By Donald Waters, Stephen Rinsler
The sector of logistics keeps to advance at a awesome velocity. till lately, logistics used to be slightly thought of within the long term plans of even significant businesses, yet its strategic function is now famous and it lies on the middle of long term plans in virtually each company. there are lots of purposes for this variation. Communications and knowledge know-how are supplying new possibilities; global alternate is turning out to be; new markets and assets of fabrics are establishing; festival is forcing operations to undertake new practices and turn into ever extra effective; relative expenses of companies and fabrics are altering; and there's expanding crisis for the surroundings. upload to this the elevated emphasis on consumer pride, versatile companies to get their logistics correct.
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Extra info for Global Logistics: New Directions in Supply Chain Management
In fact, centrally planned economies did not need logistics. 15 Achieving legendary worst practice business and logistics practices in CEE must have exceeded expectation in a number of areas! Logistics, if any, was oriented towards purchasing, not towards selling, and its characteristics were: zzno or poor customer focus; zzno or poor sales forecastingâ†œæ¸€å±®/â†œæ¸€å±®order processing (customers went ‘shop- ping’ in production); zzlack of information systems; zzno or poor management of finished goods; zzno or poor material flow structures (internal and external); 24â•… â•… Global logistics zzno or poor quality focus on warehouses and transportation; zzno third party available (either own truck fleet, or customers’ trucks); zzvery high stocks of raw materials (… if available, buy as much as you can); zzvery high stocks of packaging materials; zzvery long lead times, with loading times up to 12 hours; zzscarce palletization of products, leading to double and triple handling; zzpeople not familiar with Western logistics management tools, but with very good technical preparation.
New directions in logisticsâ•… â•… 13 Summary zzBusinesses in all types of industries are placing far greater emphasis on the design and management of logistics processes and the integration of those processes upstream and downstream with those of suppliers and customers. zzThe business of the future will undoubtedly be market-driven, with logistics processes providing a critical means for achieving corporate goals. zzIt will be a highly coordinated network of outsourced flows of materials and supplies, integrated through an information system that reaches from the ultimate consumer to the far end of the supply chain.
Thus the successful companies will be those whose supply chains are more cost-effective than those of their competitors. What are the basic requirements for successful supply chain management? 2 outlines the critical linkages that connect the marketplace to the supply chain. The key linkages are between procurement and manufacturing, and between manufacturing and distribution. Each of these three activities, while part of a continuous process, has a number of critical elements. 2â•… Critical linkages in the supply chain New directions in logisticsâ•… â•… 5 Procurement Typically in the past, supply management has been paid scant attention in many companies.
Global Logistics: New Directions in Supply Chain Management by Donald Waters, Stephen Rinsler