, and correct references at the bottom of the last page.
ANSWER
Logistics Management
Companies find new competitive advantages by aligning the logistics strategy with the corporate strategy. Due to the ever-growing volatility in the global company environment, high-performing supply chain and procurement chains can develop, distribute and manufacture improved and new products more than ever before. A business strategy requires aligning the supply chain operations to meet the customer’s wants and needs. The main aim of any logistics approach is to convey the exact products to the right clients and at the precise time (Harrison, Skipworth, van Hoek and Aitken, 2019). A logistics strategy can help a company lower investment costs by defining service levels at which the company is more effective. In an evolving setting, logistics arrangement lowers threat by empowering companies to expect transformation and improve approaches to adjust to the logistics management changes. Most companies have developed logistics strategies for certain product lines, customer segments, and geographic regions, allowing them to adapt to changes in the market while maintaining efficiency in all regions. The three areas that affect logistics management are procurement, operation, and distribution.
Procurement
Procurement entails sourcing materials needed for production. This includes purchasing raw materials, operational supplies, auxiliary supplies, and spare parts needed for manufacturing. Anca (2019) states that procurement entails contracting third parties to obtain products and services required to achieve the business objectives in the most cost-effective and timely manner. Therefore, procurement can range from contracting the entire services to purchasing small assets. The procurement function focuses on handling the management of equipment, materials, services, and spares that have to be achieved by the organization in the demanded conditions for the company to perform its activities efficiently. Procurement does not end at the contract award phase but spans through the whole product life cycle from inception to design to the disposal of redundant assets. Therefore, in logistics operations, the procurement oversees all the processes included in acquiring materials, goods and services. For instance, the procurement team balances cost reduction, supply assurance, supplier quality, and increasing supplier innovation. Procurement enables companies to better manage their supplier management within the product lifecycle due to the fast-evolving consumer demand. Procurement drives automation and efficiency to create the capability to innovate and be strategic in production.
Operations
Logistics operations entail the production and movement of products from the production center to the distribution center. Operations are more linked to the product of goods since it’s about turning the inputs into outputs. The inputs can include human resources, technology, equipment, and materials. Therefore, operations are highly linked to the internal process of the company. Most of the time in logistics operations is spent planning, organizing, and managing daily operations.
The strength of a company’s logistics operations impacts its capacity to meet consumer demand. The logistics team effectively manages controls and supervises services and products during production. Through operations, the company will easily oversee the utilization of work and key materials along with major stakeholders within the organization (Rushton, Croucher, and Baker, 2022). For instance, operations allow planning production with reference to demand. This ensures that they arrange the raw materials and manufacturing is done on time to guarantee prompt delivery of products to the clients. In a company’s logistics, they have to ensure that the resources are controlled and coordinated in creating products and services.
Distribution
Distribution entails how a company gets its products to the customers focused on order fulfillment. Distribution plans are largely linked to financial and company goals. Some companies may decide to sell products directly to the customers, while others rely on third parties for their distribution. Ristovska, Kozuharov, and Petkovski (2017) state that distribution is the overall management that oversees the management of products from their development to the sales point. This involves everything from inventory, packaging, transportation, stock control, and information handling. Therefore, this is a combination of activities and physical facilities that link the source of the product to consumers while controlling information flow through the major components of distribution; order management, distribution network, stock management, transport, and warehouse management. For instance, physical distribution deals with activities that move the final products to the consumer.
Physical distribution can get a product to the customer quickly and economically, thus increasing customer satisfaction. Transportation is a significant component of distribution in logistics. Different transportation models enable companies and retailers to make the products and services available to the distribution centers and customers. Inventory control is also effective in distribution management since it keeps the inventories in a suitable state while supplying consumers sufficiently. An effective distribution network allows a company to reach a wider customer base since it enhances the speed at which products arrive to end consumers and the ability to expand to other geographic areas (Rushton, Croucher, and Baker, 2022). Distribution planning and channels lead to a wider consumer reach and faster growth. Managing distribution allows bridging time and space by storage, transportation, order processing, and shipment.
In summation, logistics is linked to high efficiency, high production rates, reduced costs, and better customer experience. Logistics allows planning and execution of transportation of raw materials and goods. Well-coordinated logistics lead to positive business performance since a business creates value through organizing the reverse flow of services and goods. The three important areas of logistics include procurement, operations, and distribution, which optimize the logistics function and organize each task from production, warehousing, shipment, and delivery of products to the consumer.
References
Anca, V. (2019). Logistics and Supply Chain Management: An Overview. Studies in Business & Economics, 14(2).
Harrison, A., Skipworth, H., van Hoek, R. I., & Aitken, J. (2019). Logistics management and strategy: competing through the supply chain. Pearson UK.
Ristovska, N., Kozuharov, S., & Petkovski, V. (2017). The impact of logistics management practices on a company’s performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 7(1), 245-252.
Rushton, A., Croucher, P., & Baker, P. (2022). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.
