Logistic is a channel of the supply chain which adds the value of time and place utility.Today the complexity of production logistics can be modeled,analyzed, visualized and optimized by plant simulations software.This is a challenges and solution of logistics management is respective industry.
1)Challenges 1)Challenges of economy The economic element of the enviroment plays a very big role in determining the nature of business.
When times good and country enjoys full emplyment,a firm may find that it can only expand by buying factors of production that are becoming more expensives. Thus to remain competitive, some firm have moved to the third world countries where certains recourse,such as labor are cheaper and more readily available.
Many firm expand rapidly during an economic boom but have to drastically cut down production during an economic downturn.Often associated with economic downturn is rising unemployment.This leads to more calls by local manufacturers for trade barries on competitive imports.
The licensing of importers,control of foreign exchange,imposition of tariff and quotas,use embargoes and various form of administrative measures are example of trade business designed to slow the inflow of foreign goods.
Tax policy is commonly used to achieve both economic and non economics end. A government may impose tax on a particular industry in order to collect funds for certain national objectives.
2) Challenges of Legal-political Legal
The legal element of the environment is concerned with the framework of rules laid Down by the government and within which logistic must operate.
In global economies the laws covers the following areas:
Formation of logistic business The laws in this category include laws specifiying the qualifying age to start a business And the firm¶s legal responsibilities.
Labours These laws protect the right of the worker by providing for 1.Contracts of employment 2.Fair wages 3.Protection againts industrial accident 4.Compulsory insurrance 5.Recognition of trade union 6.Retrenchment benefits
3) Challenges of Technologies The new technology have shown to be critical in enhancing organization performance, competitiveness, increasing the bottom line and attaining customer loyalty in the current complex global economy.
New technology need careful evaluation prior to adaption by a firm: this evaluation need to take into account the entire logistic including it¶s global impact if applicable.
Challenges range come from currency exchange, cultural misunderstanding, laws and host countries policies, communication, time different just to mention few.
New technologies are always surfacing the market some a necessary and can bring superior changes increasing the bottom line and creating a sustainable competitive advantages.
New technologies usually come with barriers and limitations. This selection effort is much more complex in the context of global logistic where oversea partner with major cultural different are present. New technologies come at a cost and through cost-benefit analysis need to be conducted. New technologies are expensive and their implementation may consume tremendous additional non financial resources.
In case where a good evaluations of new technologies is performed resulting in sound decision to acquire or to forgo the technology, the logistic will escape failures. A good acquisition decision does not guarantee future implementation and operation success.
SOLUTIONS OF CHALLENGES LOGISTIC MANAGEMENT
Logistis risk come in all shapes and sizes,most people thinks floods,hurricane, geopolitical is issues and other major event when they think of logistic risk but the increasing conglexity of tody logistic means that there are literally of unplanned event happening everyday.Must be equipped to deal with them in a timely and profitable way or taken in sum, they pose a significant risk to your competitive in the market.The ongoing to deal with these issuescan mean the different between profit and loss in many casses.This is some solution of logistic management challenges:
Solutions of Economy Begin by thinking about the situations to change or improve with little effort and then move to the situation that require more creative and extensive problem solutons skills . Consider all option available and demine the best course of actions. Develop a plan that will allow to work through these challenges empower to succesed. Reflects on challenges situations and devise a plan to improve, propels to feel empower and in control.
Take time to develop a plan to ease anxiousness will give a stronger sense empowerment and enthusiasm againts the toughest circumstances. Identifying the pinch point where problem could distrups logistic and taking appropriate measure to prevent them from harming the business.
Challenges Of Transportation
Through a cooperative process involving committee members and other stakeholder. We have identified the following major challenges in transportation. Note that these are not research frontier; these are major empirical problem facing our local, national and global transportation systems.Part of the continuing task is to identify the resaearch advances needed to meet challenges.
1.Infrastructure renewal and asset management Higher demand are being placed on transportations system at the same time that transportation infrastructure is maturing and public investment is declining.
2.Operations and Congestion The increasing need for efficient and responsive transportation to support the global economy and mobile lifestyle is occuring is an era when the ability to expand network is increasing limited.
3.Environment Transportation system have a direct and large environmental footprint, as well as an indirect footprint through inducing other systems such as cities to manifes in environmentally unsustainable forms.
4.Safety More people and object within transportation system with minimum physical expansion Implies higher incidence of accident, injury and loss of life.
5.Security September 11th 2001, the Madrid train bombing and the London underground bombing vividly ilustrate our vulnerability to transportation-related terrorism, both due to the direct harm as well as strangling of economies and lifestyle due to disrupted transportation system.
Solutions of Technologies
Valve of IT can solve solutions for many logistic management challenges.
Many manufactures are investing in transforming their logistic management practies because the traditional demand planning not designed for today reality.
Logistic management success today defined by the speed and effective of responding constant and unforeseen change.
The demanding requirement where real world variances in a demand, supply and occur require rapid decision and action-areal time logistic.
Production Laws design to protect the community against disaster to protect the health and safety of workers, and protect the investment of the owner by keeping the facilities safe, govern the operation of warehouse and mines.
Consumer protection As competition for sales customers intensifies.some traders become unscrupulous and resort all kind of sales method. Hences the government agencies have forced to take on the responsibities of consumer protection. For instances,the Land Transport Authority regulaties bus,taxi,MRT fares; and The Ministry of Health regulates items that are sold as medical products.
Finance and property Various laws protect the finances and property rights of individuals and organizations. for instances,the intellectual property laws protect authors of original literacy,dramatic, musical and artistic work and the owner of sound recording and cable programs.
Pollutions Stricter rules are result of the world wide acceptance that pollution is due to the green house effect arising from emission from factories and motor vihicles and the use of CFC air coolant.
4).Challenges
of Merchandising & Store Replenishment
Merchandising or Purchasing Lack of visibility from placement of purchase order to receiving. Inability to cost effectively manage less- than ±truckload( LTL ) sized inbound purchase order shipment.
Store Replenishment Having to store inventory in several locations to shorten lead time to store or customer.
Imbalance inventory when multiple distributions centre are stocking the same times. store replenishment arriving from different centre due to the stock imbalances . High inventory level and low inventory turn ratios due to the inability to predict customer demand by product.
Both Purchasing & Store Replenishment High stop-off costs imposed by line harl carriers for delivery to multiple distributions Centre or store locations.
Recurring product damage when shipping less than truckload.
No transportation management software to manage consolidation of less than truckloads and small pack shipment.
Solution of Transportation
Company must decide which transportation mode or multimodal combination is the most cost effective and realible in order to deliver goods to the manufacturing facility as well as to the customer as quickly and cost effective as possible.
There are several cross-cutting development that can inform effort to meet these challenges. These include:
1.The development and disployment of high resolution environmental monitoring systems such as satellite and airborne remote sensing.
2.The development and deployment of locations aware technologies that can report their precise geo-location densely with respect to time allowing fine-grained tracking of vehicle, object and people.
3.The increasing ability to maintain spatio temporal and moving object data.
4.Improving science and tools for exploring and anlyzing complex and massive spatio temporal data.
5.Improving science and tools for simulating transportation, urban and other humans systems from the bottom-up at the level of the individual person.Vihicle or objects .
6.The development and adoption of data standards and information infrustructure for intergrating and inter operating data.
Elevated warehouse are strategically located with access to the country highway network meeting the need customer for a national distribution network.
Solutions of Merchandising and Store Replenishment
It is utilization of pool point of distribution when is sometime reffered to as cross docking. Retailers with high and quick flow through may also refer to this type of distributions as mixing centre.
The pool point solution can solve all the challenges retailers face in the store replenishment such as inventory imbalance and utilizations, replenishments that arrive from different distribution centre and need to reduse inventory and increase inventory turns.
LOGISTIC MANAGEMENT
Definition: part of the supply chain process that plans,implements and control 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 customer requirements.
History and evolution: 1950s-production was the main part of the managers concerned and industry Logistic was once regarded as necessary evil. 1960s to 1970s-due to petroleum prise rise in 1973,the effects of logistics activities On enterprises grew. 1980s to 1990s-global competition encourage more research and development Of logistics. 21st century-logistic alliance,third party logistic(TPL) and globalized logistic started.
Logistics objective are: -quick respond -minimum variances -minimum inventory -movement consolidation -life cycle support
Component of logistic management
-Logistic services,information systems and infrastructure/resources are three component of this system and closely linked.the interaction of the three main components in the logistic system is interpreted as follows.
-Logistic services support the movement of materials and products from inputs through production to consumer,as well as associated waste disposal and reverse flows.They include activities undertaken in house by the users of the services (e.g. storage or inventory control at a manufacturer¶s plant) and the operations of external service providers. -Logistic services comprise physical activities (e.g. transport,storage) as well as non phisycal activities (e.g. supply chain design,selection of contractors,freightage negotiations).most activities of logistics services are bi-direction.
-Information system include modelling and management of decision making and more important issues are tracking and tracing.It provides essential data and consultation in each step of the interaction among logistics services and the target stations.
-Infrastructure comprises human resources, financial resources,packaging material, warehouse,transport and communications.Most fixed capital is for building those infrastructures.They are concrete foundations and basements within logistic system.
