ASYNCHRONOUS ACTVITY-05

Supply Chain and Logistic Management

Student Name: palvi

Student ID: 500187201

Course Code: BUSI3005

Instructor Name: Mr. Jaison Matthews

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Class Activity # 6

Student Name: palvi__________________Student ID #: ___________500187201_____

A. Explain the following based on Supply Chain Management:

1. Logistics Role in Economy – National, Regional and Global

In the late 1940s, the breadth and importance of logistics grew. The military was the only entity that
used logistics in the 1950s and 1960s. Logistics has been regarded as one of the most significant tools for
building competitiveness, and its reach has been extended beyond the army.Logistics aids in the delivery
of items and services to customers as and when they are required. It also aids in economic transactions,
acting as a key enabler of trade and commerce growth in a given country.

The globe has become a global village, with commercial organisations being obliged to offer items
beyond their national borders as a result of liberalisation and globalisation. In such scenarios, logistics'
responsibility is to ensure that clients have access to items at the right time and in the right
place.Businesses are also attempting to achieve competitiveness. In order to survive, they have moved
their attention to supply chain and delivering value for money to their consumers. Logistics plays a
crucial role in the process of delivering value, and logistics planning and support play a big impact in how
successful supply chain management is.

National-The logistics business contributes significantly to the national economy by providing jobs,
generating national money, and attracting foreign investment. In addition, the logistics industry has a
critical role to play in reviving and improving the competitiveness of other industries.

Regional-The thesis conducts a quantitative examination of the contribution degree of logistics to GDP,
as well as associated industries such as manufacturing, using yearly statistics that represent the
indicator of area economy development. The results of empirical investigation revealed that the
development of the logistics business has a significant impact on regional economic growth. However,
the disparity between places is greater, and in addition to barriers and other systems, local benefit, the
logistics industry leader does not have to completely express. As a result, this study makes the case for
logistics industry innovation.

Global-Transport and logistics services facilitate international trade and contribute significantly to the
local economy's growth and development. Within the local economy, logistics services establish sectoral
links. It also ties the domestic and international economies together. In today's market, logistics are
critical. Improving trade logistics infrastructure, such as roads and highways, ports, trains, airports,
especially dry ports, warehousing infrastructure, and labs and testing facilities, is critical for the
country's long-term economic growth.

2. Logistics integration with SCM- The phrase logistics integration can be defined as the degree to which
a client firm strategically engages with its LSP to manage its intra- and inter-organization operations in
the context of logistics and SCM. Firms place a high level of strategic importance on logistics integration
in a network-based business environment. Logistics integration is currently a broad word that refers to a
variety of cross-functional operations including the logistics and marketing departments, the IT
department, and other departments. Highly integrated logistics procedures entail dynamically
coordinated business processes both inside and outside the firm. Over time, the role of logistical
functions in the company has shifted dramatically. Previously, logistics integration was a hazy concept.
Until the 1970s, logistics activities were generally carried out in-house and were frequently viewed as a
cost centre with limited differentiation potential. Firms began to outsource their logistics activities to
LSPs, which support a client firm's supply chain operations such as procurement, inventory control,
warehousing, and transportation [10]. This traditional perspective changed in the 1980s as firms began
to outsource their logistics activities to LSPs, which support a client firm's supply chain operations such
as procurement, inventory control, warehousing, and transportation. Treating LSPs as strategic partners
in enhancing supply chain performance has resulted in this new outsourcing approach. Such a viewpoint
has highlighted the fact that logistics integration entails more than just information sharing among
supply chain partners. As more companies become aware of the benefits that LSPs provide, logistics
outsourcing has become increasingly widespread. LSPs may now assist clients in moving beyond cost-
cutting to more strategic, value-creating operations in the supply chain.

3. Logistics Management’s Value-Added Role-Logistics provides location utility by transporting products

from points of production surplus to points of demand. Logistics increases the economic value of
commodities by extending the physical boundaries of the market region. Place utility is an increase to
the economic worth of products and services.

It is the additional value to items as a result of a manufacturing, production, or assembly process. When
raw components are joined in a planned way to create a completed product, for example, form utility
occurs. For example, when a bottling company combines syrup, water, and carbonation to form a soft
drink, this is the situation. The basic procedure of combining the raw elements to make the soft drink
reflects a change in product form that increases the product's value.

Certain logistical tasks might also bring form value in today's economic environment. Breaking bulk and
product mixing, for example, both of which are generally done in distribution centres, alter the form of a
product by altering its shipment size and packaging features. Unpacking a pallet of morning cereal into
individual customer-size boxes is an example of product utility.

4. Logistics Management Role in Order fulfillment- While order fulfilment is defined as the
process by which a company executes a sales order according to the customer's criteria, this
understates the importance of the process. Customers have more power, are more
knowledgeable, and have more expectations than ever before. Order fulfilment efficiency is
critical to your brand's reputation, earnings, and capacity to retain customers. The order
fulfilment process takes place in one or more distribution centres and often entails inventory
management, supply chain management, order processing, quality control, and help for
customers who need to report issues, exchange products, or return them.

1. Product inquiry
2. Sale quote
3. Order configuration 
4. Order booking 
5. Order acknowledgment / Confirmation 
6. billing 
7. Order Planning 
8. Order changes 
9. Order processing
10. shipment
11. Track and trace
12. delivery
13. Settlement 
14. returns

5. Logistics’ Management Role in Avoiding Stock-outs-Keeping your online retail business's

inventory levels at optimal levels is frequently easier said than done. At the best of times,
customer demand can be erratic and unpredictable. We'll show you how to cut stock levels
and avoid stock outs so you can keep your inventory under control and develop your
business. If you stock too much, you risk increasing your costs, but if you stock too little, you
risk completely running out of a product. It's no easy task to achieve the proper balance.

 Master your lead times- If they could teleport things into your warehouse in real
time — with no lead periods – your company wouldn't need to have inventory in
the first place. Your goal is to reduce lead times as much as possible in order to
 satisfy consumer demand and reduce the period between paying for stock and
getting revenue. You can keep accurate stock levels in your inventory this way.
 Automate tasks with inventory management software-If you stock too little, you
risk experiencing stock outs, which can result in dissatisfied consumers and lost
sales. If you stock too much, on the other hand, you'll be wasting valuable
warehouse space and likely incurring additional penalties. Fortunately, inventory
management software can assist in preventing this. You'll be able to keep track of
low inventory levels and rapidly pinpoint reorder points for each of your products,
avoiding stock outs.
 Calculate reorder points-The time it takes to place a new order before your stock
exceeds the threshold is also factored into an optimum inventory reorder point. To
put it another way, when the stock level for one of your goods is close to approach
the reorder point, you should promptly make a replenishment order. The
advantage of employing reorder points is that you will never run out of stock.
 Use accurate demand forecasting- Demand forecasting based on reports and
previous sales data helps you to order just enough product to meet demand
throughout the year, lowering inventory costs by avoiding overstocking or
understocking your warehouse. Furthermore, predictive data analysis helps you
make better business decisions based on prior months, such as estimating the
optimal inventory amount. This manner, you don't order too much product and
don't run the risk of running out of stock.
 Try vendor manged inventory- As a retailer, this relieves you of the strain of daily
inventory management and product reordering, allowing you to concentrate on
building your company. A VMI system ensures that you have a consistent supply of
inventory and that your items are constantly available, eliminating the danger of
stock outs.You don't have to replenish things at the last minute, and you don't have
to worry about whether your suppliers can resupply without disrupting your
business. A vendor-managed inventory can also assist you in reducing stock levels.
 JIT inventory system- Just-in-Time (JIT) inventory management is a strategy for
keeping essentially no inventory in your warehouse and ordering only what you
need when you need it. It helps you save money by ordering things and materials
only when they're needed, rather than months or weeks in advance. This also
lowers your inventory costs.
 Use consignment inventory-Traditional inventory procedures differ from
consignment inventory in that the supplier keeps ownership of the stock until it is
sold to the client. To put it another way, the retailer does not pay for a product until
it is sold.As a result, your inventory levels are reduced, and inventory carrying costs
are shifted from your company to your supplier or manufacturer. It's a frequent
practise in retail for big-ticket products like furniture and other large items. When
client demand for certain products is unpredictable, online retailers can benefit
from using consignment inventory techniques.

References

https://www.linnworks.com/blog/reduce-stock-levels-stock-outs

https://www.netsuite.com/portal/resource/articles/erp/order-fulfillment.shtml
https://www.google.com/search?
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https://jqualityinnovation.springeropen.com/articles/10.1186/s40887-020-00039-w