The paper "Key Concepts in Logistics Management " is a great example of management coursework. Globalization and nationalization in contemporary society have led to the demand for logistics management in many industries in developed countries. Logistics is the process of planning, implementing, controlling effective and efficient forward and reverse flow of products and also the storage of services and goods in relation to point of origin or point of consumption in the intention of meeting customers’ requirements. The diagram below shows how business logistics operate in a company. Raw materials are collected by initial suppliers (for example metal industries).
According to Tseng, Yue and Taylor (2005), inbound logistics envelops the movement of raw material after its reception from suppliers. They further explain that material management is when raw materials and components are taken to the factory for processing (for example an auto manufacturing industry). Physical distribution is when parts of the products which are finished goods are transported to distributors who can assemble the goods and then transport them to retailers who will sell the products to customers. Supply Chain Management (SCM) is larger than logistics because it links logistics directly with a consumer’ s communications network and also the factory’ s engineering staff (Taniguchi, Thompson & Yamada, 2003). Logistics helps in improving customer service, acquiring capital, materials, technology, necessary data and human resource in meeting wants and needs of customers.
Logistics can be described as customer-oriented operation management. Company’ s Problem The company lacks a reverse logistics system which would help in two major areas: environmental protection and globalization of markets. My company wants to build a reverse logistics system which will also help in improving customer service because goods returned will be improved in quality.
The company will be at a competitive advantage of reducing the costs of production. A reverse logistics system will require intense professional knowledge in procurement and logistics management. Procurement refers to bringing raw materials, supplies and component parts from other organizations to support the operations of a company. The following are objectives of having a procurement program in the company: managing supply base, create lasting relations with other organizations and support operational requirements. Reverse Logistics Reverse logistics is the process where the flow of material, finished goods, related information and in-process inventory is planned, implemented and controlled from the customer (point of consumption) to the producer (point of origin) so as to recapture value and ensure proper disposal of goods.
The importance of logistics activities to the reverse logistics operation is to improve customer service and demand forecast. In reverse logistics; defective components and finished products are returned to producers, a process which is part of quality control. The process of reverse logistics is being developed in many companies worldwide to increase industries’ competitiveness and recycling reusable material.
The diagram below shows a structure of the logistics system used in my company which includes forward, information flow and how backwards or reverse logistics will fit in the company’ s operations. The diagram above has black arrows which represent the direction of backwards or reverse logistics. This flow is counter to forward logistics which is represented by hollow arrows. The product which is defective or waste product is transported from consumer to the retailer because it was bought in a store or supermarket. The retailer will return the product to the wholesaler who will transport it to the manufacturer and then to the supplier.
The flow of information intertwines between different stakeholders within the system.
Bienstock, C, (2009). Designing a Reverse Logistics Operation for Short Cycle
Time Repair Services. Journal of Management & Marketing, pp.1-34.
Cooper, M.C., Lambert, D.M. & Pagh, J.D. (1997) Supply chain management: more than a
new name for logistics, International Journal of Logistics Management, Vol. 8, No. 1,
Fleischmann, M, Jacqueline, M, Ruwaard, R, Laan, E, & Wassenhove, L. (1997). Quantitative
models for reverse logistics: European Journal of Operational Research 103, pp. 1-17.
Krumwiede, D.W. & Sheu, C. (2002) A model for reverse logistics entry by third-party
providers, Science Direct, Vol. 30, 325-333.
Tseng, Y, Yue, W, & Taylor, M. (2005). Proceedings of the Eastern Asia Society for
Transportation Studies. The role of transportation in logistics chain, pp. 2-16.
Taniguchi, E., Thompson, R.G. & Yamada, T. (2001) Recent advances in modelling City
Logistics. In E. Taniguchi and R.G. Thompson (eds.), City Logistics II. Institute of
Systems Science Research, Japan, 3-33.
Taniguchi, E., Thompson, R.G. & Yamada, T. (2003) Visions for city logistics.
Proceedings 3rd International Conference on City Logistics, Institute for City
Thompson, R.G. & Taniguchi, E. (2001) City logistics and freight transport. In A.M.
Brewer, K.J. Button and D.A. Hensher (eds.), Handbook of Logistics and Supply
Chain Management. Elsevier Science Ltd., UK, 393-405.