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Principles of Logistics Management Samples †MyAssignmenthelp.com

Question: Discuss about the Principles of Logistics Management. Answer: Introduction Background and Purpose of the Report The purpose of the report is to analyze the current operations of a manufacturing company in terms of linking the same with logistics functions. It focuses on analyzing the interfaces between logistics functions with the production, marketing and accounts and finance activities of the manufacturing firm. Further, effective analysis and recommendations are taken to be rendered associated with the order cycle and the inventory management functions of the manufacturing organization. Both empirical and case study related research is taken to be undertaken for understanding and evaluating the effectiveness and potential of the logistics functions of the manufacturing firm with order cycle and inventory management activities conducted by it. The report would thus help in reflecting on the practical effectiveness of the theoretical directions concerning logistics management activities regarding manufacturing organizations. Overview of DyStar Group DyStar Group established during 1995 in terms of a joint venture between two companies Hoechst AG and Bayer Textile Dyes operates as a market leader in manufacturing dyestuff and chemicals and also in generation of coloring solutions. DyStar Group serves its customers through the generation of different types of colorants, effective chemicals and also other types of services. A timeline of DyStar Group is reflected as follows. DyStar Group renders innovative services and solutions to the textile industry while also providing services to other sectors like paints, packaging industry, coatings and also paper products. It also serves other sectors like food and beverage and also personal care through the generation of different types of chemical solutions and products. The service divisions of DyStar Group essentially focus on providing assistance to different types of brands, retail institutions and also other types of industry partners in terms of operating through effective supply chains that helps both in reducing lead times and also the supply chain and distribution costs. Moreover, DyStar also works based on the basis of an econfidence program that generates assurance regarding the meeting of legal compliances of its chemical products and solutions(DyStar Singapore Pte Ltd, 2017). The Interfaces: Interface between Logistics and Production An effective interface between logistics and production is associated to the duration required for meeting of the production operations. Operational efficiency is determined in terms of existence of long range production runs with infrequent amount of changeovers. However, production operations carried out for longer durations tend to result in some finished products while also limits the supplies of other types of merchandises(Rushton, Croucher, Baker, 2017). Production managers are thus required to evaluate the benefits and challenges associated to both long and short term production activities and the impact of such on the inventory position of the firm. Manufacturing or production firms are observed to focus on the development of short-term production functions and essentially focus on reducing the cost and time associated to shifting of production activities from one product line to another(Coyle, Langley, Novack, Gibson, 2012). Optimization of logistics in DyStar contributes in reducing the amount of space required for transportation of cargo from one region to another. The same helps in reducing wastage of cargo space while also generate fuel efficiency and reduction of transportation costs. Production sites are planned in areas with proximity to potential customer bases. The optimization of the logistics space enabled by trucks contributes in generating needed efficiency. Development of satellite warehouses at different regions and provision of consignment stocks to potential buyers are identified as two activities for enhancing productivity of land transportation systems. For long distances, DyStar focuses on sea freight logistic systems compared to air freight owing to increased cost of the latter(DyStar Group , 2016). Interface between Logistics and Marketing The logistics function of an organization bears effective relation with the marketing activities of the firm in that the outbound systems or development of distribution networks plays a key aspect in selling of a product. The interface between marketing and logistics function can be further studied based on the incorporation of 4Ps like product, price, place and promotional elements of the marketing mix. Regarding product, the logistics department is concerned with the different dimensions like size, shape, volume and weight of the product in that effective packaging is required to be provided thereof. Knowledge about the above dimensions also helps in generation of effective storage of such products and also in estimating use of logistics space(Christopher Peck, 2012). In terms of pricing delivery of large quantities of products enables the shipper to save costs regarding logistics operation. Saving on logistics costs thus helps the marketer or producer to render discounts and rebates to the ultimate customer. The place parameter focuses on evaluating the type of distribution network favored by the firm. Distribution networks that are wholesale bounded are observed to reflect reduced amount of logistics compared to that of retailers needing frequent use of logistics(Min, 2015). Relating to promotional aspects it is the duty of the marketer generating promotions or sales to rightly collaborate with the logistics team for generation of the right amount of products ordered by the customers within the stipulated period. In DyStar land based distribution functions are aptly catered based on truck based transports such that the same helps in reaching merchandises to customers in a cost effective fashion. For long distances, logistics system enabled based on sea transport are favored compared to air transport systems for reducing costs(DyStar Group , 2016). Interface between Logistics and Accounts and Finance Apart from production and marketing, logistics also bears an effective relation with the accounts and finance department of a business institution. Logistics functions tend to potentially affect the Return on Assets (ROA) or the Return on Investments (ROI) of a firm. Accumulation of unused inventory levels negatively affects the ROA of the company and vice-versa. Again, increase in the level of costs regarding transportation and warehousing also tend to affect the ROI levels of the organization. Similarly, the accounts and finance department also focus on evaluating the amount of returns gained based on the investments rendered regarding development of logistics functions(Kasilingam, 2012). In DyStar the management focuses on generation of full loads of transport such that the same helps in optimization of space and thereby in reducing costs associated with fuel and logistics space(DyStar Group , 2016). Order Cycle The order cycle of DyStar reflects that the offers rendered by the seller are not binding based on different parameters like price of the merchandises, quantity to be delivered, time at which the delivery is required to be carried out and finally the availability of the product. On the contrary, the offer put forward by the buyer requires to be implemented by the seller in that it stands binding on the latter owing to the buyers acceptance of the invoice generated by the seller. The seller is thereby required to put into effect the delivery as quickly as possible. The seller is thereby not required to fix different times of delivery. However, in cases where an agreement regarding time of delivery is agreed between the buyer and seller, the latter is required to incorporate the actions of the suppliers for delivering the right amount and pattern of products to the buyers. The delivery is required to be carried out in a punctual fashion such that the delivery date is ascertained as the specific date at which the merchandises have reached the buyers. The seller has the right for selecting both the route and also the transport mode for delivering the products to the customer. The cost required to be incurred for meeting of special delivery is required to be borne by the buyer on account of the demand made by the latter(DyStar , 2014). The order processing system of a manufacturing firm is reflected as follows. In terms of packaging, DyStar focuses on the generation of recycled and reused packaging such that the same can be used in a repetitive fashion along future periods(DyStar , 2012). The responsiveness of the Order Processing System of DyStar can be effectively enhanced through the incorporation of information technology. The IT enabled order processing system contributes in effective tracking of the merchandises location, movement of the merchandise along different locations and also the credit standing of the customer. The computer instantly contributes in the generation of the shipment order, bills for the customers, updating inventory records, helps in replenishment of stocks and also intimates the sales representative regarding the actual situation of the order. Incorporation of Information Technology ideally contributes in speeding up the order processing system and also enhances the effectiveness of the system leading to reduction of discrepancies(Venkataraman Pinto, 2017). Inventory Management DyStar operating as a manufacturing company in the ambit of chemical industry is required to handle large amounts of inventory for meeting the diverse needs of its customers and other stakeholder groups. The firm focuses on optimizing on its inventory volumes for enhancing the revenue and return generation capacity on the investments made concerning the carrying out of the production functions. DyStar depending on the production and delivery of products that are affected by price volatility is observed to suffer from the unpredictable nature of the inventory amounts. Standardization of the inventory levels for DyStar stands as a prerequisite in cases where the company is required to focus on the development of stock keeping function for meeting of key needs of local and regional markets. Further, effective inventory volumes are required to be rightly planned for meeting of contingencies such that the same is integrated with logistics, sales and procurement activities. Planning of eff ective inventory volumes rightly help in managing shutdowns of supplier units and also changes in consumer demands(Kirschstein, 2015). DyStar can effectively focus on working based on real time inventory tracking mechanisms such that it needs to incorporate agile breakthroughs based on the incorporation of Radio Frequency Identification or RFID Bar Codes for its products and also Point-of-Sales scanners across sales outlets, warehouses and supplier stations. The incorporation of POS Scanners would help in ideally tracking the movement of merchandises along the different centres such that the same would help in enhancing the effectiveness of inventory tracking while also in evaluating the changes in consumer behavior and demands. Data collected through the use of POS Scanners is transmitted over the ERP Software for helping the different stakeholders gain effective access to such data for inventory/stock planning and management purposes. Effective stocking of needed inventory can be planned through the synchronization of logistics and transportation mechanisms for reaching of stocks to the manufacturing units on time for meeting the objectives of Just-in-Time (JIT) mechanism (Stern, 2017). Conclusion The report effectively analyses the different interfaces that were generated between the logistics functions carried out by DyStar, a dye and product manufacturing company with its production, marketing and finance and accounts functions. The case study of DyStar is analyzed based on the incorporation of empirical research associated to the study of books, reports and other potential literature. Further, the current order processing and inventory management system of DyStar is also analyzed in the report based on the incorporation of theoretical inputs. The current order cycle of DyStar is recommended to be enhanced through the incorporation of Information Technology tools while the inventory management systems of the company are taken to be enhanced based on the generation of needed agility. References Christopher, M., Peck, H. (2012). Marketing Logistics. New York : Routledge . Coyle, J. J., Langley, C. J., Novack, R. A., Gibson, B. (2012). Supply Chain Management: A Logistics Perspective. United States : Cengage Learning. DyStar . (2014). General Conditions of Sale and Delivery. Retrieved October 1, 2017, from https://www.dystar.com/wp-content/uploads/2015/06/GeneralConditionsofSale.pdf DyStar . (2012). Sustainability Report . Singapore: DyStar. DyStar Group . (2016). Sustainability Performance Report. Singapore : DyStar Group . DyStar Singapore Pte Ltd. (2017). About DyStar Group. Retrieved September 30, 2017, from https://www.dystar.com/about-dystar-group/ Kasilingam, R. G. (2012). Logistics and Transportation: Design and planning. United Kingdom : Springer. Kirschstein, T. (2015). Integrated Supply Chain Planning in Chemical Industry: Potentials of Simulation in Network Planning. United Kingdom : Springer. Kuljanic, E. (2014). AMST'99 - Advanced Manufacturing Systems and Technology: Proceedings of the Fifth International Conference. United Kingdom : Springer. Min, H. (2015). The Essentials of Supply Chain Management: New Business Concepts and Applications. United States : FT Press. Rushton, A., Croucher, P., Baker, P. (2017). The Handbook of Logistics and Distribution Management: Understanding the Supply Chain. United States : Kogan Page Publishers. Stern, T. V. (2017). Lean and Agile Project Management: How to Make Any Project Better, Faster, and More Cost Effective. United Kingdom : CRC PrEss. Venkataraman, R. R., Pinto, J. K. (2017). Operations Management: Managing Global Supply Chains. United Kingdom : SAGE.

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