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Logistic Management Editing and Proof Reading Service
Logistic management assignment help is a supply chain management component that is used for meeting the customer demand through proper planning, control and implementation of effective movement using the store information about goods and services of organization. This process begins with raw material accumulation to the final stage of delivery of goods to the destinations. Moreover, this approach involves proper method of transportation by using the software of IT to improve the efficiency and effectiveness in material handling. Report has provided the information about the centralized distribution of goods and through distribution centre to meet the customer requirements and maintain the effectiveness in services. Moreover, report has explained the satellite distribution method for improving the efficiency as well as tracking of the goods and services through monitoring of the equipments and outsourcing products. Good collaboration among transportation provider, buyer and vendor helps to reduce expenses and contribute in the planning of the improvement in business success. At the end, report has provided the information about material handling and packaging that plays critical role in the process of logistic management to achieve the goals and objectives.
Logistics supply chain management refers to key element of supply chain function of organization that include the inbound and outbound transportation, warehousing, material handling, order fulfilment and packaging of products and services. Additionally, logistic management is part of supply chain planning and implementation of control over the functions to meet the business goals and objectives of organization at different locations of sales areas. Logistic management requires the information related the point of origin and point of consumption to meet the customer requirements. The major reason for supply chain management is optimum utilization of resources and professional working to improve the effectiveness and efficiency that is required for increasing the profits margin. The report will analyze the reason for centralized distribution system for Nike and establishment of satellite centres. Nike is American Multinational Corporation that is offering the high quality footwear, apparel, equipments, accessories and services. Nike is public type organization that was founded in 1964 and serving the worldwide area by developing the products and services according to target audience needs. Moreover the report will provide the information about pro and cons of material handling operation, labelling and packaging. At the end, report will discuss about the advantage and disadvantages of material handling services and process for retail customers.
Reason with the centralized distribution centre not with distribution centre
Centralized distribution refers to organizing the receipts of products and services from suppliers and its onward delivery to individual or multiple retaining operations. According to this method of logistic management the branches of different organization as well the individual receive a single delivery of different range of products and services from the single sources of supplier. As per the given scenario about Nike, the organization is looking for betterment of customers services through crafting the improvement in the distribution services as well offering the good range of products and services before other suppliers and retailers. In order to serve the new growth areas like Russia, Turkey and South Africa it is essential for Nike to maintain and establish the centralized distribution system for better logistic management and meeting the requirements of the target customers. However, before implementing the centralized distribution Nike was offering the products and services through distribution centre but to meet the expectations and overcome the cost of operations this kind of logistic management is necessary (Waters and Rinsler, 2014).
Centralized warehousing is system process that would be beneficial for Nike to maintain the several facilities spread out to cover a territory. For better customer services and improving the efficiency in the operations, this kind of logistic system would be appropriate for organization. In spite of that, management is having good knowledge of distribution tactics but implementation of new distribution system for new market would be beneficial for Nike to focus on the needs of the customers by offering the personalized services. Moreover, to meet the needs of retailer as opposed to shipment and inventory of services that directed by the facility manager at workplace. For example, using the centralized distribution system the management of Nike would lower the inbound cost and able to maintain the online retailer relationship. Every organization looks to lower the inbound cost by improving the efficiency in the business operations as well optimum utilization of resources (Ageron.et.al. 2012). By using this method the distributors will serves shipment from the manufactures that helps to make large quantities in a single location. In addition to this centralized warehousing distribution system will help Nike to provide higher value to customer and maintain higher profit margin.
Distribution centre requires the quality human resources and monitoring tools that would increase the cost of operations and influence customer services that are not good for international brands that serving the wide areas of business. However, organization can distribute the products and services through distribution centre but this is driven by the demand of goods and services. According to analysis, distribution centre are key elements of supply network of Nike through which organization was offering the wide range of products and services at single location. The typical distribution centre is not more beneficial for organization as it requires the sharing space, equipments, labour resources and inventory for multiple products that affect the profit margin (Pomeranz, 2014). Now, from the analysis of new strategy for logistic management Nike could use centralized distribution system that will help organization in following manners:
Accessibility: This would be biggest advantage for organization to have accessibility of all type of products and services at one location. This system will help to track product and services delivery at different locations from one point of origin.
Transportation: Distribution increase the cost of inbound transportation but the centre distribution will help to establish the one location for shipping and offering of the products and services according to needs of the customers as well reduce the time of delivery (Ivanov.et.al. 2016). Centre distribution system take less time for order processing and delivery of desired products and services at different location as it not having the multiple level for distribution.
Reporting: Nike is international brand and people are expecting the high quality services and products from organization. For collecting and analyzing the feedback of customers, centralized distribution system is beneficial for Nike as it will help to generate the report of delivery time and issues that could affecting the logistic operations. By using this method the distributors will serves shipment from the manufactures that helps to make large quantities in a single location (Bustaman, 2015). In addition to this centralized warehousing distribution system will help Nike to provide higher value to customer and maintain higher profit margin.
Reason for satellite centre for distribution
Warehousing and logistic are key functions of business organizations to maintain the demand and supply of products and services to meet the objective of customers. In the current scenario, different types of distribution system and process have been used according to needs and trends of market to retain and increase the numbers of customers. Warehousing is commercial building for storage, manufacturing, import, export and transport business. For expanding business and managing the operations according to Greenfield operations as well retaining the existing operations and creating the satellite distribution would be beneficial for multinational organization like Nike. This kind of distribution system is helpful for analyzing and identifying the existing facilities and development of solutions for different problems and issues related to logistic management (Christopher and Tatham, 2014). In order to establish satellite system for distribution, organization must consider factors such as the cost of renting and furnishing another office, the cost of hiring additional staff to work in that office and whether existing employees will be burdened by the need to travel to and from the main office to the satellite operation. Apart from that, when the primary facilities is landlocked, frequent for business located in order downtown area possible considerations induces building higher and converting to manufacturing.
The conventional warehouse can also built the roof assembling through rebuilding the options of tracking the delivery of products and services. This kind of process also overcomes the cost of managing the documentation of cost in the manufacturing-transportation and analyzing the remote market areas. These services are essential for current business scenarios to maintain the ethical and legal process to meet the satisfaction level of customers (Shi and Yu, 2013). However, Nike is having good centralized approach for distribution and managing the operations to meet the objectives of business in efficient manners but satellite distribution is more effective in terms of planning of the logistic and balancing of the order tracking process. Moreover, it overcome the cultural and language differences as the management could set the target for each department and analyze through customer feedback to make changes. For example, Nike is offering products and services like footwear apparel, equipments and accessories which design and developed according to need and trends of market. Satellite distribution is helpful for managing the operations as well monitoring of tasks that would influence services and impact of external factors (Fernie and Sparks, 2014).
In addition to this, the satellite distribution channel involve the range of different services in logistic that would provide the facility to maintain the operation standard as well planning of the future objectives. Channel structures range from two to five levels. The simplest is a two-level structure in which goods and services move directly from the manufacturer or provider to the consumer. Two-level structures occur in some industries where consumers are able to order products directly from the manufacturer and the manufacturer fulfils those orders through its own physical distribution system. In a three-level channel structure retailers serve as intermediaries between consumers and manufacturers (Delgado.et.al. 2013). Moreover, at other level manufacturers, wholesalers, jobber, retailers and consumer involve in the distribution system that increase the cost of logistic and planning of the distribution method.
For better monitoring, planning of the operations and logistic balance satellite operations in warehousing would be more appropriate. This will provide the opportunities to provide services in larger scale and store the details of the customers for further communication as well ship the replacement quickly once an item would be sold. Apart from that, satellite distribution system helps to plan the activities and operations according to inventory capabilities and large rollout and demand forecasting. Another reason for implementing the satellite distribution system in Russia is processing as the Nike is looking to maintain the fast processing in distribution from manufacturing depot. The efficient processing of products and services has the significant impact on the overall cost as it reduces the cost of labour, inventory and transportation. In the current scenario, cost is most affecting factors in business plan and management which influencing the decision of organization like Nike to implement the satellite distribution system. However, a number of components need to be consider while planning of the distribution but satellite distribution provide the opportunities to maintain the information about the goods demand, export and quality assurance and packaging of the products that would help to deliver products and services of Nike more convincing manners (Christopher, 2016). In addition to this, organizations are focusing on the minimization of ecological impact of logistic activities. For that initiative Nike has started to implement satellite distribution which supports the Green logistic. This kind of logistic system includes path optimization, vehicle saturation and city logistic which will improve the quality of decision making in logistic management.
Pro and cons of locating material handling operations in labelling and packaging
Material handling is process of storing, controlling and protecting material, goods and products throughout the procedure of manufacturing, distribution and consumption. In other words, material handling process involves different equipments, system and related control measurements that would improve the functionality of overall process of implementing constructive approach of managing the resources to encourage the efficacy and monitor the packaging and labelling of the products.
According to observation, it is been carried out that organization like Nike is using the automatic guided system and vehicles for sorting and picking the material that has significant impact on the minimization of production cost (Ye.et.al. 2013). As per Nike management, material handling is function of moving the right material to right place in the right time, in right amount, in right sequence and in right conditions. Following are the major advantages of material handling for Nike:
Increase the capacity: For the multinational organization, it is essential to improve the capacity of the inventory and logistic of products and services like footwear and accessories. Proper handling process of material handling for this kind of consumer oriented organization is helping to analyze the effectiveness of existing storage capacity and planning of the better utilization of space (Fernie, 2013). This kind of approach is helpful in improving the productivity and maintains the safety of products and workers. Reduction in manufacturing cycle time through faster movement of material and work-in-progress inventory costs has significant impact on the operational planning of Nike.
Reduce the cost: The material handling process is majorly used for products manufacturing, inventory and optimum utilization of resources that influence the cost of the overall processing. The bulk storage and establishment of equipments for monitoring the approach of business operations has direct impact on the cost of the logistic operations that drive the business of Nike (Stephens and Meyers, 2013). The top management of footwear organization is looking for betterment of services and reduction of cost to increase efficiency.
Disadvantage of material handling:
Affect the flexibility: The organization is looking at improvement in quality of services and product handling by using the approach of material handling but this has affected the flexibility of change in the transportation of Nike as material handling is having fix procedure. With the integral material handling system, the management cannot make changes in the activities as it follows the fix steps to meet the objectives. This kind of activities has affected the prior planning process of strategic planning of logistic management.
Maintenance: The process of material handling is used for managing the operations of manufacturing the products and services of Nike but it also requires funds for system maintenance. This is not good for organization as it looking to improve the business quality through handle the logistic operations properly (Rosenblatt, 2013). This kind of maintenance procedure and additional costing has significant impact on pricing of Nike products.
Labelling and packaging: Both are essential elements of logistic operations for papering goods, transportation and retailing and use. According to this term, organizations like Nike preparing the goods for transport, warehousing, sales and end usages. Packaging and labelling is offering the information like manufacturing, sales and protective measurements. For material handling, labelling and packaging plays critical role as it improve the knowledge of individual and users to proper utilization and caring factors that has significant impact on the distribution of products and services. In addition to this, the major purpose of packaging is to maintain the physical and barrier protection as well as information transmission for marketing and security. Moreover, if the production processes consists of more than one processing steps or a number of equipment and machineries, then the producer has to arrange for additional handling facilities to transport material from one production unit to the other (Doherty.et.al. 2015).
Pro and cons of material handling services or leaving to retail customers
According to the given scenario about Nike, the organization is looking for betterment of customer’s services through crafting the improvement in the distribution services as well offering the good range of products and services before other suppliers and retailers. of storing, controlling and protecting material, goods and products throughout the procedure of manufacturing, distribution and consumption. In other words, material handling process involves different equipments, system and related control measurements that would improve the functionality of overall process of implementing constructive approach of managing the resources to encourage the efficacy and monitor the packaging and labelling of the products (Jindal and Sangwan, 2013). This kind of distribution system is helpful for analyzing and identifying the existing facilities and development of solutions for different problems and issues related to logistic management. In order to establish satellite system for distribution, organization must consider factors such as the cost of renting and furnishing another office, the cost of hiring additional staff to work in that office and whether existing employees will be burdened by the need to travel to and from the main office to the satellite operation (Rice.et.al. 2013). In order to serve the new growth areas like Russia, Turkey and South Africa it is essential for Nike to maintain and establish the centralized distribution system for better logistic management and meeting the requirements of the target customers.
This kind of approach is helpful in improving the productivity and maintains the safety of products and workers. According to material handling principle, Nike is offering the products and services on large scale that requires team approach and prior planning and coordination to meet the objectives. The material handling planning and retailing customer’s activities requires the strategy to meet the immediate needs and storage activities that are fully integrated with the operational activities. The key disadvantages of material handling process used by Nike are lack of inspection, span of receiving and assembling of the supporting material. Reduction in manufacturing cycle time through faster movement of material and work-in-progress inventory costs has significant impact on the operational planning of Nike. However, before implementing the centralized distribution Nike was offering the products and services through distribution center but to meet the expectations and overcome the cost of operations this kind of logistic management is necessary. In addition to this, Nike requires the simple handling by reducing the major use of manual handling and better use of building cube for increasing the space for inventory as it will be beneficial for organization to overcome the cost of products and craft improvement in the working conditions (Mourad.et.al. 2014). With the integral material handling system, the management cannot make changes in the activities as it follows the fix steps to meet the objectives. In spite of that, retail customer logistic services requires the direct relation and communication with the potential buyers that will influence the sales of products and services as well as increase the demand of the footwear products and services. For better retail experience with the customers Nike management requires to maintain the online and offline integration using the e-commerce functions that will helps to integrate the logistic services with the objectives of the curate experience of customers and offering the information through mobile tools and technology retailing. This kind of activities has affected the prior planning process of strategic plan of logistic management.
Recommendation for Improvement
In order to craft improvement in the logistics management, top management of Nike could refer following recommendation:
- By maximizing the storage capacity of warehouse
- Optimization of transportation.
- Use of automated communication technology
- Encourage the feedback from supplier and customers.
- Monitoring and evaluation of existing process
From the above study, it is been considered that logistic management and strategic planning is essential process and term for any organization that offer customer oriented products. Report has provided the detail information about the centralized distribution system and distribution centre that have significant impact on the management quality of the business. In the next part report has discussed about the satellite centre of product distribution of Nike in Russia as well as advantage and disadvantages of material handling operations for packaging and labelling. At the end, report has explained the retail customer material handling process to achieve the goals and objectives.
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