Decisions In Logistic Management

Question: Discuss about the Decisions in Logistic Management. Answer: The impact of the logistics decision and understanding of the logistics concepts has been seen in term of the application of concepts of order management using order cycle and customer service with respect to time and dependability factors. It has been previously observed that the leasing on the warehouse per square foot is $5.50 every month. It has been further observed that the company is able to include the monthly cost for warehouse which is situated across 1300 square this has been further considered on monthly basis and the cost for leasing operational cost such as utilities, insurance and taxes is observed to be $1,300. It has been also observed that the company wishes to run its business operations in terms of both ocean freight forwarding and motor carrier, which will be carried out by trucks to transport the Goods from Hong Kong to Canada. The main implementation of the tools related to order management using order cycle and customer service has been shown in case of Yusen logistics, which is based in Hong Kong, and they are known to offer ocean freight forward shipping[1]. The first strategy related to the implementation of order cycle has been explained with the help of a diagram as follows: Figure 1: Order cycle for the ocean transport The main operation of the maintenance of the order cycle is seen in form of implementation of ERP to offer maximum flexibility to the suppliers of the retail product. The first process in the order cycle will consist of two important aspects, namely Order to Shipment process and Customer Invoice to Cash. The order to shipment process is initiated as soon as the customer is seen order goods till the time the designated warehouse staff will ship the merchandise. The customer invoice to cash transaction is seen in terms of the application of the various types of the concepts related to the invoicing of the customers delivery of the products and the closing of payments, which are being initiated from the buyers side. The reduction in order cycle will help the manufacturers to contribute Yusen logistics in meeting the delivery dates and reduce the lead times. The proper management of the order cycle will further enable to procure the rush order from the customers and result in the overall reduction in the cycle time[3]. By the application of the ERP in the companys logistic system, the entire functions would become integrated. The highly customized ERP system can integrate with each of the areas of the company from purchase and procurement to the delivery of the goods. When the order received by the company, this will simultaneously reflect in the finance department. This way the company can easily track the records of the goods and reduce the order cycle. On the financial perspective, the company will reduce the warehouse time and gain profitability. On the other hand, the company can recognize the defective products with this integrated system of logistic operation. It means the company can decrease the operating expense and normal loss by the application of this aspect of logistics. In order to improve the dependability Yusen logistics needs to follow the concept of customer cycle based on the devising a strategy for the current logistics initiatives and the scope of improvement which can be made in terms knowing the present gaps and the ideal vision to improve the future scope of the customers Figure 2: Customer Service Cycle The customer time constraint strategy needs to be further maintained by following of the strategy of procure to pay cycle. It has been observed that by following the procurement to pay cycle Yusen logistics can reduce the time related the procurement of the payments from the customers. Figure 3: Procure to pay cycle Delivering goods on time and as per their choice are the basic criteria for any logistic company. By tracking records by the application of ERP system in the logistic services, the company can increase its responsiveness towards their customers. Thus, an extended customer acceptance will help to increase to gain profitability of the company. In this way, the company gradually increase the volume of sales. References Dyck, Harold, Linda C. Gordon, and David Kung. "IT Deplyment Assessment: A Two-Dimensional Supply Chain Life-Cycle Management Framework for Strategic Analysis."Communications of the IIMA9.2 (2014): 1. Ellram, Lisa M., Bernard J. La Londe, and Mary Margaret Weber. "Retail logistics."International Journal of Physical Distribution Logistics Management(2013). Heskett, James L. "Controlling customer logistics service."International Journal of Physical Distribution Logistics Management(2013). Popa, Virgil. "The financial supply chain management: a new solution for supply chain resilience."Amfiteatru Economic15.33 (2013): 140. [1] Ellram, Lisa M., Bernard J. La Londe, and Mary Margaret Weber. "Retail logistics."International Journal of Physical Distribution Logistics Management(2013). [2] Dyck, Harold, Linda C. Gordon, and David Kung. "IT Deplyment Assessment: A Two-Dimensional Supply Chain Life-Cycle Management Framework for Strategic Analysis."Communications of the IIMA2 (2014): 1. [3] Heskett, James L. "Controlling customer logistics service."International Journal of Physical Distribution Logistics Management(2013). [4] Popa, Virgil. "The financial supply chain management: a new solution for supply chain resilience."Amfiteatru Economic33 (2013): 140.