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Write a 3 pages paper on look the attachment. makes it an extremely challenging job (Lee 2002). Effective logistic planning greatly facilitates in providing the businesses with the effective roadmap t
Write a 3 pages paper on look the attachment. makes it an extremely challenging job (Lee 2002). Effective logistic planning greatly facilitates in providing the businesses with the effective roadmap to synchronize its network of operations to achieve the optimal performance outcome. Thus, various structures of successful logistics become vital ingredients of competitive advantage for the business. As a logistic manager for an international start up manufacturing company, I would prefer combined logistic operation over the other two structures, echelon and direct operational arrangement. Differences in the three operational structures Cooper et al. have broadly defined logistic as planning and management of information flow through the organization and facilitates network solution for supplier and customers at competitive cost. Information flow identifies and fulfils the requirement so as to expedite the operational efficiency of the various functional imperatives of the firm. Thus movement and control of raw material from the procurement to the manufacturing process and sale and distribution of final product to the customer, all require astute planning so that customer gets the desired product at the right time. Echelon structured operation relies on the uniformity of flow of information through the predefined and prearranged stages of pre and post production of raw material. The cost effective analysis of inventory helps to premeditate demand and supply of products, both of raw material and final products. Thus, delivery of product is fast through the warehouses where the inventory is strategically placed or stored. Direct structured logistics fundamentally caters directly to the customers from the factory outlet. The concept of warehouses and large inventory becomes redundant. Information technology is expediently used to process customer order and reduce element of failure vis-a-vis delay in delivery, malfunction etc. Combined structure is flexible in its arrangement of logistic details and adapts to the changes in the changing dynamics of global business. Fast moving products and products with short life are stored in forward warehouse and slow moving products, risky or costly products are often placed at central warehouse from where they are shipped as and when required. Rationale for Combined logistic operational structure For an international start up manufacturing company, speed and flexibility become hugely important. Porter (1985) firmly believes that logistics is vital ingredient of value chain that greatly facilitates business activities and helps the business to gain competitive edge. In the contemporary environment of global business, goods are highly sensitive to pricing and changes. Effective logistic arrangement increases operational efficiency within and outside the firm so that it is able to meet the challenges of the fast changing requirements of the customers. The use of Combined Logistic Arrangement is highly desirable because it helps to reduce the vast inventory which becomes redundant due to fast changing preferences of the customers. At the same time, it becomes cost effective and helps to meet the demands by customizing the products at short notice. Another very important aspect of combined logistic is that it effectively uses information technology to improve communication and enhance efficiency in the delivery of goods and services across the geographical boundaries.