Logistics: Inventory, Warehousing, Material-Handling

Logistics
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Table of Content
Abstract / Executive Summary PAGEREF _Toc469586917 \h 3
Transport and Logistic PAGEREF _Toc469586918 \h 4
Logistics Management PAGEREF _Toc469586919 \h 5
Impact of Information Technology on Logistic Industry PAGEREF _Toc469586920 \h 6
Principles of Logistic Management: An Evaluation in a Practical Environment. PAGEREF _Toc469586921 \h 6
Value Chain Strategy of the Logistic Industry PAGEREF _Toc469586922 \h 7
Conclusion PAGEREF _Toc469586923 \h 8
References10
Logistics
Abstract / Executive Summary
Logistics refers to a free flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption to meet the requirements of consumers frequently, and originally. Mainly, Logistics involves the integration of information, transportation, and inventory, warehousing, material-handling, and packaging. All the elements are different but integrated into two branches namely, physical distribution and material management. Physical distribution comprises of all the activities associated with making both parts and finished goods available for processing or consumption, particularly their transportation and warehousing. Material management consists of the activities linked to the manufacture of components and finished products as well as their packaging and subsequent reprocessing or recycling. Also, Logistics cannot function effectively without the well-established transportation system as it improves quality and boosts a firm’s competitive advantage as well. Logistics management creates a system that integrates critical business function including sales manufacturing, marketing, information technology, and finance as well. Information technology is essential in the industry as it has increased information and improved automation of complex activities. The three fundamental principle of logistics management includes; knowing the market, adopting lean philosophies and, integrate the business process. Value chain strategy has also benefited the logistics industry it provides clear guidelines on how primary and supporting activities are embedded into a supply chain. A comprehensive intergradation system of material management and physical distribution tend to create a derived and induced demand of its operations. Consequently, logistics is simply a combination of production and distribution such that the outcomes coming from the production have to be transported to the consumers along the supply chain.
Transport and Logistic
There are notable differences between the transport and logistics. However, the two items are inseparable. Regarding definition, transport is defined as refers to the movements of goods and services from one geographic location to another (Zijm, Klumpp, Clausen, & Hompel, 2015). Transport play huge roles in the facilitation of an efficient logistics system for any company through the use of means such as road, air, space road, pipeline. In a particularly, an excellent transport will help a company’s logistics operation by improving its efficiency, boost service quality as well reducing operations costs. Studies have backed the concept by suggesting that transport is the most vital activity among the elements of business logistics (Zijm, Klumpp, Clausen, & Hompel, 2015). Approximately two-thirds of half of the expenses arises in logistics operations are all spent in the transportation process. According to a report by National Council of Physical Distribution Management (NCPDM), the average cost of transportation accounted for 44% logistics costs and 6.5% of market revenue (Zijm, Klumpp, Clausen, & Hompel, 2015). Another study by Bureau of Infrastructure, Transport and Regional Economics (BTRE), from all components of logistics including inventory, management packaging, movement, warehousing, and transport incurred the highest costs (Zijm, Klumpp, Clausen, & Hompel, 2015).
Unlike it may appear, the roles that transport plays in logistics operations are more compound than just delivering goods to the proprietors. Therefore, to handle the transport complexity, a highly quality logistics management is needed. According to Sreenivas and Srinivas (2011), a well-managed logistics systems would also guarantee a well-handled transport system that ensures goods are delivered to the right destination at the right time to satisfy meet both derived and induced demand in the market. An integration of transport and logistics bring efficacy as well as developing a network of flow of gods among the company, suppliers/producers, and consumers. Thus, transportation is the fundamental key to productivity and low-cost in business logistics and develops other vital elements of the logistics system. Furthermore, a well-coordinated transport and logistics system not only improve service quality but also advances a company competitive advantage.
Logistics Management
Logistics management refers the controlling, planning and organizing of supply chain functions which, comprises of fleet management material handling, order inventory management, warehousing, supply and demand planning as well as inbound and outbound transportation management (Grant, 2012).Through logistics management, firms can integrate all the functions with other business function including sales manufacturing, marketing, information technology, and finance as well. As aforementioned, transport logistics can be costly for a company if all the functions are not well-coordinated and tied together. A study by Christopher (2016), revealed that companies that can manage logistic by controlling transport or freight charges which will consequently improve their operating income. The study further shows that companies have to become supply chain masters by controlling, organizing and planning their logistics operations to an extent of knowing the expenditure incurred in transportation as well as identifying where the hidden cost lurk (Christopher, 2016).
In a manufacturing company, logistics operation tends to be slightly different from a service oriented industry. First, in a manufacturing sector, the total cost incurred in the manufacturing labor is mostly involved in manipulating physical material procur...