Discussion responses

Brian A logistics network is the backbone of any corporation dealing in the production, distribution, or sale of a product. According to our textbook, a logistics network “consists of suppliers, manufacturing centers, warehouses, distribution centers, and retail outlets, as well as raw materials, work-in-process inventory, and finished products that flow between the facilities” (Simchi-Levi, Kaminsky & Simchi-Levi, 2008, p. 1). The configuration of this logistics network is the art and science of supply chain management. When logisticians configure the network, they focus on the elements which have an impact on cost with the obvious goal of reducing or eliminating cost.

At this stage, logistics leaders can begin to apply principles of advanced supply chain management. The framework leaders build during the logistics network establishment is foundational to an organization’s success or failure. Stadtler (2005) explains that a strategic, or whole of system approach, must be adopted by leaders when configuring the logistics network. Sometimes reducing cost in one leg of the supply chain may result accruing an even greater expense in another branch of the network. Good communication, strong leadership, and a whole of system approach enable companies to integrate advanced supply chain management principles into the configuration of a logistics network.

References:

Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and managing the supply chain. Boston: McGraw-Hill/Irwin.

Stadtler, H. (2005). Supply chain management and advanced planning––basics, overview and challenges. European Journal Of Operational Research, 163(3), 575-588. http://dx.doi.org/10.1016/j.ejor.2004.03.001

Kristopher

A logistical network configuration consists of multiple elements that are configured together that emphasize on systems approach collectively to enable effective supply chain management. A typical logistical network consists of raw materials, manufacturing centers, warehouses, distribution centers, retail outlets, suppliers, and finished products that connect the facilities together. Since there are many attributes being considered in the logistics network, this creates many different and often complicated procedures to maintain the effectiveness of the connections. These complications should consider optimal number and location of suppliers, the most effective transportation nodes, maintenance and preventative maintenance needs, customer demand considerations in distance or rate of localized delivery efforts, and how distribution centers and raw resource providers all contribute to the different connections of this logistic network.

This is important to Advanced Supply Chain Management (ASCM) since we are not just considering the transportation means of what is often confused as the sole piece in a supply chain. The numerous complications need often relooking and evaluations to ensure they are effectively providing the most robust results in the supply chain. These evaluations can adapt to changing technology, processes, material usage, shipping configurations, reverse logistics, and even the locations of distribution centers. This is where the challenge is in ASCM since the often become overlooked as business becomes more routine and are producing profits. This is when leadership can reach to fresh minds that have other broadening experiences that can be focused and developed into the supply chain that flatten the gap between the different nodes. Personal experiences and different working cultures can also provide different insight into adapting and changing procedures that can benefit more than just one node in the network. This is when ASCM becomes intriguing and beneficial to many types of businesses.

Sources:

Simchi-Levi, D., Kalminski, P., Simchi-Levi, E., (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies