Seminarski i Diplomski Rad


Logistics management is concerned with the effective movement of goods from point of production to point of consumption and managing the associated services. Two aspects of such movement are noteworthy when non-bulk goods are moved over long distances: first, goods are generally containerised, and this is especially true for higher value goods. Second, the movement of goods in such cases usually involves more than one major mode of transport.

Economic drivers

Economic hardship produced intense pressure to reduce costs across supply chains. Unpredictable demand for goods and services, increased customer demands, and volatile commodity .
Stainable supply chain management practice. The changes we are dealing with today are not for a season. Some argue that continual economic and social change is the “new normal. While the term “sustainable” has been used lately in the context of environmental and green issues, it also succinctly conveys the need to build and develop approaches and techniques for managing and operating the supply chain.
We have identified five drivers that constitute the core of sustainable practice in supply chain management. These drivers are optimization, synchronization, profitability, adaptability and velocity.

1.optimization: it is the alignment of global supply chain resources both tangible and intangible, owned or outsourced to facilitate the success of supply chain members.
2.synchronization: it is the ability to coordinate, organize and manage end-to-end supply chain flows — products, services, information and financials.
3.profitability: it is the result of creating value through supply chain activities. Asset performance, working capital and returns on investment for infrastructure, technology and people are some of the critical parts that create value in a global environment.
4.adaptability: it is the degree to which respective supply chain members can change practices, processes and/or structures of systems and networks in response to unexpected events, their effects or impacts.
5.velocity: it is the speed at which end-to-end flows occur in the supply chain. These five drivers of sustainable practice should be a priority. It is an exercise that will help determine if your supply chain can adapt and be successful in today’s “new normal” of continual economic and social change.

Scale and scope of economic drivers

One of the characteristics which distinguishes network industries is the presence of substantial economies of scale and scope. Economies of scale alone have more of an impact on market structure than on market in the case of a single-product natural monopoly, there will normally be a single producer. However, in certain circumstances sufficient substitution in consumption might exist between fixed and mobile end user network access. In this case, the existence of economies of scale in a single production process. Would not, itself, be determinative of market structure.

Supply chain

A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer.

Supply chain modelling

There are a variety of supply chain models, which address both the upstream and downstream sides. The supply chain operations reference model, developed by the supply chain council, measures total supply chain performance. It is a process reference model for supply-chain management, spanning from the supplier's supplier to the customer's customer. It includes delivery and order fulfillment performance, production flexibility, warranty and returns processing costs, inventory and asset turns, and other factors in evaluating the overall effective performance of a supply chain.

The global supply chain forum introduced another supply chain model.while each process will interface with key customers and suppliers, the customer relationship management and supplier relationship management processes form the critical linkages in the supply chain.
The american productivity & quality center process classification framework sm is a high-level, industry-neutral enterprise process model that allows organizations to see their business processes from a cross-industry viewpoint.

Supply chain management

A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from industry to industry and firm to firm.
Supply chain management is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. The following are five basic components of supply chain manqgement.

1. Plan—this is the strategic portion of supply chain managment(scm). Companies need a strategy for managing all the resources that go toward meeting customer demand for their product or service.
2. Source—next, companies must choose suppliers to deliver the goods and services they need to create their product.
3. Make—this is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery. This is the most metric-intensive portion of the supply chain—one where companies are able to measure quality levels, production output and worker productivity.
4. Deliver—this is the part that many scm insiders refer to as logistics, where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
5. Return—this can be a problematic part of the supply chain for many companies. Supply chain planners have to create a responsive and flexible network for receiving defective and excess products back from their customers and supporting customers who have problems with delivered products..

Production flow chart
Production flow chart

Typical supply chain
Typical supply chain

Typical supply chain

The value of supply chain management

The value of supply chain management always starts with customers. They want shorter times to market for new products, lower stock, obsolescence and cash commitments and lower unit costs of purchasing and manufacturing. At the same time, and with no compromise, they want increasing variety and choice, wider distribution and increased customer and market responsiveness. The value of supply chain management is that it can provide a pathway to these seemingly contradictory goals. It can be descried as industrial alchemy.

The typical benefits of an excellent supply chain

1. Reduction in total logistics costs as a percentage of revenue (material acquisition, order management, inventory costs and finance/it support).
2. Reduction in order-fulfillment lead time.
3. Reduction in inventory.
4. Improvement in meeting commitment dates.

Supply chain decisions

There are four major decision areas in supply chain management:
1. Location,
2. Production,
3. Inventory, and
4. Transportation (distribution)

Advantage $ dis advantage of supply chain

Advantages– an integrated supply chain gives greater flexibility, ensures better control on the supply chain, thus making it relatively easy to implement process or product innovations, minimise the exposure to the risk of demand and price fluctuations, and facilitating faster decision-making and implementation process.
Disadvantages– inaccessibility of cheaper feedstock in market, and market dependence during the initial 3-4 years of feedstock maturation.

References :

Arntzen, b. C., brown, g. G., harrison, t. P., & trafton, l. L. (1995). Global supply chain management at digital
Equipment corporation. Interfaces, 25(1), 69-93.

Cohen, m. A., & agrawal, n. (1996). An empirical investigation of supplier management practices. In t. W. S.
Operations and information management department, university of pennsylvania (ed.) .







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