Logistics Strategy

In the production and distribution of goods, inventory is the currency of service. An increase in service can virtually always be achieved through an increase in safety stocks, so a supplier inevitably faces a trade-off between service levels and inventory costs. This and related tradeoffs are discussed at least qualitatively in most operations management textbooks in some of the managerial literature, and in the research literature. It raises the question of just how much service inventory can buy; i.e., what is the marginal cost of a service improvement,

Study Question #4. Compare and contrast the customer service, customer satisfaction, and customer success philosophies of supply chain management.

Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.

Company is facing a challenge of potentially higher inventory costs. Rising prices may further result in changes in customer behavior and preferences.

Ferreira, J., & Prokopets, L. (2009). Does offshoring still make sense? Supply Chain Management Review, 13(1), 20-n/a. Retrieved from http://search.proquest.com/docview/221135949?accountid=12085

During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers ' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is an important strategy to manufacturing or service companies.

25. What are the merits of outsourcing the performance of certain value chain activities as opposed to performing them in-house? Under what circumstances does outsourcing make good strategic sense?

What is developing the ability to produce goods or services previously purchased or actually buying a supplier or a distributor?

Outsourcing is one of the approach to offshoot the responsibility and decision criteria to other companies which can take care of the several components of the supply-chain. The inventory management process can reduce the cost of operating firm’s own

When offers of reduced pricing are accepted for equipment, meeting delivery expectations becomes an important part of enhancing the customer experience to maintain satisfied loyal customers. An inventory specialist in the current distribution center would be given the additional task of segregating and maintaining inventory levels to meet the needs of the customer loyalty department.

Recently an opening of the economies of developing nations, especially China, has allowed a huge shift in outsourced production. For the most part the products of the outsourcing are destined for North American consumption, which creates interesting obstacles to the realizations of improvements predicted. Mega Bloks Inc is a Canadian example of this trend, having recently made their own foray into outsourcing to China. An examination of supply chain issues reveals the overall complexity and number of issues which could develop for a company like Mega Bloks. More specifically, for Mega Bloks issues of logistics, regulation, control (in general and specifically of quality) come to the forefront. All of these issues can individually and

During the 1980s and 90s, outsourcing organizational activities became the standard for many organizations (Kahai et al., 2011). Outsourcing, as a part of an organization’s overall strategic plan, has been effective in helping achieve organizational goals and objectives (Kahai et al., 2011). Currently, many organizations incorporate outsourcing into the strategic plan, and this trend will probably increase in the future (Heikkila & Heikkila, 2010). Although outsourcing will not solve all of the problems inherent in attempting to achieve competitive advantages and organizational cost-reductions in an organization, the practice is increasingly part of an organization’s overall comprehensive strategy in the business world (Andreff, 2009). While

Riordan should consider outsourcing as a one means of improving the supply chain. Outsourcing is an approach to push the responsibility and decision making to other companies, which are a part of several components of the supply chain. Company’s find that outsourcing can provide some relief to a company whom is experiencing a shortage of resources. Outsourcing could allow the company to focus on the core process of the business while providing the flexibility needed during varying demands. Supply chains management concentrate on inventory processes to complete the orders that are requested (Chase, 2005). The movement toward a just-in-time inventory system (JIT) could provide Riordan with continuous improvement in efficiencies to its fan production process. Riordan will take the stance of eliminating all cost that does not add value to the product. The China plant will be able to have their parts arrive at each workstation at the optimal time to complete the process in a more efficient manner. Riordan will establish areas in their production that are linked, which will provide a beneficial balance of flow of material throughout the production process.

Many complex and more diverse decisions confront supply chain managers on a regular basis: what would be more efficient to manufacture in-house or to outsource; what new channels to implement that it would benefit their customers and suppliers, or how all new technologies, platforms, and practices have to be aligned to enable real-time supply chains. Current information technology reduced outsourcing transaction costs drastically, enabled companies to an increased supervision and control over offsite work, and outsourcing services can deliver faster and more convenient, but technology alone is not the solution. If a company decides to embrace changes in business processes and business culture, those changes can support a long way toward delivering a better product for less money. Complex sphere of activities in many countries is not relevant anymore because a massive number of activities outsourced became commonplace, a new normal.

This report will analyze the Supply Chain and Logistics Industry in the United Arab Emirates during the last five years. The tools and techniques used for this analysis shall be PESTEL and PORTER’S 5 forces. Further this report shall discuss about the Industry type based on the competition existing in the market and its current phase in the Industry cycle.