Logistics and Supply Chain Article Analysis
Organizations continually seek ways to reduce costs, improve productivity, and customer satisfaction while attaining competitive advantage. As a result, organizations rely on supply chains and logistics to coordinate improvements and productivity across marketing, production, and finance departments within an organization and across organizations to meet goals and objectives. This paper uses three articles as a basis of how logistics and supply chain management processes meet customer requirements. Logistics will also be defined along with a discussion of the of supply chain logistics in organizational strategy. Implications of poor logistics and supply chain management are reviewed and the identification and description of customer satisfaction requirements influencing logistics and impacting the supply chain are examined. Finally examples of inappropriate and appropriate logistics planning that leads to customer dissatisfaction or satisfaction are illustrated.
Logistics is a part of the supply chain process. Murphy and Wood (2005) state:
According to the council of logistics management, logistics is that part of the supply chain process that plans, implements, and controls the efficient, effective, forward and reverse 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 (p. 6, para. 3).
The goal of logistics is to have the right item, at the right place, and at the right time for the lowest cost.
Logistics Strategic Role within the Supply Chain
Logistics impact organizational success in attaining goals and objectives. Within the last two decades “companies began to view logistics as more than simply a source of cost savings and recognize it as a source of enhancing product or service offerings as part of the broader supply chain process to create competitive advantage” (Mentzer, Min & Bobbitt, 2004, p. 606, para. 1). Organizations have various strategies including: innovation, increasing profits, improving delivery timeliness, quality, or flexibility. Each strategy offers trade off’s and customer value that requires collaboration among supply chain members and departments within an organization. According to Penske Logistics, “Ford suppliers and carriers currently operate under a single set of transportation and distribution procedures enabling better service throughout the chain” (N. A. 2010).