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Logistics and Supply Chain Management - Essay Example
In the present day competitive business environment firms are more and more compelled to reorient their business strategies by shifting their focus from traditional cost-based strategies more towards time-based strategies. When the customers are confronted with the choice of competing products having same quality and price levels the decision normally goes in favor of products that are delivered fast…
A proper integration of functional and cross functional activities on the basis of product flow is also required to further the supply chain efficiency. The answers to the following questions elaborate on these aspects of supply chain management.
In the present day business environment firms can enhance their competitive strength by efficiently managing their supply chain. The typical supply chain in any manufacturing firm consists of various firms and agencies taking part in the purchasing, production and distribution functions of the firm. The objective of an effective supply chain management is to ensure that the costs involved in procuring the materials and components, cost of carrying the inventory of various materials and the cost of distributing the products to the end customers are reduced to the maximum extent possible so that the profitability of the company can be improved. In the process of improving the efficiency of the production process techniques like 'just-in-time' manufacturing system helps the firms to achieve the objective of cost reduction and minimization of production time. It is also important that there is an effective information flow between various supply chain partners. ...