Beverage Industry Logistics

2909 WordsJul 8, 201812 Pages
Designing the optimized distribution network for carbonated soft drink industry Introduction National and International businesses are becoming ever more dependent on logistics and supply chain management in order to keep pace with the demands of an increasingly global economy. This is why business leaders acknowledge that the supply chain can be a value creator and a source of competitive advantage. Logistics management is defined according to The Council of Supply Chain Management Professionals (August, 2013) as “Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of…show more content…
The key concept of supply chain management is to combine all parts of the supply chain (both internal and external) of an organization. A comprehensive definition of supply chain management is described Stock et al (2009) as: “The management of a network of relationships within a firm and between interdependent organizations and business units consisting of material suppliers, purchasing, production facilities, logistics, marketing, and related systems that facilitate the forward and reverse flow of materials, services, finances and information from the original producer to final customer with the benefits of adding value, maximizing profitability through efficiencies, and achieving customer satisfaction.” There are four broad areas mentioned by Stock et al (2009) in the above definition of Supply Chain Management: 1. This relationship shows supplier customer relationship. All business entities are either supplier or customer. 2. All departments with and without the organization are dependent to each other. A department cannot survive alone within the market. Team work is essential internally and externallyin the organization. 3. It is a
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