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Running Head: Logistics Execution and Supply Chain Planning & Responsiveness Logistic Execution and Supply Chain Planning & Responsiveness

 

American Military University

 

Tamiko Terry 1 Running Head: Logistics Execution and Supply Chain Planning & Responsiveness 2 Logistics Execution and Supply Chain Planning & Responsiveness

 

The global business community is growing at a high rate demanding proper measures to

 

ensure that every organization provides high-quality goods and services on time. Firms of

 

different sizes and operations face particular challenges in their daily activities. It requires

 

adequate planning, controlling, proper management practices and storage mechanisms to remain

 

relevant in the market and deal with any logistical issues that may arise.

 

Logistical challenges originate from the initial stage of raw materials suppliers to the

 

final stage where the customers receive the product or service. If a business overlooks any issue

 

in the whole process, it could be disastrous. The management ought to put measures in place that

 

deal with the logistical problems arising. Global logistics is also becoming common among large

 

firms which extend their operations to other nations and states.

 

A company desiring to spread its operations beyond the current location should consider

 

issues such as delivery time, quality of product, adaptation of global logistic plans among other

 

matters. Coordination and collaboration among all the firm's departments are necessary to curb

 

the issues which may arise during the operations. In developing nations, enterprises face a crucial

 

decision to deal with the lack of infrastructure, economies instability, shifting politics, limited

 

technological growth and lack of proper management skills.

 

Managers have to come up with strategic measures which deal with all these challenges.

 

The transition from local to global operations also has a considerable impact on the entire

 

functioning of the organization. No business can operate smoothly without logistical difficulties

 

and therefore strategies to streamline the operations must fall into place. Running Head: Logistics Execution and Supply Chain Planning & Responsiveness 3 Several logistical issues affect organizations, and they include;

 

Changing customer needs

 

In current business transactions, each client requires specific logistics solutions tailored to

 

them. One strategy is no longer efficient for the entire customer base. Every department in a

 

company must work to provide the best services and meet the customers' expectations at all

 

times. Considering the occasional changes in choice and preference of the customers, putting up

 

with their needs at all times can be challenging at times. This problem has resulted in companies

 

adopting measures such as full transparency and reverse logistics (Poirier, 2010).

 

On time delivery

 

For enterprises that have gone global, delivery on time is a significant issue. The shipping

 

containers are unpredictable and may occasionally have breakdowns. This inconvenience results

 

to a delay in the provision of commodities, hence, lowering the trust that customers have in the

 

company. The numerous interconnections among different states will cause the shipping problem

 

to increase due to traffic and increased goods on board (Morton, 2005).

 

Infrastructure

 

In the shipping companies, infrastructure is a major logistical problem. There are

 

thousands of vessels operating around the globe and serving major trade routes. Most of the

 

terminals cannot accept and service vessels of large sizes which cause congestion problems at

 

some of the existing terminals. There are plans to increase the number of terminals and ease the

 

congestion. Although it is a move to solve the problem, it will take time before completion and

 

the infrastructure problem remains a menace. Infrastructural problems significantly affect

 

enterprises in the less developed countries. Their change of route to use facilities in developed

 

countries creates the congestion which contributes to infrastructural problems (Blanchard, 2010). Running Head: Logistics Execution and Supply Chain Planning & Responsiveness 4 Capacity

 

Excess capacity in the ocean shipping and increased pressure in domestic shipping in

 

countries such as the US is affecting the entire world in a sophisticated manner. The freight rates

 

are also on the rise due to the increased numbers of large vessel deliveries. It is ironical that lack

 

of demand was the problem a few years ago, but now excess supply is causing problems in the

 

delivery sector. The US is suffering a shortage in delivery trucks. The increased regulatory

 

policies cost pressure, and aging workforce are limiting the smooth flow of cargo in the local

 

locations.

 

Security

 

Security is an issue of primary concern in several logistic operations. During shipping,

 

commodities shift from one individual to another. The shippers mark the goods with domestic

 

truckers then deliver the goods to a local warehouse. From the warehouse, the carriers transfer

 

cargo into trucks and transport the containers to the destination. By the time the load gets to its

 

last location, it has been through several sets of hands. Unless all persons involved in this process

 

are diligent, security can be an enormous issue. If any party fails to follow the code of conduct in

 

the delivery of the goods, then there is a possibility of something negative happening hence

 

causing problems in the entire shipment.

 

Uncertain supply chain risks and volatility

 

Companies suffer uncertainty and risk since they do not know what awaits them the next

 

minute. Disasters may occur, and it requires the company to put in place actions that will deal

 

with much of the risk. To manage a firm's risk and uncertainty, companies should access

 

potential issues, come up with viable options to take and get transparency on the supplier's

 

operations. Running Head: Logistics Execution and Supply Chain Planning & Responsiveness 5 Less supply chain visibility

 

In domestic shipments, the shipment is usually handled by an individual carrier, hence,

 

facilitate tracking and visibility. Moreover, transit times in domestic shipments are relatively fast

 

which limits extended visibility. Visibility allows monitoring of the product on board and

 

continuous tracking until it gets to the final destination. In global operations, visibility is a

 

significant problem since specialized control equipment is required to monitor the multiple

 

carriers in contact with the product.

 

Greater supply chain variability

 

The difference between the expected and what is delivered is a key issue in any business

 

operations. Customers expect an exact copy of what is advertised to be delivered. Occasionally,

 

this does not happen. It is hindered by several factors including mechanical or infrastructural

 

failure. Companies should monitor their supply chain capabilities and determine how they

 

translate to the global market.

 

Managing supply chain vulnerability

 

Supply chain vulnerability exists where a product can be damaged or infected by nuclear

 

agents or the composition of the products changed. Extended global logistics flows which are

 

less controlled, increase the rate of destruction of the products being shipped. At times where air

 

transport is shut down and inventories rapidly deleted, firms and suppliers suffer the damage.

 

Maintaining supply chain velocity

 

While companies work to grow the product movement in the supply process, thus reduce

 

costs by decreasing the product storage time and destruction, the transit times and border points

 

hinder the commodity speed. Increased movement times and exposure during transport enhances

 

the danger of harm and also reduce speed and flexibility. Running Head: Logistics Execution and Supply Chain Planning & Responsiveness 6 A company's management can adopt several measures to deal with the critical issues that

 

affect logistics. These actions include;

 

Proper governance- The necessary step is to have good leaders and employ excellent

 

management skills at the workplace. Good management entails leading, planning, controlling,

 

coordinating and organizing. Good leadership brings all these functions together which enhances

 

the flow of goods and products. The firms can also rely on the local decision-making authority to

 

conduct sophisticated operations (Ballou, 2007).

 

Reliance on local skills- Where a company is entering a new territory, it should rely on

 

local hiring and local leadership for successful operations. Due to the uncertainty and risks in

 

place, the firm can take advantage of the available skills for successful operations in the new

 

location.

 

Partnerships- Partners who have critical knowledge in a company's field of action can be

 

of essential help in the expansion set up. When spreading to other locations, local partnerships

 

prove to be relevant to the business and the stakeholders in place. The conditions for operation in

 

each nation determine whether partnerships increase or decrease over time.

 

Multiple infrastructures- Communication, transportation and distribution systems vary

 

from one country to another. The demand and operating environment in individual countries can

 

be highly unpredictable. Where there are different forms of infrastructure in place, there is high

 

capability which allows responsiveness and flexibility in the operations. Efficient warehousing

 

operations, proper distribution network and multiple mode transportations create an enabling

 

environment for activities (Atwater, 2010).

 

Reliance on manual processes and frequent touch points- Before maturity, any firm

 

looking to enter the global market can employ the manual processes until it reaches maturity Running Head: Logistics Execution and Supply Chain Planning & Responsiveness 7 stage. Manual processes are prevalent in new markets. The emphasis should be on the integration

 

of individuals rather than systems. This way, a proper relationship is built among people to put

 

up fruitful and operational systems in place.

 

Decentralization- Global markets are growing and expanding daily with companies

 

working to provide high-value commodities. Organizations require new and useful roadmaps that

 

portray the changing market operations and technological advancements. By adopting strategies

 

that enable differentiation, firms can increase their chances of success in the crowded markets

 

(Rushton, 2007). Running Head: Logistics Execution and Supply Chain Planning & Responsiveness 8 References

 

Atwater, C., Gopalan, R., Lancioni, R., & Hunt, J. (2010). To change or not to change: How

 

motor carriers responded following 9/11. Journal of Business Logistics, 31(2), 129--155

 

Ballou, R. (2007). The evolution and future of logistics. European Business Review, 19(4), 332-348

 

Blanchard, D. (2004). Labor pains. Logistics Today, 45 (2), 26-¬?30.

 

Blanchard, D. (c2010). Supply chain management best practices, 2nd ed.

 

Morton, R. (2005). How to balance "on time" with "reduced costs. Logistics Today, 46(6), 27--28

 

Poirier, C., Quinn, Francis J.,& Swink, M.(c 2010). Diagnosing greatness: Ten traits of the best

 

supply chains.

 

Rushton, A. & Walker, S (c2007). International logistics supply chain outsourcing: From local to

 

global.

 


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