Question:
Discuss about the Principles of Conducting Clogistics Management.
The report presents a brief overview of the logistics management. The Golden bridge food manufacturing company has been selected for the report. The report explains and analyzes the order cycle and inventory management. It describes the various theories of logistics management. It also explains the core functional areas of interface and its approaches. It also describes the economic order quantity. It is the well-known food company which is dealing in various food products. The company was founded in 1993 in Singapore. The company is manufacturing several western and eastern products under its own name in Singapore. The firm is dealing in stuffed fish, sausages, and seafood and hams products since 20 years. The company is obtained ISO 22000 and HACCP certification in Singapore. It is one of the biggest achievements for the firm. Through this certificate, the company is able to make a different image in the market. HACCP certificate and good quality of products are the unique strengths of the association.
Further, the company is producing the unique and good quality of products. The firm products differ from the competitor’s products in Singapore. It is serving its products in more than 9 countries across the world. The firm is producing innovative products in order to meet long-term success and growth in the market. It looks after the tastes, preferences, and expectations of the customers to meet the goals and objectives of the company. It provides the safe working environment to the employees. Further, the company maintains the hygiene standards and food safety in the market to attract the more customers across the world. It provides the career advancement opportunities to the employees. After various researches, it has been found that the company is overcoming on the competitors with its effective strategies and good quality of food. It prefers the demand and choices of the customers and provides healthy and hygiene food to them (Fernie & Sparks, 2014).
The interface is a term which is concerned with the technique that is helpful for Golden Bridge Foods Manufacturing Company. This Company set an Interaction among various related aspects, Department and the factor of Company. According to this report logistic management of the company is concerned with entire Activities which are discussed below (Bosona & Gebresenbet, 2013).
Thus, Interface is a technique which helps the company to communicate and interact with various issues of the company. According to this report, logistic management of an organization is a way to function in all departments of the company. It can relate to accounting, finance, marketing or even production. The entire interfaces play a vital role in logistics management. One can be the interface of any of the department of the company. The three core functional areas of logistics management have discussed below (Christopher, 2016).
The production department is responsible for checking and maintaining the productivity of the materials produced. The production is done in such a manner that it becomes easy to market. The smooth productivity helps the company to achieve its set goals and objectives. The cost and quantity are an important function of productivity. It is checked at the time of producing the units. The number of units at the time of production is checked by the managers and the cost of production is set accordingly (Seuring, 2013).
Production at Golden bridge foods manufacturing limited is done by analyzing that how the company follows production system. The company’s span of time becomes a major issue. If it turns out to be within short time period, the product is rejected. Therefore, the company has to make its step towards the process of production through proper planning. It becomes necessary for the company to change the cost of production at the time of production procedure according to the product (Caunhye, Nie & Pokharel, 2012)
The logistics management in the marketing department is a way of knowing the department that affects the marketing process. The logistic department and the marketing activities have different perspectives which show the relationship between the companies (Seuring & Gold, 2012).
Mainly the company focuses on four main perspectives while interfacing with the market. They have been discussed below.
The company has faced different types of changes while market interfacing. The traditional views of the market are analyzed and evaluated by the firm. It shows that the marketing activities and logistic activities are completely different from each other. They follow no interface between each other. The perspective of Re-labeling perspective talks about the relation of the two activities by analyzing the market in a larger fraction. The Unionist as the name suggests and it talks about both the activities together. It collectively administrates the presentation of the company (Ngai, Leung, Wong, Lee, Chai & Choi, 2012).
The interface between the accounting and finance department is one of the very important interfaces. It deals with checking the firm’s accounts and the finance sector. It tells about the economic benefits that the firm goes through. The Golden bridge foods manufacturing company also takes help of the accounting and finance department. It administers of the company’s logistic nature from top to bottom. It gives suggestions to improve the performance of the business in finance and accounting. The company’s finance and accounting department investigate and evaluate the overall all expenses and gains done by the company. The Golden bridge foods manufacturing company is looking at the front position to take only some more ladders to cut and administer the added cost (Soysal, Bloemhof-Ruwaard, Meuwissen & van der Vorst, 2012).
The time from ordering the raw material from the supplier till the product is reached to the customer, the product has to go through many stages like placing the order, then placement information is received, the order is packed and shipped. This period is called order cycle (Hofer, Eroglu & Hofer, 2012).
In other words, Order cycle time refers to the time period between the insertion of one order and the next order. It is the specific time duration between two orders which are placed in order. The time period between receiving and placing of an order is known as the order lead time. The Golden bridge manufacturing company is using the effective and unique order cycle techniques to meet the goals and objectives of the firm. It is using innovative techniques and method to maintain the order cycle in the company (Subramanian & Ramanathan, 2012).
The Golden bridge foods manufacturing limited has to go through the same order cycle while supplying its products. The Company uses best technologies and better advancement techniques in order to manage and keep a check on the order process (Kudla & Klaas-Wissing, 2012). The following steps are used by the company for managing the best logistic activities of the firm:
The placed order is made ready to be shipped after coming from the suppliers. This is the first level of company’s production process (Lee & Lam, 2012).
After the placement of order, it is checked time to time till it does not reach to its customers. The calculating the Economic Order Quality point, the firm evaluates and analyses the minimum stock left in the warehouse, which is the other evaluation technique. Lastly, the order is placed by the company according to the minimum inventory level and the production level of the Golden bridge foods manufacturing limited (Gligor & Holcomb, 2012).
Key performance indicators (KPIs) of Golden bridge foods manufacturing limited according to the investigation states and the key performance indicators role in the company is to check and measure the performance of the order that is been supplied by the company is reached or not to the customer. The tracking record of the product at every step of the process is checked and is updated to the customer (Barney, 2012).
Inventory management is very important in any business. It is recommended for every firm to maintain an inventory to keep the extra units that are required in future, safe. It is a method of estimating the amount of stock left in the business and the number of units to be called later. The Golden Bridge foods manufacturing limited maintains a proper inventory. It manages the record of the amount of inventory left and the number of units further needs to be called as an inventory (Sarkar & Sarkar, 2013).
The process of managing the inventory by the company is commendable. They work with perfection with managing the stock in the warehouse.
Some recommendation has been suggested for the improvement in the management with respect to the techniques of inventory management which have been discussed below.
This technique of inventory management checks and measures the amount of stock left in the warehouse. It is recommended to call for more stock only when there is a minimum amount of stock is left in the warehouse. This is valuable as to meet the company’s inventory management system effectively and efficiently (Cárdenas-Barrón, Chung & Treviño-Garza, 2014).
The fixed order point stands for fixed order point. This technique of inventory management is recommended in the company because it allows maintaining the fixed amount of units of the product left in the inventory. This is done to match the units sold with that of units left in the warehouse as a stock.
The fixed order time refers to the fixed time. This technique of inventory management is recommended so that the company can order the number of units to keep it as a stock within a fixed time. The company is asked to give a timely call to the suppliers to make the units ready for supply. This allows the company to meet the requirements of the customers (Borio, 2014).
Conclusion
The report is based on the significance of the logistics management. Further, it explains the economic order quantity, inventory management and various kinds of interfaces. After various researches, it has been concluded that logistics management is very important for every company. The techniques and strategies of the logistics management that are used by the company is increasing the chances of earning profits and revenue. Further, the recommendation has been given to flourish and expand its business more efficiently and effectively in the market by adopting the various techniques and strategies. The recommendations present in the report will allow the company in reducing the cost and increasing the quality of supply. The economic order quantity and inventory management also play a vital role in logistics management.
References
Barney, J. B. (2012). Purchasing, supply chain management and sustained competitive advantage: The relevance of resource?based theory. Journal of supply chain management, 48(2), 3-6.
Borio, C. (2014). The financial cycle and macroeconomics: What have we learnt?. Journal of Banking & Finance, 45, 182-198.
Bosona, T., & Gebresenbet, G. (2013). Food traceability as an integral part of logistics management in food and agricultural supply chain. Food control, 33(1), 32-48.
Brandenburg, M., Govindan, K., Sarkis, J., & Seuring, S. (2014). Quantitative models for sustainable supply chain management: Developments and directions. European Journal of Operational Research, 233(2), 299-312.
Cárdenas-Barrón, L. E., Chung, K. J., & Treviño-Garza, G. (2014). Celebrating a century of the economic order quantity model in honor of Ford Whitman Harris.
Caunhye, A. M., Nie, X., & Pokharel, S. (2012). Optimization models in emergency logistics: A literature review. Socio-economic planning sciences, 46(1), 4-13.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Fernie, J., & Sparks, L. (2014). Logistics and retail management: emerging issues and new challenges in the retail supply chain. Kogan page publishers.
Gligor, D. M., & Holcomb, M. C. (2012). Understanding the role of logistics capabilities in achieving supply chain agility: a systematic literature review. Supply Chain Management: An International Journal, 17(4), 438-453.
Hofer, C., Eroglu, C., & Hofer, A. R. (2012). The effect of lean production on financial performance: The mediating role of inventory leanness. International Journal of Production Economics, 138(2), 242-253.
Kudla, N. L., & Klaas-Wissing, T. (2012). Sustainability in shipper-logistics service provider relationships: A tentative taxonomy based on agency theory and stimulus-response analysis. Journal of Purchasing and Supply Management, 18(4), 218-231.
Lee, C. K. M., & Lam, J. S. L. (2012). Managing reverse logistics to enhance sustainability of industrial marketing. Industrial Marketing Management, 41(4), 589-598.
Ngai, E. W. T., Leung, T. K. P., Wong, Y. H., Lee, M. C. M., Chai, P. Y. F., & Choi, Y. S. (2012). Design and development of a context-aware decision support system for real-time accident handling in logistics. Decision support systems, 52(4), 816-827.
Sarkar, M., & Sarkar, B. (2013). An economic manufacturing quantity model with probabilistic deterioration in a production system. Economic Modelling, 31, 245-252.
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), 1513-1520.
Seuring, S., & Gold, S. (2012). Conducting content-analysis based literature reviews in supply chain management. Supply Chain Management: An International Journal, 17(5), 544-555.
Soysal, M., Bloemhof-Ruwaard, J. M., Meuwissen, M. P., & van der Vorst, J. G. (2012). A review on quantitative models for sustainable food logistics management. International Journal on Food System Dynamics, 3(2), 136-155.
Subramanian, N., & Ramanathan, R. (2012). A review of applications of Analytic Hierarchy Process in operations management. International Journal of Production Economics, 138(2), 215-241.
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