Logistics Assignment 2a

Topic:

Discuss the way logistics management or supply chain management creates value in a supply chain. Make use of real-life example(s) to supplement your discussion

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This assignment is submitted in partial fulfillment of the requirements of the

LOGISTICS MANAGEMENT 2A

In the

FACULTY OF MANAGEMENT

April 2011

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I HEREBY CERTIFY THAT THE ASSIGNMENT IS MY OWN ORIGINAL WORK.

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TABLE OF CONTENTS

TABLE OF CONTENT....................................................................................i

LIST OF FIGURES........................................................................................ii

TEXT.......................................................................................................1-10

Introduction........................................................................................1

Value added through production/manufacturing........................................1-3

Value added through suppliers..............................................................3-5

Value added through warehousing.........................................................5-7

Value added through distribution..........................................................7-9

Conclusion.......................................................................................10

Bibliography..................................................................................................iii

List of Figures

Figure No. Description Page

Figure 1:

Figure 2: Intergrated solutions value proposition..................

Distribution channels.....................

2

9

Introduction

Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverses flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers' requirements.

The goal of supply chain management is to link the marketplace, the distribution network, the manufacturing process and the procurement activity in such a way that customers are serviced at higher levels and yet at a lower total cost in this assignment I will discusses the role of logistics in achieving these goals

The purpose of this document is to add to the understanding of how logistics service providers, acting in value chains , create value. The creation of value in the supply chain requires a focused approach to both internal and external processes. Value creation in the supply chain can be achieved and maximised by utilising logistics management through the following:

* Warehousing: The function of warehousing is to facilitate the arrival of goods, maintain and take care of the goods and finally dispatch the goods. Throughout this entire process everything needs to be controlled so to allow steady development during each step of operation.

* Production/Manufacturing: a vital area for adding value in the value chain, there are many areas where manufactures and producers can create a competitive advantage for their product and therefore increase the value and force of the entire supply chain.

* Suppliers: the selection and expansion of suppliers and the efficient performance of supplier activities allows for the creation of value in the supply chain, through the decrease of price and time and creates value-added utilities for the customer.

* Customer service: a series of activities designed to enhance the level of customer satisfaction - that is, the feeling that a product or service has met the customer expectation." Turban et al. (2002).

Integrated Solutions Value Proposition

Improve Satisfaction

Provide Supply Chain Visibility

Pro-active warnings on delays and non-conformities

Increase Process Efficiencies

Reduce manual processes, better accuracy and reduced errors

Better focus through exception management

Make Collaboration Efficient

Communicate efficiently with your Transport Provider

Reduce cost burden on your Transport Providers

http://www.teleroute.com/HOMEPAGE/IntegratedSolutions/EN/tis_value.htm

Value added services in logistics

Value added services are services that enhance transportation, warehousing, and certain logistics offerings. By using value added logistics it helps companies and providers to lower inventory footprints of finished goods by postponing the labeling and final assembly