Logistic Service Provider

2102 WordsDec 5, 20129 Pages
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…show more content…
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
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