Logistics Operational Consideration For Operating Globally

Question answers, Don’t write short answers, please include a series of content, integration, and synthesis related to the reading assignments.  The questions will cover the content of the material and will require the Learner to think critically and contextually about the subject. At least couple of paragraphs per question or more as required.

Discuss the logistics operational considerations for operating in a global environment.

Describe some of the strategies that firms can use to overcome the challenges related to transportation infrastructure congestion.

Explain how a firm’s logistics and supply chain strategy evolves as it shifts from no international strategy to a global strategy to a transnational strategy. What are the challenges as the firm evolves through each?

Describe and rationalize the distribution network that would result for products with the following characteristics:

Electronic products with high value that are relatively small and light;

Canned food products with low value and relatively high weight;

Medical products for which the hospitals and clinics expect the supplier to provide four-hour delivery service; and

Aircraft spare parts that are high value, relatively small, and critical to the ability of the plane to fly.

Assignment Outcomes

Analyze network design systems

Evaluate operations analysis and performance assessment, risk and sustainability to SCM

Incorporate emerging relevant technologies applicable to the Business environment.

Table of Contents

1) Logistics Operational Consideration for Operating Globally 3

2) Strategies to overcome transportation infrastructure congestion 3

3) Logistics and SCM Management Evolution and Challenges 4

4) Distribution Networks 4

Performance Analyzing and Risk Management 5

Modern Technology 5

Reference List 7

1) Logistics Operational Consideration for Operating Globally

The logistics department has to consider the various things before and after the supply of materials and goods to the consumers. Proper packaging and managing of the goods and products are required before being supplied. Likewise, the logistics considerations play a vital role in the strategy planning. To operate in the global environment of business, logistics management has to be properly done. It has to take into considerations about the location in relation to the raw materials and the markets where the final products will be delivered (Christopher, 2016).

It also considers the transportation aspect and how to reduce the cost of transportation of these products and goods. In the case of the manufacturers of a certain product or material, the logistics concern itself with the outsourcing of the raw materials, warehousing selection and the location of the marketplace and the quality of the customer services provided. The logistic considerations play a big role in deciding the nature of the business. The considerations help in better functioning of the goods and services that are provided and also improve the management of the supply chain (Brandenburg et al. 2014).

2) Strategies to overcome transportation infrastructure congestion

The strategies that need to be appointed in overcoming the various obstacles faced by companies in the transportation infrastructure are as follows.

One of the important strategies that can be followed by the firms for resolving the congestion in the transportation infrastructure is consolidating the shipments. This means that the shipments that are used to deliver the goods and products from one place to another will be fully loaded (Gilmour, 2013). Larger shipments are not always possible for firms, but when it is possible, the ships should be loaded with goods as much as possible.

Avoiding congested roads and places, where there is a high chance of encountering heavy traffic, is an essential strategy in solving the congestion problem in the transportation infrastructure (Stevens & Johnson, 2016). Avoiding these roads and places will lead to a free flow of transportation techniques and also free flow of goods from the source of origin to the source of consumption.

Planning of the routes should be done for the delivery of the goods and products. Planning of routes from beforehand will ensure the free flow of the goods and products. The planning ensures the path and also ensures a reduction in the cost of transportation (Christopher, 2016). This brings efficiency into the mix and also helps in the conduction of business in a proper manner.

3) Logistics and SCM Management Evolution and Challenges

The logistics and the supply chain management evolve from different stages. A firm adopts global strategy when it supplies the goods and products to different countries and places. The globalization evolution takes place through the Enterprise Resource Planning where the system adopts various new ways to evolve from one stage to a completely different one (Gilmour, 2013).

The next stage of evolution begins from the global business environment to the transnational stage. This staged involves the firm to think in a globalize manner but with paying attention to the various kinds of regional and local markets. The globalization of the brand will ensure the validation of the local markets, and they will be provided with valued products and services. The global vision in the transnational strategy will be introduced through the ERP system, and it will be concentrating on the supply chain management extensively (Brandenburg et al. 2014).

The challenges that are mostly faced by the firms in the evolution from one stage to the other can be from within and outside of the organization structure. It can involve challenges like outsourcing of the raw materials and provide sufficient warehousing place for the storage. The organization of the system within the firm is an important aspect of the evolution. Organizing the strategies after the firm’s decision of evolving from one phase to another is a difficult challenge for a lot of companies (Fernie & Sparks, 2014).

4) Distribution Networks

The inventory carrying the cost of the electronic products are high as they are small and sensitive. Their value is much more and needs special packaging for distribution. The lightweight devices need to be packaged well which increases their packaging expenses. The transportation expenses will be relatively low. The distributing network that the firm should use in this case will probably by air.

Canned foods have low value, and their packaging cost is lower. Their transportation cost will also be higher because the mode of transport has to be fast and hence it can only be transported through railway or airplanes. The food might need a specific temperature for storage; hence the transportation needs to be equipped with a proper system (Bosona & Gebresenbet, 2013).

Medical products need to be transported within a given period. The means of transport here will be costlier as it needs to fast hence a proper airway delivery has to be made. In emergency cases, the medicine products have to be delivered by planes.

Aircraft spare parts are high in value and hence require proper and detailed packaging. The packaging and storing are important so that the parts of the plane are not damaged. The delivery can be through the shipment as the spare parts require space. Delivery through shipments will also ensure the product value as it will be delivered properly in a big capacity.

Performance Analyzing and Risk Management

Organizations and firms all over the world have developed a strategy to analyze the various aspects of logistics. These strategies help in accurately conducting the business and also help in the supply chain management. The management of the goods and services are improved through the implementation of the SCM logistics and also satisfies the customer demands.

The risk management in the implementation of SCM logistics pertains to the various ways the risks in the supply of goods and services can be minimized (Stadtler, 2015). The risk management reduces the cost of managing the products and services. The competitiveness in the market makes it more difficult to manage the risk as the companies try out newer strategies to be on the top.

Modern Technology

Modern technology like using the internet and the various other ways of connecting with people can be helpful in the integration of the supply chain logistics (Rushton, Croucher & Baker, 2014). Communication can be done with stakeholders of the company, and the customers can be done through the internet for better results and performance. Using devices for keeping records of the company and the supply management is also crucial. Current Technologies can keep millions of data and store them for future references for the company.

Reference List

Books

Christopher, M. (2016). Logistics & supply chain management. Pearson UK.

Fernie, J., & Sparks, L. (2014). Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan Page Publishers.

Journals

Bosona, T., & Gebresenbet, G. (2013). Food traceability as an integral part of logistics management in food and agricultural supply chain. Food control, 33(1), 32-48.

Brandenburg, M., Govindan, K., Sarkis, J., & Seuring, S. (2014). Quantitative models for sustainable supply chain management: Developments and directions. European Journal of Operational Research, 233(2), 299-312.

Gilmour, P. (2013). Benchmarking supply chain operations. International Journal of Physical Distribution & Logistics Management.

Rushton, A., Croucher, P., & Baker, P. (2014). The handbook of logistics and distribution management: Understanding the supply chain. Kogan Page Publishers.

Stadtler, H. (2015). Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.

Stevens, G. C., & Johnson, M. (2016). Integrating the Supply Chain… 25 years on. International Journal of Physical Distribution & Logistics Management, 46(1), 19-42.