Customers, site selection and logistics planning

Customers, site selection and logistics planning
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Managing the movement of goods and flow of services and their storage is an important aspect of businesses which affects the supply chain and availability of goods to customers. In looking at logistical planning, the selection of site is paramount as this may affect the supply chain. But before there is site location it is paramount for organizations to factor in the customers in logistics operations. Thus, organizations typically research on the market requirements of the customers and ensure that they meet their needs, while also ensuring that the delivery of goods and services is at the right price, condition and location (Rushton, 2010).
The location of consumers is vital for Hewlett- Packard, as the reliance on a buy/ sell model ensures that the delivery of products is faster (Industry Week, 2006). Essentially, this system works whereby the company buys some components from supplies and then sells directly to consumers. The company merely deals with the inventory, but does not own the goods. Another strategy applicable to the company is the use of e sourcing whereby, and HP also compares the cost differentials between numerous manufacturers and settles on the one that has the lowest prices (Industry Week, 2006).
Even though, businesses have changed their logistics planning strategies because of globalization and better technology, proximity to markets is still a top priority issue that determines the location of organizations. Besides, the need to minimize transportation costs may also be influential in determining location, but the customer is the ultimate guide in location decisions. Proximity to market may connote different things in logistical planning of the electronics and computer market. Firstly, it could mean that there is physical proximity to the consumer and at times other manufactures of finished products. Secondly, it could mean proximity to distribution and warehousing facilities that facilitate exporting and importing services. Thirdly, this could include proximity to the market by office facilities whereby there is easier delivery of goods and services to sharing a similar time zone (Cranmer & Wegfahrt, 2006).
In essence, different organizations have their own unique measures that facilitate the selection of projects depending on the market conditions, industry and customer requirements. If organizations have numerous locations for various manufacturing projects, then they would most cases have divergent standards of choosing the locations (Cranmer & Wegfahrt, 2006). In addition, the location of similar manufacturing plants and distribution centers are most likely to also have different standards in comparison to a new plant or warehouse. Even though, the manufacturing and distribution sites of are relevant for it’s customers, it is vital to also take into consideration the cost implications of manufacturing plants as one of these factors, whereby HP company considers the cost of labor in Asia in comparison to America (Coyle et al., 2009).
An organization’s standards on how to choose the location or apply a specific business model may change with time, but the customers are typically the main driving force of the general location strategy. In any case, consumer taste and preferences are the basis upon which organizations create there business models, and the models must also be up to date with regards to consumer changes in tastes. In the earlier models manufacturing sites were close to the source of direct materials, but these models did not lay much emphasis on the relevance of maintaining restock levels. Like in older models nowadays, the customer’s expectations a are paramount in logistical planning, as HP tries to meet these expectations and offer customer service, while also seeking to set the appropriate number of distribution facilities based on the customer’s expectations.
Focusing on the implications of customer’s expectations on quality, cost or delivery time is another way through which customers determine logistic planning and location of businesses. Consequently, the evolving electronic and computer market requires that HP alter there business model while also taking into consideration the relevance of location. The integration of new business models and location requirements in turn help to achieve just in time (JIT). The HP company has five distinct supply chains (Harrington, 2004) that help to improve logistics planning from manufacturing to distribution, with the customer being the main driving force behind the strategies adopted. Consequently, the role of customers in creating logistic planning has also been integrated in corporate strategic thinking as organizations choose between various alternative strategies.
The distribution system of Hewlett Packard is a determining factor in the logistics planning of the company. Being a global brand, the vast distribution ne...