Thematic Analysis Of Logistics Chain Management In Supply Chain

Purpose

The purpose of the paper is to study the increasing importance of the logistics chain management. The distribution or the logistics chain refers to the network of distributors, which result in distribution of finished products in the market. The companies today maintain worldwide supply chains and logistics chains to meet their varied requirements of products.

Figure 1. A simple moderated mediation framework showing simplified logistics chain management

(Source: Author)

The simple moderated mediation framework above shows a simplified diagram of a supply chain model. The figure starts with suppliers of raw materials, which provide the company or the manufacturer with the raw materials. According to Monczka et al.(2015) supply chain management of the manufacturing companies depend on the type of finished goods they manufacture. According to Hoejmose, Roehrich and Grosvold (2014) multinational companies maintain global supply management chains to supply them with raw materials and ensure uninterrupted production of finished goods.

The next step is the production of finished goods using modern technology. Agus and Ahmad (2017) reiterate that advancement of information technology and advent of advanced production plants allow the companies to carry on uninterrupted production of finished. Seuring (2013) reiterates that supply chains strategies form the base of production strategies companies. The supply chain management is the upstream activity, which leads to production of finished. The last step is the downstream activity, which leads to the companies distributing their finished using their distribution and logistics chains. This leads to the products reach the final consumers and that completes the supply chain management.

The research shows that integration of upstream and downstream logistics chain integrated using information technology is very significant to the companies today. They are very significant to the core operations of these companies because the steady supply of raw materials ensure smooth production of goods and services in the business organisations. For example, the supply of milk, cocoa powder and other dairy products are important raw materials for the dairy companies. The supply of plastic cards and chips ensure steady supply of sim cards and telecommunication services in the telecommunication companies. The smooth flows of supply of raw materials ensure that the companies are able to keep their cost of production low and enhance their profit margins. Similarly, intricate network of logistics chains enable multinational companies to sell their products globally generation massive revenue. The following are the factors affecting supply chain management and logistics chain management of different companies:

Govindan et al. (2014) point out that there are various environmental factors like business environment, change of customer preferences, change of technology and competitors which impact logistics chains. For example, changes in customer preferences make the suppliers introduce new products, which in turn make them acquire new logistics chains to acquire raw materials and logistics chains to sell their products. The multinational companies obtain their raw materials from abroad owing to the diverse range of their products. Seuring (2013) points out further that in case of overseas procurement, bilateral relationship between nations play a very important role. It is easier to procure materials from nations having stronger political relationships. This analysis shows that environmental factors have profound impact on the logistics chain management in the companies.

Design/methodology/approach

Information technology has a very profound impact on logistics chain management. Stadtler (2015) point out that companies today acquire materials from all across the world and require to collaborate with global supply chain networks. Information technology helps these companies to communicate and partner with this globally distributed supply chains. Similarly, companies use advanced technology to collaborate with overseas distributors and retail chains to sell their products. Ecommerce has strengthened the logistics chains and help companies to advertise and sell their products before a large number of consumers. According to Brandenburg et al. (2014), the modern supply portals allow companies to view materials, their attributes, supply conditions and rates according to their requirements. It also allows the companies to place orders, manage their ordering time and stock of raw materials. Thus, information technology determines supply chain management because advancement in IT results in integration and expansion of supply chain management all over the world.

Agus and Ahmad (2017) state that, logistics chain management plays very significant roles like, ensuring continuous production, which in turn results in customer satisfaction. The following section would point the practical implications of logistics chain management to companies:

Yinan, Tang and Zhang (2014) point out that, companies maintain and manage extensive upstream logistics chains to acquire high quality raw materials at economies of scale. This helps them to ensure continuous production and maintain their low cost of production. Chopra and Sodhi (2014) point out that extensive logistics chain management enable the companies to acquire high quality raw materials on continuous basis. Extensive logistics supply chains enable companies to nullify the shortage of raw materials in one market buy obtaining it from another market. This helps them to bridge disruptions in production, which once again contribute towards high productivity. A globally spread network enable companies to sell their products all over the world and earn huge revenue. Thus, supply chain management ensures continuous productivity whereas a global logistics chain ensures sell of products globally to earn huge profits.

Christopher (2016) points out that the market environmental today is experiencing several risk factors like downturn, shortage of raw materials, changes in the tastes of consumers and advent of new technology. These incidents have profound impacts on the productivity of the manufacturing companies and require them to maintain and manage global supply chains. Wisner, Tan and Leong (2014) points out that the governments, customers and the communities at large today require business organisations to operate sustainably. The management bodies of these organisations seek to gain sustainability to reducing costs and produce environment friendly products. Global logistics chain management allows companies to choose from a large number of suppliers and obtain raw materials from the suppliers producing environment friendly raw materials. It allows the companies to maintain their high standards of raw materials and prevent them from being exploited by the suppliers. This analysis shows that logistics chain management enables the business organisations diversify their risks of material shortages, exploitation by suppliers and achieve sustainability.

Monczka et al.(2015) points out that raw materials of the manufacturing companies include inflammable substances like petrol, diesel and benzene. The lubricants used for the machines and other harmful substances can lead to accidents leading to employee injuries or even death. These logistics chains of the manufacturing companies of all the big industries like automobile, construction, telecommunication and FMCG are subject to workplace risks. Scheibe and Blackhurst (2017) points out that the accidents are capable of stalling partial or total production process. One can also point out that workers involved in the warehouses of the logistics companies are also prone to accidents due to bulky finished products. Accidents of employees involved in acquiring and handling raw materials and work-in-progress materials have attracted huge penal charges for companies. Thus, the companies today manage their supply chain and distribution chains strategically to avoid accidents to the extent possible.

No.	Key Themes	Description of Key Elements	Dominant concepts	References
1.	Logistics Chain Integration	1. Companies integrate upstream and downstream integration. 2.Upstream-partnering with the suppliers to acquire high quality raw materials 3.Downstream-partnering with distributors to make products reach final customers.	Exchange of information Sustainability	Seuring (2013) Govindan, et al., (2014) Scheibe,and Blackhurst (2017)
2	Information Technology	1.Information technology help companies to integrate and manage their supply chains 2.It also help companies to manage their logistics chain management.	Information technology, Supply chain	Stadtler (2015) Brandenburg et al. (2014)
3	Environment	1.The environmental factors like political factors like government policies and level of technological environment impact supply chains. 2. Change of customer preferences, advent of ecommerce and development of logistics hubs have great driving impact on logistics chains.	Politics, Government policies	Govindan et al. (2014) Agus and Ahmad (2017)
4	Continuous production and economies of scale	1.Supply chain management helps companies acquire raw materials at best prices and ensure continuous production. It helps them achieve economies of scale 2. Logistics chain management helps the companies to sell their products globally.	Lower production, continuous production, economies of scale	Yinan, Tang and Zhang (2014) Christopher (2016)
5	Risk distribution and sustainability	1.Multinational companies today acquire multiple supply chain management to acquire goods from them. This ends domination of a small number of suppliers and allows the companies choose from among the ones supply raw materials at the best rates. The supply chain management also help obtain sustainable products and achieve sustainability. 2. Distribution chain helps companies to distribute their goods using the services of the economic distributors. This helps them to make their products available to the customers at low prices and earn huge profits.	Sustainability, multiple supply chain models	Christopher (2016) Mithas, Krishnan, and Fornell, (2013) Hoejmose, Roehrich, and Grosvold (2014)
6	Supply chain management and logistics chain management and workplace risk	1. Supply chains are prone o great hazards due to requirements of storing hazardous chemicals like petrol. 2. Warehouses of logistics companies are also prone to accidents and hazards to workers due to bulky finished goods like bulky electronic goods.	Hazards	Monczka et al.(2015) Scheibe and Blackhurst, 2017
7	Risk diversification	1. Supply chains diversify risks of shortage of raw materials 2. Distribution chains diversify risks of shortage of demand in one particular market.	Demand, supply	Monczka et al.(2015), Yinan, Tang and Zhang (2014)
8	Smooth productivity	1. Logistics management enables smooth transport of raw materials from suppliers to the company. 2. It ensures smooth production.	Production, transport	Hoejmose, Roehrich, and Grosvold(2014)
9	Customer satisfaction	1. Smooth transport of raw materials by logistics chains results in smooth production .2. This ensures customer satisfaction	Customer satisfaction	Scheibe and Blackhurst(2017)
10	High revenue	1. Customer satisfaction results in earning high revenue. 2. This helps company to gain competitive advantage. 3. The company earns higher market position.	Competitive advantage and higher market position.	Hörisch, , Freeman and Schaltegger(2014)
11	Open innovation	1. Logistics chains supply raw materials smoothly. 2. This encourages companies to share their resources to carry out open innovation. 3. Open innovation results in more innovative goods	Innovation, innovative goods	Mithas, Krishnan and Fornell(2013)
12	Sustainability	1. Logistics chains enables companies to acquire products from local and international suppliers. 2. This helps the local suppliers earn revenue by selling goods to the companies 3. Encourages economic development	Economic development, community welfare	Christopher (2016)
13	Niche marketing	1. More specialised logistics chains enables companies to gain more specific raw materials. 2. Encourages them to carry out niche marketing. 3. cater to more specific needs of the customers	Niche marketing	Monczka et al.(2014)
14	New products	1. Innovations between companies result in new products. 2. This helps companies to cater to new customer base. 3. More profit generation.	New products, new customer base	Chopra and Sodhi(2014)
15	Entrepreneurial ventures	1. Logistics chains encourage new entrepreneurial ventures. 2. Economic development of economies ‘ 3.Sustainaility	Entrepreneurial ventures, economic development	Yinan, Tang and Zhang(2014).

Companies today maintain both supply chains and distribution chains, which spread across the world. The advancement of information technology has helped the companies to partner with suppliers of raw materials and logistics chains from all over the globe. This integration of several supply chains helps the companies to receive uninterrupted supply of raw materials and ensure seamless production. The logistics chains spread all over the world help the companies to sell their finished goods. This helps them to diversify economic downturns and reduction of demand in one market and sell their products in other markets. This allows the companies to earn continuous profits and diversify their risks and losses.

Conclusion:

Supply chain management are of immense importance to the manufacturing companies because they uninterrupted production of finished goods. The supply chains of companies are dependent on various factors like category of finished goods and technological advancements. The companies should maintain sustainable supply chains to ensure environment friendly modes of production and employee safety.  

References:

Agus, A. and Ahmad, S., 2017. The Significant Impact of Customer Relations Practices (CRP), Information Technology (IT) and Information Sharing between Supply Chain Partners (IS) on Product Sales. Gading Journal for the Social Sciences, 12(01), pp.65-85.

Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., 2014. Quantitative models for sustainable supply chain management: Developments and directions. European Journal of Operational Research, 233(2), pp.299-312.

Chopra, S. and Sodhi, M.S., 2014. Reducing the risk of supply chain disruptions. MIT Sloan Management Review, 55(3), p.73.

Christopher, M., 2016. Logistics & supply chain management. Pearson UK.

Govindan, K., Azevedo, S.G., Carvalho, H. and Cruz-Machado, V., 2014. Impact of supply chain management practices on sustainability. Journal of Cleaner Production, 85, pp.212-225.

Hoejmose, S.U., Roehrich, J.K. and Grosvold, J., 2014. Is doing more doing better? The relationship between responsible supply chain management and corporate reputation. Industrial Marketing Management, 43(1), pp.77-90.

Hörisch, J., Freeman, R.E. and Schaltegger, S., 2014. Applying stakeholder theory in sustainability management: Links, similarities, dissimilarities, and a conceptual framework. Organization & Environment, 27(4), pp.328-346.

Mithas, S., Krishnan, M.S. and Fornell, C., 2013, May. Why do customer relationship management applications affect customer satisfaction?. American Marketing Association.

Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. Cengage Learning.

Scheibe, K.P. and Blackhurst, J., 2017. Supply chain disruption propagation: a systemic risk and normal accident theory perspective. International Journal of Production Research, pp.1-17.

Seuring, S., 2013. A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), pp.1513-1520.

Stadtler, H., 2015. Supply chain management: An overview. In Supply chain management and advanced planning (pp. 3-28). Springer Berlin Heidelberg.

Wisner, J.D., Tan, K.C. and Leong, G.K., 2014. Principles of supply chain management: A balanced approach. Cengage Learning.

Yao, M. and Minner, S., 2017. Review of multi-supplier inventory models in supply chain management: An update.

Yinan, Q., Tang, M. and Zhang, M., 2014. Mass customization in flat organization: The mediating role of supply chain planning and corporation coordination. Journal of Applied Research and Technology, 12(2), pp.171-181.