INTERNATIONAL BUSINESS
CASE STUDY NO. 2
GROUP MEMBERS:
WAN MUHAMMAD ‘ATIFF WAN AHMAD RAFIDI 1017661
ASHRAFF BIN RUSLAN 1012097
MUHAMAD IZZAT BIN ZAINUDDIN 0922943
INTRODUCTION
The supply – chain and logistics industry includes companies that move raw materials, finished goods, packages, and documents across the globe. It is one of the main phases in value chain concept in international business. The massive increase in the international trade has increased has increased the complexity of company supply chains. MNEs and other internationalizing firms require speed and efficiency in moving goods via supply chains around the world. To fulfil this need, competent logistic service providers
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Robust processes are at the heart of supply chain performance. Internally, robust processes help to reduce costs by eliminating errors, and help to increase dependability by making processes more certain. When quality was positioned second to sales growth and cost, even the iconic Toyota Motor Company’s brand suffered – as a string of recalls and safety concerns in recent years has shown. In many logistics situations, ‘quality of service’ is concerned with selecting the right quantity of the right product in the right sequence in response to customer orders. For example, store orders must be picked from a range of thousands of skus (stock keeping units) at a Tesco RDC. This must be carried out accurately (correct sku, correct quantity) against tight delivery schedules day in and day out. Pick accuracy (for example, 99.5 per cent correct sku and correct quantity) is widely used to measure the quality of this operation. And increasing requirements for in-store efficiencies mean that categories of product (for example, shampoos and toothpastes) need to be picked in a set sequence to facilitate direct-to-shelf delivery at the store. Logistics service providers who can implement and maintain the highest standards of service quality place themselves at an advantage over those who cannot. Secondly, time advantage. Time measures how long a customer has to wait in order to receive a given product or service. Volkswagen calls this time the customer to
Due to the large quantity of freight and the long distance that it must travel to arrive to its destination exporters and importers alike have found logistic service providers essential to engage in international trade (Rodriguez, Comtois, Slack, 2013). While some Logistics service providers focus only on the area of transportation others specialize in freight consolidation, distribution management, and warehousing (Robinson, 2014). They have enough market knowledge, information and communication systems to offer supply chain solutions tailored to the specific needs of any company be it small or large (Rodriguez, Comtois, Slack,
Logistics is one of the main functions within a company, and the supply chain is a complex and sometime fragile global endeavor dependent on a network of independent, yet interconnected, moving parts. It requires professional management. Supply chain professionals order the product, build it, move it, ship it, distribute it, and drive the coordination processes with marketing, sales, engineering, manufacturing, finance, and information technology. In short, they make any business effort seem effortless.
(Bowersox, D.J., Closs, D.J., and Cooper, M.B. (2010). Supply Chain Logistics Management. (3rd Edition) New York, NY: McGraw-Hill/Irwin.
A fundamental part of society since the beginning of time has been the trade of information, cash, and physical goods between at least two separate parties. Whether it is amongst consumers, businesses, or between a business and a consumer, it has always existed in some form. As time passes, our knowledge and technology have advanced therefore creating a stronger supply chain process. A basic logistic service, a means of transportation and storing are what enable trade. In order to have an effective supply chain process, the supporting needs need to be accessible and effective for all parties involved. In the book Logistics Clusters by Yossi Sheffi, he thoroughly explains the current
There are many challenges being faced by the logistics industry today as the companies strive for sustainability. This is because the providers of logistics services have, over a period of several years, found them being integrated into the production processes of their customers, while at the same time, governments and businesses have continued to carefully weigh the issue of logistics in their investment and business decisions. Some of the previous trends and the forces of the operations of logistics that drive the transformation of a Freight forwarding company will be examined. It will focus on theories, conceptual models and frameworks that explain logistic operations. The gaps in the logistics operations and the dangers of not addressing
Coyle, J. J., Bardi, E. J. & Langley, C. J. (2003).Management of business logistics: a supply chain p
Oakden, R., Leonaite, K. (2011). A Framework for Supply Chains Logistics Operations in the Asia Pacific Region. Sydney NSW: McGraw Hill. Chapter 1, Topic: Value chain. (pp. 6).
It is known to us, “in each industry, the customer is god, is operator's food and clothing parents.” This tells us that customers are important to organizations. With the current intense competition in logistics nowadays, most companies can provide high quality goods, even are willing to cut down prices if reasonable. However, how can suppliers gain a competitive advantage when high quality is expected and price must be maintained at a level to generate a reasonable return? In our views, it is no doubt that how various supplier service activities are valued by customers, more specifically, that is, the ability of logistics
However, as one looks to the future, technology will play an essential role in enabling the desired changes. Technology will help make feasible the new logistic capabilities needed to support future industrial concepts and the type of efficient, responsive logistic system that business forces will demand”.[1] Traditionally, China is a country with relatively weak formal institutions; more importance is given to informal constraints, e.g. personal relationships. As a result, Chinese companies rely upon a network-based strategy of growth, based on personal trust and informal agreements among managers. These are important considerations for managers when forming business relationships and designing their supply chains in China. “Although customers are spending more on average for logistics outsourcing, the percentage of budget devoted to outsourcing logistics, and the services outsourced, haven’t changed dramatically over the past several years. Companies continue their general tendency to outsource relatively commoditized services”.[2] As a result of the market shift from cost-driven to quality-driven in the near future, the strategies for logistics service providers will include: more flexibility, quicker handling, better price stability, higher transparency and increased professionalism, in order to meet the challenges. “The next five years will see a significant increase in outsourcing activity. 3PLs will be the main beneficiaries of this process and as the
There are many benefits of understanding the international context of business trade and logistics. To achieve competitive advantage, even within small firms, it is necessary to gain expertise in the international logistics activities which are much more complex than what domestic trade involves. The world’s economy is increasingly global, and the logistics sector designates a significant fraction of that economic activity, the estimated total stands at $7. 4 trillion dollars (David, 2013, p. 53). Technology and electronic communication have facilitated customer demand fulfillment and the movement of products. For someone in business it is critical to understand the continued growth in international trade, drivers of international trade, and the possible barriers in the international infrastructure.
Blanchard (2006) defined third party logistics as, “A single entity that coordinates all the logistics requirements for a given company/agency.” Today’s world business environment has become so competitive that companies in order to be successful in the market must deal with different resources for satisfying their customer need. In the past decade or so the competitive global market has made a big influence in the growing for external business. Third party logistics providers are more and more employing external companies for inventory management, transportation, warehousing, and other value added activities for customer services. Third party logistics ultimate goal is to provide a competitive advantage to the organization for which they are serving. According to Cardinal Logistics (2012), “Third-Party Logistics is an effective way to reduce operational costs, and allow a company to focus on their core competencies.
by Seyed-Mahmoud Aghazadeh Abstract The purpose of this article was to identify the steps that need to be taken when choosing an effective third party logistics provider. Based on the research completed, it was determined that third party logistics are beneficial to many companies. The use of third party logistics provides a competitive advantage in today’s business world. The optimal solution for a company choosing a third party logistic provider would be a five-step process. Introduction The
Following the paradigm shift on the role of logistics management in the recent decades, there has been a wide recognition of this as a very important aspect a business strategy in general. However due to the numerous factors promoting complexity of logistics management companies have adopted the idea of outsourcing their logistic activities to Third Party Logistics (3PL) providers. Hence, 3PLs have taken a critical role towards supply chains of heir customers.
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where
Working for International Logistics Inc. and being such an integral part of the growth of this company has been a real honor. Looking towards the future of International Logistics Inc. it is important to focus the company’s attention towards new international ventures in order to keep up with globalization. Working as the international logistics manager it is important to look at the pros and cons of possible export countries that would be most beneficial to the United States and International Logistics Inc. The need for thorough research of the possible country and market is