Introduction
This assignment will use a number of case studies to discuss how companies have developed their Logistics and Supply Chain Strategies, giving examples of savings realised.
Background
Logistics can be described as the planning function that tries to plan the flow of products and information through a company. A Supply Chain is an extension of this, in that companies try to co-ordinate all aspects of the production process from external suppliers through to the customer or end user. Without proper management or planning, neither of these will be successful. Therefore, if a company is to gain an advantage over competitors, it needs a strategy that takes account of all factors affecting its (and its suppliers) product and information supply.
As stated by Martin Christopher in 2005 “Whilst the phrase “Supply chain management” is now widely used, it could be argued that it should really be termed demand chain management to reflect the fact that the chain should be driven by the market, not the suppliers. Equally the word “chain” should be replaced by “network” since there will normally be multiple suppliers and, indeed, suppliers to suppliers as well as multiple customers and customers’ customers to be included in the total system.”
In order to ensure that the supply chain strategy used within a business is effective it is important to employ measurable standards or performance indicators. These standards should be either qualitative, quantitative, or both. Staff should be able to easily access the data collected and be able to ascertain whether the scheme is effective and, if necessary, spot areas of concern where improvement is required.
The traditional view of a buyer/supplier relationshi ...