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Logistics Management and Strategy Assignment Help
This report is detailed study of logistic management and its various strategies which can be selected by different organisations on the basis of their requirements, sizes and organisational structure. The role of logistic management in the process of supply chain management is also defined in the project report where it is defined that how logistics management support management of supply chain of a company. A case study of business activities of Nike which follows the centralised approach in its working is analysed to identify various issues which can be resolved by way of adopting and applying effective strategy of logistics management and can improve the organisational performance.
In the present business environment strategic management is essential for growth and effective running of organisation. Strategic management is defined as the scientific management by taking most effective decisions and planning things. Supply chain management is also treated as part of strategic management and logistics management is a tool of supply chain management in the organisation (Wong & Lai, 2012). Logistics management is the process to effective planning, implementing, controlling and improving different information, goods and services in a manner which can lead to increased customer satisfaction in the organisation. This process helps in making the organisational activities cost effective and customer centric which helps in increasing the customer loyalty and demands. The process of logistics management starts from purchase of raw material to delivering goods to the final stage. This process also helps in the effective adoption of industry standards in the company which leads the organisation to achieve the organisational goals in effective manner (Zhang, 2013). This project report is a detailed study of logistic management and its strategies which are using by different organisations to ensure effective execution of activities. We will analyse the case study of centralised distribution at Nike which is based on the concept that “centralised and specialised but not standardised”. This report will explain the issue in the case study and will analyse those logistic strategies which can be used by the company to resolve that issue.
About Case Study: Centralised Distribution at Nike
A centralised customer service centre of Nike is located in Belgium which is a distribution centre of the company. This centre of the company is providing its products to more than 45000 customers in Europe, Middle East and Africa. Supplier factories provide products to the centre which is send to all around the world for distribution. In the initial season the staff of the company stands at 2300 which is reduced as in reduction in the demand in other seasons to 1350 staff members. Deliveries of the centre are complex and time consuming which is due to the decisions of the centre to adopt centralised receiving, storage and shipment to the customers. The distribution centre is centralised and this is helping in the low inventory and consolidation of inbound shipment but it is not totally standardised for all the logistics management operations. In this case study we can analyse that the approach of the service centre of Nike is based on the approach of centralisation in its logistic operations but it also defines that there is centralisation and specialisation but there is not only standardisation as in there are various logistic operations are customer based and customised (Vikulov & Butrin, 2014).
By analysing and studying this case study we have evaluated the issues which are involved in the service centre’s operations which are centralised and creating a problem for not gaining effective results by its operations. Nike has adopted approach of diversified distribution centre as in the Belgium deal with the footwear, apparels and equipment which are providing its services to EMEA. There is lack in the logistics management of the distribution centre of the company which is leading it to ineffective results. Retailers are important in the chain of the distribution as in they directly meet the customers and can identify their requirements and can convey it to the company. This centralised process of the customer service centre is making all the logistic operations more complex as in centralised form of working is making the supply chain management of the distribution centre also ineffective. The season based orders production and operations are conducted which is increasing uncertainty in the company. The information, goods and services are not appropriately stored, managed and controlled and this is leading to ineffective customer satisfaction which can be increased due to inefficiency in delivery in one day. The order process is also complex for the retailers and their role is limited due to this centralised system. The issue in the business of the company is that there is ineffective selection of strategy of logistic management without the analyses of different aspects of business or organisation. This report will define what are the improvements and changes which can be done in the company’s customer service centre (Tyagi & G.Agarwal, 2016).
About Logistic Management
Organisations adopt supply chain management which is the process to control the process from the procurement, manufacturing, storage, distribution to disposal of products. This is a strategic management approach in which strategic decisions are taken. Logistics management is also a tool of supply management which covers all the aspects like planning, controlling, implementing and storing of information, goods and services from its emergence to its destination. Customers are effectively satisfied with this approach of management and lead to positive results in the company. Management of logistics can be defined as the effective governance of functions of supply chain management and efficiently supports the process and improve the productivity and profitability of the company by providing customer satisfaction by fulfilling their needs and demands (Selvaridis, 2015).
There are included various activities like inbound and outbound transportation management, warehousing, material handling, network design and inventory management, planning of demand and supply and their management etc (S, 2016). There are also degrees of logistic management operations in the organisations like customer services, sourcing and procurement, manufacturing planning, scheduling and packaging of products and their assembling. Logistics management is the integration between different organisational activities like marketing, sales, finance and information technology and this helps in improving the level of effectiveness in the organisational performance of the company (R?dulescu, 2012). Logistic management is of the following types.
Inbound and Outbound Logistics- Inbound logistic includes all the process from purchase of raw material to the finished goods within organisation. Outbound logistics includes process from finished goods to delivery to customers (R?dulescu, 2012).
Transportations and logistic-These are two terms which includes different aspects of transportation and logistics like communication, customers, warehouse etc (Muangpan, Chaowarat & Neamvonk, 2016).
International Logistics and Global Logistics- Managing overseas activities of as a single business unit by using global logistics and provides different services on uniform basis (Jim Wu, 2013).
Strategies of Logistics management
Logistic management should be adopted by every organisation as in to improve its supply chain management results as in logistics management supports the process of supply chain management. There are various aspects are there which makes impact on the selection of effective strategy of logistics management in the organisation. In the present dynamic business environment supply chain process changes and this make impact on the logistics of the organisations and to ensure the adoption of flexibility in this process there should be adopted an effective strategy of logistic management which can provide feasibility in the organisations activities. The following are some of the strategies of logistic management which can be adopted by any organisation to smoothly execute its activities (Hu & Sheu, 2013).
Product development Strategy
The effectiveness of any organisation is based on its effective and efficient products as in it is important to satisfy customers by fulfilling their demands and expectation. Product development strategy is adopted by management in its process of logistic management to provide effective customer services and retain them for long with the organisation. Management of the organisation has to ensure that customer demand and requirements are fulfilling. There must be effective analysis that there is requirement of any change in the company due to maturity of its product cycle and required improvements and modifications in product chain or introduction of new range of products which can improve the market situation of the company by giving it fresh approach of marketing. These are the strategic decisions which are taken by the management of the company in which they can also acquire any company and also can sell a part of the company. This strategy of logistics management provides a speed and improvement to the overall supply chain management process of the company (Gruenwald, 2013).
Customer expectation strategy
Expectations of the customers are one of the most important factors for any business or organisations hence there can be executed a logistics management strategy. While making any strategic decision which will make impact on the organisational activities for long term there should be considered determinants and customer expectations is one of them. All the activities are executed in the company are to earn more profits by increasing customers of the company. Customers must be segmented effectively before starting the production process as in this segmentation provides effective analyses of different expectations of customers and organisations can focus on a specified segment of customers and can target its manufacturing process in that direction. This strategy of logistic management helps in provides effective customer services by satisfying them in an effective manner. Organisations can adopt this approach to satisfy the demanding and more critical customers which is beneficial for the organisational growth (Fr?? & Romanow, 2014).
Advancement of technologies in manufacturing process
Manufacturing infrastructure and technologies are essential and plays important role in the process of effective running of supply chain management process of any organisation. There are provided various aspects which are making impact on the strategic decision making in the company which will influence the overall process of logistic management. In the present changing environment where there is important to adopt the various technologies which changes and modifies with this changing environment, organisations should change according to this changing environment and provide efficient quality to the organisational manufacturing activities. Strategic decision making related to the manufacturing activities in the process of logistic management is very important for the companies to improve their production quality and quantity. Adoption of this strategy of logistic management helps in adopting advanced technologies which can improve the production of the company and help in achieving cost and time efficient production. This leads to achieving organisational goals and objectives effectively and efficiently and provides competitive advantage to company among its competitors. This strategy helps in improving the market positioning of the company (Fanti, 2015).
Networked economy strategy
In the present business environment where all the market activities are related to each other and form network, just like that the economy is also related with each other and making a network. Growth of the company is not only limited to the aspects related to the factors of company but are also expended in various aspects of the economy. Any manufacturer and service provider should adopt this strategy in its supply chain management to effectively identify different factors which are important in overall process of the company and are worth to be considered in this process of logistic management. Company should collaborate with different partners and related persons who can make impact on the organisational activities and there are also defined various aspects which can make impact on the organisational financial position. This strategy helps in making effective relationship between organisational effectiveness and economical aspects (Cronjé, 2015).
Cost effective strategy
Logistic management is adopted to support the supply chain management in the company which can increase the cost efficiency in the organisational activities in any organisation and this can make impact on the overall growth of the company. Customers expect most cost efficient products with effe4ctive quality in it and this can be done by adopting the cost effective strategy in the organisational activities. The cost of logistics plays important role in the process of determining the level of cost involved in the company’s production process and can lead to identify various aspects which can make impact on the process of making production process more cost efficient. Logistic functions plays important role in the process of the effective execution and success of supply chain management of the company. This includes various aspects like fulfilment of orders is treated as an important part of the supply chain and influence the overall performance of the company. Strategic decisions related to these aspects are taken by the company and make impact on the process of effective logistic management in the company (Choi, Chiu & Chan, 2016).
The present business environment where there exists globalisation it becomes challenging for the organisations to exist and compete in this changing environment. Therefore there are adopted strategic decision making by way of using supply chain management and logistics management which can help in compete in this dynamic environment by way of adopting volatility strategy of logistics management in its actions. Demand and supply are also changes in accordance with the change in the environment and market situations. This leads to increased uncertainty and instability in the organisational performance which must be effectively managed by managing the market fluctuation by way of taking strategic decisions in the company which can support the supply chain management and logistics management in the company (Chen, 2012).
Risk management strategy
Most of the companies adopt supply chain management in their strategic management process to mitigate and diversify different aspects of risk and all the related impact which can be made by the existing risk in the company’s activities which can lead to huge loss in the organisation. Stability can be increased by adopting this logistics management strategy in organisation and can lead to overall growth of company (Ceniga, 2015).
Sustainability management strategies
Different organisations having different attributes and characteristics which can be of different sizes and turnover should adopt sustainability in its activities which can increase in the organisational effectiveness and can help in build effective position in the market of the company. Corporate social responsibility should be adopted by strategic management as a strategy of logistic management which increases value and morality in the activities of the company.
Applicability and effectiveness of Strategies of logistics management in the case study of Nike-
In the given case study we have analysed different issues related to ineffective management of logistic which is affecting the process of supply chain management in the organisational activities (Brekalo, 2016). The various aspects which are discussed were the product differentiation and organisational structure of the company which is affecting the distribution centre which is established in different places and serving customers of different territories. This process of placing order and providing distributing using transportation as the main logistic is making the products of the company more expensive and also affecting the customer satisfaction by not providing cost efficiency and time efficiency to them as in to place their orders. The seasonal aspects of demand and production of the company is also concern for the ineffective management of supply chain. There are various strategies of effective logistics management which can support the process of supply chain management to provide positive result in the company like production process and technology development strategy, customer expectation strategy, effective risk management strategy, cost effective strategy, volatility and sustainable development strategy.
The product development and technology advancement strategy can help the company to enhance its supply chain management in effective way by providing new strategies and techniques to develop and upgrade the existing product or innovation of a new product range in the company by using advanced technologies. This will provide new and fresh marketing strategies to the company which can be used by the company to establish a new brand image of the company (Bosun, 2014). The organisational structure should be considered by the company before selecting any strategy as in there should be adopted decentralisation in the distribution activities of the company which will help in effectively managing the activities of the company and provide cost and time efficiency in the organisational activities. For this purpose cost efficiency strategy should be adopted by the company. There is ineffective planning of the demand and supply in the company which is increasing the chances to imbalance between demand and supply of the company and also the human resource is planned inappropriately of the company and this is affecting organisations performance. Human resource is also part of the logistics of the company and therefore there should be adopted volatility and risk management strategies which can effectively identify the changes in the market or environment and can help in effectively manage them to protect the company from any inconsistency (Bing, 2016).
This report is a detailed study of various aspects of effective strategic management due to supply chain management and logistics management in a company and its importance and role which is unavoidable. Logistic management is a tool of effective management and cost and time efficient activities in the organisation which includes all the activities from purchase of raw material to delivery to customers are controlled, implemented and managed by the logistics management. There is analysed a case study of Nike which is having its distribution centre which is working on the approach of centralisation it its distribution activities which is not suitable for the organisational structure and supply chain of the company. Human resource is not effectively managed by the company which is due to ineffective strategic management failed in making effective planning and logistics management in the company. There are defined various strategies which are effective in the process of logistic management and can help in achieving the organisational goals by making the supply chain management process successful. We have also discussed the impacts and applicability of these strategies in the business of Nike which can help in improving the organisational outcomes of the company in a positive manner.
This project report has defined various aspects of the role and impact of logistic management in the process supply chain management which is a tool of strategic management in the organisation. Logistics are important part of any organisation which is providing manufactured products and services. There should be adopted their effective management process by way of making them aware by defining their importance and benefits in the organisation which can increase the organisation’s performance and productivity and can generate huge profit. The level of smoothness in the organisational activities comes by using these management strategies must be discussed within organisation and must be adopted. The level of integration and networking should be increased between the production and other activities of the company which will result in the effective understanding in the organisation of these activities which can result in the most positive results. There should increase more flexibility in the activities of supply chain management which can be done by logistics management in the company.
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