The paper “ Supply Chain Management - Strategy, Planning, and Operations” is an affecting example of the essay on management. Logistics is the management which harmonizes providing activities such as procurement, production, sales, and distribution with demands. It aims at promoting corporate competitiveness and enhances corporate value by achieving customer satisfaction, cutback of unprofitable inventory, and minimization of its transfer and minimization of supply costs. To realize the mentioned objectives, the collaboration of firms involved is necessary and the development of logistics using supply chains is required. Humanitarian relief is a major operation after a disaster for individuals who are isolated in areas affected by disasters and can not get basic supplies.
Since the demand can be very large, effective humanitarian relief logistics are very significant. The role of logistics in the humanitarian relief sector will be discussed in the two main areas: transportation management and procurement (Donald et al, 2005). Logistical activities play a significant role in transportation management and procurement in the humanitarian relief sector. The two activities enhance the utility of the services provided by the humanitarian relief agencies. The impact of logistics in the activities can best be described through the concept of economic utility.
The economic utility is the value or usefulness of a commodity in satisfying customer needs and requirements. The four types of utilities that aid in the satisfaction of customer needs include possession, form, time, and place. Logistics directly contributes to time and place utilities (Chopra & Meindl, 2001). Possession utility describes the value or usefulness that results from an end-user being able to have the possession of a product. Procurement directly affects possession since it is through procurement that possession is realized.
Transportation is also involved in enhancing possession utility since most of the products must be transported from the producer to the final user in order to guarantee possession. Possession utility can be affected by the payment terms associate with a commodity.
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