Logistics Within the Business Organization

Logistics Within the Business Organization

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Logistics Within the Business Organization

INSTRUCTIONS:

Module 1 - Case LOGISTICS WITHIN THE BUSINESS ORGANIZATION Case Assignment Read the two articles below: Dutton, Gail (2009 Sept.) Selling the supply chain upwards, World Trade, Troy: Vol. 22, Iss. 9, pg. 34, 3 pgs. Rudski, Robert, (2008) Supply Management Transformation: A Leader`s Guide, Supply Chain Management Review, New York, Vol. 12, Iss 2; pg. 12, 1 pgs. In an essay of 3–4 pages, answer the following questions: Why have supply chain management issues often been ignored by senior management? Describe the strategy you would employ to sell senior management on the benefits of focusing more attention on supply chain management. (Be sure in addressing the strategy question that you incorporate examples from Abercrombie & Fitch’s experience described in Dutton’s article and the suggestions noted in Rudski’s article.) Discuss the benefits that might be gained from working closely with 3PLs, 4PLs, and vendors in promoting supply chain management initiatives to senior management. Assignment Expectations Demonstrate critical thinking skills, clarity of thought, and breadth of understanding in addressing the placement of logistics in modern organizations and the reasons senior management has often overlooked the importance and centrality of the discipline. Demonstrate and evaluate creative solutions and strategies for increasing senior management interest in logistics and assessing the benefits of building alliances with 3PLs and 4PLs. Reflect a synthesis of previous course work in logistics and related courses and incorporate new materials presented in the module’s Background readings. Submit your assignment for grading by the end of this module.

CONTENT:
LOG 490Name:Institution:Date:Efficient systems of supply chain management (SCM) and logistics are required for the sustainability of the organization and attainment for competitive advantage. This is because they can rarely be imitated by competitors as supply chains are always unique for each company and, in addition, difficult to manage the logistics and SCM systems of a company. This is due to the challenging and different risks involved. It is, therefore, important for even the senior managers to understand the aspects and benefits of incorporating SCM in a company. This paper highlights the reasons why senior management ignores SCM and provides strategies that could be employed to sell to the senior management the benefits of SCM, including the benefits of working with the key stakeholders while selling SCM.Q.1Per Dutton (2009), the higher a company’s profitability, the less the managers perceive the need to address issues that are related to supply chain Management (SCM). Among the reasons that managers do not see the need for logistic management inherent in supply chain management is due to the organization’s profitability. The managers are highly concerned about the profit margins and not SCM. When a company’s profitability increases, logistics in SCM and issues such as transport become minor costs and managers devote minimal time to management of supply. They place their focus on areas of the company that high returns (Dutton, 2009). However, in incidences where profits begin declining, the managers recognize turn their focus to the efficiency in SCM as now, even the smallest costs become vital for the company. Therefore, in case of decreased profitability, efforts will be placed to recover such profits. SCM is among the strategies employed by companies to increase its profitability through Just in Time (JIT) approaches and inventory management (Dutton, 2009).Supply Chain Management is a combination of various processes that are procurement, regulations relating to law, sales, transport, and financing including other factors. Managers, especially those at the...
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