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Principles of logistic management, introduction.

The term logistics is related with the physical inflow and outflow of goods and associated services that are beneficial for a company in terms of linking to the external world before and after the production (Kappauf, Lauterbach, and Koch, 2012). In current business environment, the main challenges faced by the manufacturing company are to produce good quality products and distribute the same to final consumer to respond to their changing needs. Effective supply chain management positively supports companies to ensure availability of right material in right quantity, at the right time, and at the right place (Israr and Gangele, 2013).  The main purpose of this report is to determine the areas in which the core functional domains and logistics could interface. In addition, this report also aimed to analyze the effectiveness of the current order cycle and inventory management. Concurrently, this report also provides suggestions to improve logistics management by applying the theories and concepts. The company selected for this report is L'Oreal.

L'Oreal operates one business  as beauty for more than a period of 100 years and it successfully developed its energy and competencies in this area (L'Oreal, 2015). The company provides its services to men and women worldwide by effectively meeting their beauty desires. In addition, the company is also committed to fulfil its mission and objectives in an ethical and responsible manner. Across the world, a wide range of outstanding brands are developed and marketed by L’Oréal through the use of highly diverged distribution networks (L'Oreal, 2015). It shows that in the success and the development of the company, L'Oreal's supply chain plays an important role. It is also found that around the main business sectors, the company's supply chain is integrated and structured. The company builds three logistics teams such as the sales logistics, industrial logistics, and international logistics to make sure about the effective supply chain management (L'Oreal, 2015). All the logistics teams consider various factors such as control of cost, service quality, productivity and quality improvement, and flexibility to ensure about the success in complex international environment. 

The Interfaces

The interfaces between the inbound logistics or purchasing and the core functional areas such as production, marketing, and finance and accounting are increasingly become important for organizations in order to ensure firm's long-term business survival (Agrawal, 2003). The coordination among all these functions is also essential to maximize the total value delivered by the organization. In addition, it is also found that interfaces between the logistics and other functional departments is also important to ensure the optimum utilization of an enterprise's resources. For example, the interfaces between the logistics and the marketing function is important to make sure about providing final customer satisfaction. Similarly, to ensure the firm's growth and success, managers at L'Oreal might also focus on maintaining the interfaces between the logistics and other organizational functions (L'Oreal, 2015).

There are several areas at L'Oreal such as field warehousing, packaging, forecasts of demand, outbound shipping, and finished goods inventory and post sales parts support in which the logistics and the firm's marketing function might interface (Kappauf, Lauterbach, Koch, 2012). Additionally, to enhance the satisfaction level of end-consumers, the marketing function at the company can interface with logistics. For example, it is necessary that purchasing department has understanding about the needs of final consumers so that the supplier relationships can be developed accordingly to increase the satisfaction level (L'Oreal, 2015). Moreover, in areas like product mix, market research, pricing decisions and promotional activities, the marketing function might interface with the logistics. It would be helpful to ensure better information flow, improved packaging, customer service, and distribution channels.

Moreover, in areas like in-plant warehousing, inbound transportation, raw material and work-in-process inventory, and scheduling of material flow, the logistics and the production function might interface (Sople, 2010). In this, the development of a common boundary between logistics and production function can be beneficial to optimize production run length as well as related warehousing costs  of storing the raw material, WIP and finished products (Rushton, Croucher, and Baker, 2014). It can also be stated that the interfaces between both can be beneficial to make more cost effective production at L'Oreal.

In addition to the marketing and production interfaces, the finance function at L'Oreal might interface with logistics in areas like budgets and allocation of resources (L'Oreal, 2015). It is because the interfaces support in making appropriate budgets for purchasing and allocate resources appropriately. Moreover, the development of common limit between the finance and logistics function can be beneficial to reduce inventory cost, packaging cost, lower production unit costs and meet effectively with different financial needs of the business successfully (Agrawal, 2003). The below diagram shows the interface between the logistics and other organizational functions:

principles of logistics management assignment

It is clear from the above diagram that logistic function at L'Oreal might interface with marketing and production functions in areas like coordination, control conflict resolution, etc. It is also clear that all these functions might also interface with logistic functions to make effective communication link and request for logistic services.

Analysis of the Effectiveness and Efficiency of Current Order Processing System

It is analyzed that current order processing system at L'Oreal is effective and efficient. This success can be evaluated through the data that approx 67 % of UK's women use at least one L’Oreal product (The Logistics Business, 2016). The logistic business at L'Oreal has the responsibility to attempt a complete review of the process in which the company's luxury product division launched the new products as well as the handling process for sales orders. It is found that a world class consultancy team managed the logistics business at L'Oreal that has practical experience to undertake a detailed analysis and also understand difficult business system (The Logistics Business, 2016). It positively supports to improve the efficiency and the effectiveness of the current order processing system.

Moreover, it is also analyzed that L'Oreal analyzes key product information through Edicom's CRP flow, in which the main parameters are exchanged via EDI with some of the main trading partners (EDICOM, 2016). Such kind of analysis supports the company to automate the processing of effective provisioning orders as well as make sure about the proper supply at all times to efficiently meet the needs of each centre (The Logistics Business, 2016). But concurrently, it is also assessed that the previous order processing system was associated with some loopholes such as flexibility and suitability of current tools, and the speed at which sales order are processed. The consultancy team at L'Oreal positively supported to overcome all these issues and make the current system more effective and efficient.

It is also assessed that L'Oreal uses order management software, which help the company to provide up to date order information in one place that is accessible for each sales employees throughout the company (Nas?r, Süphan, 2015). The use of such systems supports the company in a positive manner to reduce time and cost related to order processing system. For example, it is found that in order to help both beauticians and representatives, portals which include electronic product catalogue to provide demo tips, product info, and training materials are built by L'Oreal (Nas?r, Süphan, 2015). These are beneficial to design and produce products that are demanded and expected by customers. It is because electronic product catalogue include detailed information about product specifications and also product images. Furthermore, it also supported L'Oreal to improve customers satisfaction level as well as customer base.

Thus, it shows that although the current order processing system of the company is effective, however in today's global business environment, it is essential for the company to organize regular monitoring and reviews in order to maintain its effectiveness and efficiency level for long-run. It is recommended to L'Oreal that it should manage changes in current order processing system as per changes in the environment and technology development to ensure its long-term success.  Additionally, it can also be recommended that the company should regularly update its order management application to better serve customers through centralized order instrumentation (Nas?r, Süphan, 2015). It is also recommended that L'Oreal should effectively integarte the order management application into the order process to overcome issues related to speed and reduce delivery time. 

Analysis of the Effectiveness of Current Inventory Management

It is analyzed that after standardizing the raw material supply processes and packaging in Europe, a supply chain cockpit was developed by L'Oreal that considers organizational KPIs and targets. It is evaluated that as a part of supply chain information system, the cockpit is connected with production planning information among 13 European plants (Jacoby, 2010). Additionally, the inventory visibility of the cockpit was also extended by linking it to over 100 suppliers through the use of both direct data exchange and a web portal from the ERP system's of the suppliers to its own. The use of this supply chain cockpit is effective to efficiently manage the inventory across the L'Oreal different branches worldwide.

At the same time, it is also assessed that dissimilar to L' Oreal's competitors, the company does not implement the JIT (Just in time) stock management system (Sople, 2009). In contrast, it follows an approach to keep one month's inventory at the CFA level in the month's opening and another one month's inventory at the warehouse. It is evalauted that the use of this approach increases the company's inventory holding cost (Sople, 2009). In addition, it also causes improper forecasting resulting in lower performance as compared to other competitors. Thus, it shows that it is essential for L'Oreal to improve forecasts in order to reduce the company's inventory holding costs and increase the profit margins.

In contrary, it is analyzed that the use of advance technologies such as CRP/VMI supports the company to optimize stocks as well as good delivery at point-of-sale (EDICOM, 2016). Additionally, it is also assessed that regular analysis via EDI also positively supported the company to maintain adequate inventory levels. Concurrently, it is also found that L'Oreal also uses a supply chain index methodology, which is beneficial to estimate supply chain improvemet resulting in enhancing return on invested capital and manage the cost effectively (Cecere, 2015).

Concurrently, it is also found that L'Oreal developed a solution as integrated solution for industrial systems (ISIS), which is beneficial to effectively manage order management, inventory management and real-time material movement (L'Oreal, 2015). Moreover, it is also evaluated that the implementation of OM and ERP solutions together helped L'Oreal to reduce both risk and cost related to manage inventory. It is assessed that this system positively supports the company to effectively manage the current inventory level. But, at the same time, it is also evaluated that to manage a structured supply chain on an international level, it is essential that all the inventory management systems operate on real-time basis. Thus, it is recommended that the company should focus on aligning the needs of logistic function, manufacturing function and inventory management (Israr and Gangele, 2013). Additionally, it should also focus on implementing real-time applications that are available 24*7 in order to ensure the effective management of the inventory and ensure firm's long-term survival, growth and success. 

On the basis of above discussion, it can be concluded that the interface of logistics with other organizational functions is beneficial to make sure about the optimum utilization of resources, enhance total value delivered, and provide business growth and long-run survivability. It can be stated that to reduce the production cost, enhance customer satisfaction, make effective budgets, and allocate business resources effectively, there is need to set common boundaries for logistics and different business functions including production, marketing, and finance. Moreover, it can also be summarized that at L'Oreal in different areas like customer satisfaction and service, budgets, allocation of resources, and raw material handling, and other processes, the logistics function might interface with other functions.

It can also be stated that current order processing system and inventory management processes at L'Oreal are effective and efficient. In this, it is analyzed that the use of advance technological systems, software and solutions such as ISIS, ERP, OM, etc. assist the managers at the company in an effective manner to reduce cost, manage risk and gain other benefits. But, at the same time, there are some challenges such as speed, complex business nature and changing customers' needs. Thus, to effectively meet with all these challenges, it is recommended to the company that it should focus on implementing real-time application software that works 24*7 and supports in reducing the inventory handling cost. It is also recommended that L'Oreal should also implement continuous review and monitoring programs to ensure the success of order processing and inventory management systems and tools. 

Agrawal, D. K. (2003) Textbook of Logistics and Supply Chain Management. UK: Macmillan.

Cecere, L.  (2015) L’Oréal: A Beautiful Supply Chain. 

Israr, M., and Gangele, A. (2013) Logistics across the Functional Areas & Logistics Considerations in System Life Cycle. International Journal of Advance Industrial Engineering, 1(3), pp 48-53.

Jacoby, D. (2010) The Economist Guide To Supply Chain Management. Profile Books.

Kappauf, J., Lauterbach, B. and Koch, M. (2012) Logistic Core Operations with SAP: Inventory Management, Warehousing, Transportation, and Compliance. Germany: Springer Science & Business Media.

Nas?r, Süphan (2015) Customer Relationship Management Strategies in the Digital Era. UK: IGI Global.

Rushton, A., Croucher, P. and Baker, P. (2014) The Handbook of Logistics and Distribution Management: Understanding the Supply Chain.

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Principles of Logistics Management Essay

What are the important concepts relevant to the logistics management by an organization and explain them briefly best concept of logistics management


1)    Assignment Submission: All assignment copies are to be handed in to lecturers on the specific due date agreed upon.

2) Assignment Brief: Select a manufacture that you are familiar with and assume that you are the Logistics manager of this organization. Determine the area in which logistics and the core functional areas (like production, marketing, finance and accounting) might interface and analyses the effectiveness of the current order cycle and inventory management. Based on your analyses, recommend improvements by applying the theories and concepts found in logistics management.  You are required to consult and fully reference a MINIMUM of 10 references (e.g., book; journal article from the full-text databases; current affairs magazine; newspaper etc.) the use of WIKIPEDIA online encyclopedia is NOT allowed. The Word range of this essay is about 2,000 words.

The article must fulfill the following requirements:

    3) Assignment Format:

The report should be presented as follows:

Citation/Referencing Style :: APA

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Principles of logistics and supply chain management - Assignment Example

Principles of logistics and supply chain management

Extract of sample "Principles of logistics and supply chain management"

Supply-chain management deals with regulating the relationships of the business with the stakeholders in order to enhance the quality of services at affordable prices throughout the supply chain. Effective logistics is the core requirement in the enhance customer satisfaction in the supply-chain process. The business should have a detailed coordination of complex operations that involve facilities, suppliers, and organizational publics. Understanding the background of the business environment is necessary as an initial process of principles of logistics and supply chain.

The findings from the case study analysis help the concerned stakeholders to create proper recommendations and conclusions for future running of the business. This paper will focus on Kellogg’s, a national distribution center in the Pacific Asia region to analyze the business situation. Analysis of the business and key findings from the case study will help in answering the case study questions. Introduction According to Murphy and Wood (2011, p.20), logistics is one of the primary requirements of a country’s economic growth.

Logistics creates utility to goods and services, and in the process, it helps to satisfy human wants. Utility is the ability of a commodity to satisfy a given need or want. Murphy and Wood (2011) further identified four types of utility, which are possession utility, form utility, place utility, and time utility. These four types of utility must be organized to interact in the supply-chain process in order to create usefulness of commodities. Logistics activities add value goods and services, especially through time and place utilities.

This makes warehousing an essential part of the logistics system, although warehousing is rapidly being replaced distribution centers. Supply chain comprises of people, resources, activities, and organizations involved in moving a product or service from the supplier to the customer. The management of a business strategically places the supply-chain elements in such a way that they can effectively transform raw materials, natural resources, and components into ready-to-consume products (Bowersox, Mentzer & Speh, 2008, p. 88). Supply-chain management is defined as the process of regulating, directing, and coordinating the stakeholders along the distribution channel to ensure effectiveness and efficiency in the transactions.

Principles of supply-chain management include product differentiation, customization of logistics, proper market planning, product differentiation, strategic sourcing, adoption of a supply chain based on wide technology strategy and development of channel-spanning performance measures. The modern business arena is characterized by cutthroat competition where only organized and effective supply chain managers will survive. Proper management of supply chains requires businesses to adopt strategic processes such as agility, adaptability, and alignment in their distribution channels.

Background and Business Environment The business environment has undergone massive transformations in the 21st century. The current market is not the same as the blacksmiths’ or artisans that thrived in the early 2oth century (Woolven, 2001, p.44). Barter trade existed during the commodity economy because there was any other way traders could have exchanged value for goods. There were not strict supply chains since traders knew where to meet and make transactions. The markets have grown and have become more diversified than

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The concepts related to supply chain management, sustainability in seaport container terminal, supply chain management of business aramex inc, fruit juice logistics, logistics management in organizations, 7045eng-: global logistics & supply chain management, investigation of the e-commerce and associated e-logistics, contemporary logistics.

principles of logistics management assignment


Logistics Management Assignment - 100% Plag Free!!

Logistics Management Assignment

Military supply uses Logistic Management, which is concerned with army equipment, food, and other necessities for military personnel. That is also mainly used in manufacturing sectors of business, which handles the resources and supply chain. In simple language, logistics management means having the right amount of resources in a proper condition and delivering it to capable customers. Technological improvement has produced logistics management software that helped logistics-focused firms accelerate the movement of resources along with the supply chain. Hence, the importance of logistics management has increased with time.

The primary responsibilities of a logistician are to plan out the whole process and coordinate the steps and resources along with the supply chain. Students who want to become a logistician pursue this course. The logistics management course is a discrete program of study in business education. This course teaches students  management , teamwork, leadership, planning, organizing, communication, etc. Therefore, colleges assign students various assignments and projects to teach these management skills in students and provide them with logistics management assignments to check the student's understanding level of the topic and capability of writing their point of view.

Logistics Management – What is it?

Logistics includes a practical organization that makes intricate arrangements and executes complicated operations if we go by the meaning. It manages the flow of goods from one point to another to fulfil the customer's needs. The whole process of collecting, acquiring, storing, and transporting the resources makes a chain which is called a Supply Chain. Logistics Management refers to the integration, coordination, and Management  of goods and services in an organization.

It involves identifying the potential distributors and determining their accessibility and effectiveness. Supply chain management includes logistics management, and its complexity can be analyzed, modelled, visualized, and revamped by dedicated simulation software. It consists of the whole procedure of planning, implementing, and controlling the transportation and storage of goods from the origin to the destination. The movement of goods can be internal, external, outbound, or inbound carriers.

Importance of Logistics Management

Logistics Management plays a vital role in operating supply chains. With the correct logistic Management, companies can save time and money and deliver top-notch customer service. It is essential to run a company smoothly.

Below are some of the reasons why Logistics Management is Considered an Important Element in an Organization:

Whatever the organization's size, logistics can help firms cut costs and save time moving goods from one place to another. Logistics management is essential as it helps improve customer service and adds value to the company by controlling inbound funds, keeping all the inventory in the right place, and organizing the reverse flow of goods.

Aspects Covered in Logistics Management

MBA in Logistics Management instils in students the knowledge of material management, transportation, supply chain management , foreign exchange,  information technology , etc.

The Curriculum of Logistics Management Teaches Many Aspects Like:

Problems Faced While Preparing Logistics Management Assignment

Finding a good topic is crucial while preparing for the logistics management assignment. Many students find this course demanding due to its complexity. Learning logistics software is not a cup of tea for college students; hence, they take support from online tutors to help them understand the concepts. Understanding these software code languages and applying them in a practical scenario are two different things.

When it comes to applying all these codes in real-life situations and making assignments takes a lot of time and in-depth knowledge. That is why students who need more concepts and are out of time start looking for online expert help for their logistics management assignments. The team of EssayCorp presents the best Logistic Management Assignment Writing help at the most suitable prices.

Why Choose Us?

EssayCorp has been a leading assignment writing service provider  for over eight years. Many students have benefited by taking help from us and scored excellent grades in their  assignment writing tasks . We cover a wide range of topics for the students that help them to dive deeper into the concepts. Assignments prepared by our expert writers are self-explanatory.

For us, transparency is foremost before the procedure starts so that students can get all the information and updates about their assignments whenever they want. Our subject matter experts maintain high standards in logistics management assignments so that students do not have to worry about the quality of the content. We have also gained a good reputation among management students seeking online  management assignment help . So, drop a mail or message on our WhatsApp right now to book your logistic management assignment at highly discounted rates!!

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Assignment Questions On Supply Chain Management

Supply chain management case studies.

Quality of product produced and shipped can become weaker when suppliers experience financial issues stemming from contractual performance. This happens primarily when flawed products are shipped to meet present currency requirements. Because of the fact that management is highly interested in cash flow, deliveries start to get behind schedule. Late deliveries or bad quality product is not acceptable so financial ratios must be monitored and acted upon professionally.

Avion Case 1

Changes within the supply chain can disrupt the normal flow of goods and services because each change hasn’t been fully scrutinized. A firm can plan and speculate that a change with have a certain effect on the supply chain, but until those processes have been measured it is impossible to know the true cause and effect of any disruption.

Inventory Management: Planning, Coordination, Controlling Flow of Inventory

Inventory levels are kept by the retailer is affected by the demand patterns of customers and supply relationships with distributors and producers, suppliers to the manufacturer, and so on. The supply chain describes the flow of goods, services, and information from the initial sources of materials and services to the delivery of products to customers, regardless of whether those activities occur in the same company or in other companies. Retailers need to buy supplies on the basis of JIT only if the activity along the supply chain are planned, coordinated, and controlled.

Supply Chain

The main elements of a supply chain include purchasing, operations, distribution, and integration. The supply chain begins with purchasing. Purchasing managers or buyers are typically responsible for determining which products their company will sell, sourcing product suppliers and vendors, and procuring products from vendors at prices and terms that meets profitability goals.

SCHM 2301 MurraySyllabus Spring 2015 V2

(Taken from “Managing Operations Across the Supply Chain” 2nd Edition, by Swink, Melnyk, Cooper, Hartley, Publisher McGraw-Hill, ISBN: 13: 978-1-12-180339-8)

Objectives Of Supply Chain Management

As supply chain is the connection which assists any organization in achieving its core business operations successful by rendering goods or services to its end customers or users. Supply chain of my organization has following nodes:

Essay about Case Study: Avion, Inc.

A good customer is the one who maintains good manner, is trustworthy, and has a good relationship with the supplier. A buying firm wants to be perceived by a supplier as a good customer so that the supplier would be dedicated to complete his tasks excellently, provide high quality of materials, be willing to share his technology, or even offer favors like exclusivities or discounts. All terms, agreements and guidelines between two parties should be spelt out explicitly to avoid unwanted occurrences. For example, Avion, Inc. should not alter its supplier right after the problem arose without searching for root cause of the problem.

In a typical supply chain, raw materials are procured and items are produced at one

The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt

After about a month during which they make other changes like flagging of bottleneck parts, forming dedicated crews for heat treatment and the NCX-10, outsourcing some heat treatment jobs to outside vendors and making engineering changes to some parts, Alex and his team manage to ship a record number of customer orders. However they then perceive a new problem in which their bottlenecks have spread. Jonah steps in again at this point and shows them their erroneous policy of continuously releasing material just to keep the non-bottleneck machines busy all the time. This policy has caused an explosion of the work-in-process. To correct this situation, they work out how much of new material to release so that there is only about a few days of inventory in front of the bottlenecks even though this means that non-bottleneck machines would remain idle at times. Jonah assures them that this is perfectly acceptable and makes sense because ultimately only the bottleneck machine would define their plant throughput.

Target Supply Chain

Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.

T. F. Navy Level II: Western Textile & MFG

The supplier should make sure that he keeps in touch on the progress of the production of the products and inform of any delays, extra costs, or failure that make take place.

Key Systems And Processes Used By Ac Gilbert

Supply chains represent the procurement, production and distribution activities of an organisation. Within a supply chain, these activities are viewed as linked and reliant on one another to produce the final outcome. It is believed that if one component of the chain fails, the whole chain is broken and product/service delivery goals will not be achieved.

Supply Mgmt Case Studies

Joan must start with the basics of setting up the materials management organization to provide an integrated systems approach to the coordination of materials activities and the control of total material costs. She also needs to evolve the supply chain management structure to encompass the planning and management of all activities involved in forecasting, sourcing, and procurement and all incoming logistics management activities. It will create integrated processes throughout the organization. Setting up a cross functional team will address many supply management related activities. In addition, policy will need to be established to ensure all parties know their respective roles and expected involvement.

Durham International Manufacturing Company Essay

Supply change management (SCM) is active in many organizations today. The purpose of SCM is to maximize the company value in order maintain a competitive advantage in the market place. As an Operational Managers (OM) it is essential to oversee the supply chain within an organization. The OM responsibility is to manage the supply chain flow, and to ensure the supply chain has a quality design in order to reduce cost and drive efficiency. (Reid & Sanders, 2010) An organization supply chain includes activities such as product development, sourcing, productions, logistics, material, and other information systems needed to coordinate the movement of goods from suppliers to manufactures, and to final customers.

Food Processing Industry

Supply Chain: Non-availability of core infrastructure like high tech controlled production facilities, grading, packaging, cold chains, logistics, warehousing;

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