1. KLF Electronics is an American manufacturer of electronic equipment. The company has a single manufacturing facility in San Jose California. (20 points)
KLF Electronics distributes its products through five regional warehouses located in Atlanta, Boston, Chicago, Dallas, and Los Angeles. In the current distribution system, the United States is partitioned into five major markets, each of which is served by a single regional warehouse. Customers, typically retail outlets, receive items directly from the regional warehouses in their market area. That is, in the current distribution system, each customer is assigned to a single market and receives deliveries from one regional warehouse.
The warehouses receive items from the
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(20 points)
In the supply chain for breakfast cereals, everyone has its own competing objectives which inspire them to produce the product by giving his best possible effort. In the supply chain, the objectives of the farmers are to produce the best quality raw materials and earn maximum profit for him and his family. He wants to sell it at the best possible price and puts all his efforts to produce the cereals. The competing objectives of the manufacturing division of the company are that they should produce the quality and type of product that is demanded by the customer. Its main aim is to acquire efficiency in production and to produce better than its competitors.
The logistics division of the company also has certain competing objectives. It works with the objective of managing all the materials and manpower related activities. It handles the storage of materials in an efficient manner. The management of transportation, purchasing of raw materials, storage and supply of finished products are the main aim of the logistics division. The objectives of the marketing division of the company will be to market the product in an attractive and effective manner. The packaging should be attractive and should display the special qualities of the products. It also has the objective of deciding the pricing and promotional
Even in staple consumer goods, today 's environment is characterized by explosion of variety. How the company manages its supply chain in such settings influence business results and customer satisfaction.
Food and beverage industry today has become one of the most competitive industries in the world. Recognizing that supply chain management is a core strategy and achieving world class performance in this strategy by developing and managing supply chains that provide flexibility, response time and delivery performance that exceed the competition is a key to survival in the food and beverage industry. The largest production sectors of food industry are brewing, milling, baking, confectionery, animal and vegetable oils, sugar, dairy products, fruits and vegetables, soft drinks, fish and meat processing, ethyl alcohol distillation, sprit blending, wines, bottling of natural spring .
Therefore, the company’s distribution plan of products is required to be flexible since each product has to be moved around the world and forecasting is an important key in logistic activities. The shipper must be able to adjust and deal with a swing in business activity. This may require a versatile transportation plan to keep the global supply chain moving smoothly. Moreover, the company also focuses on the cost of every painstaking aspect of the shipping process. The smaller the product packaging means the higher number of items that can fit into an individual case. The more cases that can fit into the shipping container means a larger number of items that can be shipped at one time. This cuts down on the transportation costs of fuel, paid driver hours, and vehicle maintenance cost. All these savings can be passed on to the customer who comes back to the manufacture and the shipper with customer loyalty.
In today’s world, competence is taking on new dimensions. The ability to compete is being determined by the degree of responsiveness to customers & key issues handling. How fast you deliver the goods/ products, what the price paid by customers & what value customer is getting throughout the service is considered in a schematic & ordered way. Markets are quick demanding & customization of each logistics activities is essential for each customer, & has become the essential factor in logistics management.
The concept of logistics involve planning, delivering and controlling, George Dixon's company is situated near to a busy port and agricultural areas, in addition, this company also bought a cold storage near to their location so they can take fully control over the flow of physical goods, marketing materials and information from the manufacturer to the market to meet the customers need.Keeping up an association's aggressive edge implies understanding and actualizing a viable advertising coordinations procedure with respect to product, price, place and promotion.
Market focus orientation is a strategy in which every plant manufactures the whole product line for its specific market. Since it is a subsidiary of ISOL + Group, the logistics department should primarily focus on France and develop its product line based on the needs of its respective market. Secondly, the logistics network design should have product family focus and process focus, which entail specializing in a particular product family and certain steps of the production process respectively. These orientations will enable the subsidiary to maintain its current logistics budget while increasing its sales volume and enhance service
A critical aspect of logistic management is managing inventory moving raw materials into the facility and moving finished goods out to customers. Moving finished goods out to customers is known as distribution. Distribution refers to the process through which goods and services go on their way to customers. The faster and more accurate accompany can fill customers order , the lower the cost for the organization the greater the likelihood that the customers will return .Dell uses a direct channel of distribution. Logistics management helps to contain costs as it relates to transportation when it is well coordinated. Example :when a customer orders a pc from Dell using the direct channel of distribution a courier is contracted to deliver the product to the customer in a specified. With logistics management a customer will be able to receive products ordered on
For any production and distribution to be successful, then it should be able to produce quality goods and products. It should also ensure that the goods get to the customer in good condition and on time among others. This is achieved through efficient and effective production and distribution logistics. Customer orders may face delays in delivery and therefore not meeting customer satisfaction, which could cause problems with customer retention. Analysis of data helps in coming up with the best actions that a manager or a CEO should take. This paper seeks to discover the factors that affect distribution in any given organization.
The supply chain management basically involves processes and activities which are involved in the planning, organising, controlling and implementing the cost effective flow of goods from the point of origin to the point of consumption. The whole process will have different players like the supplier, manufacturer, distributor, retailers and the customers themselves as the end point of consumption. The supply chain has changed drastically over the years. This days they are very global in nature. Involving various complex interactions and flow of goods, data and funds between companies which are situated in different countries and continents. Even though the companies are spread across the world the manufacturing plants generally follow a similar structure which normally comprises of the suppliers, manufacturing plants, distributors, retailers, inbound and outbound logistics providers. There were a lot of challenges which arose because of the competition which made the companies to rethink their strategies in order to get the product to the right place at the right time at the lowest cost possible. The companies should always look at improving the whole supply chain and every player in the chain should coordinate with one another if they want to increase the efficiency. The organisation should realise the strategic importance of supply chain as it is a key to building a sustainable competitive edge. (Li, Ragu-Nathan, Ragu-Nathan, & Rao, 2006).
Inventory handling is very crucial as per the physical distribution management is concerned. This is because it has direct influence to satisfaction of customers. Inventory levels are said to a function of market type within which the company operates. Therefore companies should not run out of inventory so as to maintain their customer base. Transport is the influence of distribution cost. Therefore the chosen mode of transport should be at apposition of protecting the goods from damage thus not endangering the future of the business. In reference to the article regarding the distribution centers, several retailers like the Tesco & Sainsbury have diverted all their warehousing to various logistic companies to offer transportation services. In an economic point of view, marginal cost (MC) is equal to marginal revenue (MR), (Acemoglu, 2012). This statement also applies to marginal marketing expense (MME) equals to marginal marketing response (MMR). This will only occur when there is an increment in the service levels. In conclusion, the knowledge of physical distribution is only essential to purchasers and work study management can be related to PDM since it entails accuracy and efficiency. On the other hand, logistic structure should not be nonflexible but can be
Logistics is the administration which synchronizes such giving activities as acquirement, processing, bargains, and dissemination with requests. It plans to upgrade corporate aggressiveness and increment corporate esteem by acknowledging satisfaction of clients' fulfillment, reduction of unfruitful stock and minimization of its exchange, and decrease of supply expenses.
During last two decades, the importance of logistics has been noticed around the world. In global markets, the effects and further developments of logistics and supply chain management for corporate success has increased significantly that result in a large amount of companies have taken actual benefits in logistics, such as reducing costs, enhancing customers ' satisfaction and increasing sales. However, some people are confused with the relationship between logistics and supply chain management, what logistics or logistics management is and what supply chain management is, weather or not that they are the same meaning in operations. Therefore, this essay will argue that logistics management and supply chain management are not exactly the same in operations because of the scope where utilized and some specific activities are similar, but some are different. In the end, this essay will also talk about the reasons for logistics management is a important strategy to manufacturing or service companies.
3. The objective of logistics is to obtain efficiency of operations through the integration of all material acquisition, movement, and storage activities in the firm.
Part of logistics management, physical distribution is concerned with the transporting of merchandise, raw materials, or by-products, such as hazardous waste, from the source to the customer. A manager of physical distribution must also assess and control the cost of transporting these goods and materials, as well as to determine the most efficient way to store them, which usually involves some form of warehousing. Hence, physical distribution (PD) is concerned with inventory control, as well as with packaging and handling. Customer relations, order processing, and marketing are also related activities of PD.
What is logistics? It is management process of the movement of resources it can be either raw material or finish goods between source of consumption and the end user i.e. customer, organization to meet requirements. There are various definitions in the literature or in the business world; the most suitable definition is the overall relationship between supply, material management and the distribution (Rushton A. ). This logistics concerned with physical as well as information flows, not only that it use in the storage form the raw material to final distribution of the finish good. In the logistics process physical items frequently involves the combination of material handling and the material flow, production, information