Challenges of supply chain at international level compared to supply chain in domestic level
Supply chain integration at the international level has more complicated challenges than supply chain integration at domestic levels. Compared to integration at domestic levels, global integration is relatively expensive to manage and sustain. The process required utilisation of a huge amount of resources and workforce at all stages. Moreover, due to limited resources, most of the global supply chain integration is ineffective and unsustainable. However, to counter the problem of limited integration resources, international business entities need to capitalise in their popular market locations. On the other hand, global supply chain integration also faces a challenge of lagging performances. The lagging performance is due to endless needs to meet the ever-changing demands of the company’s customers. To deal with the challenge of lagging performance, modern business entities need to engage in detailed researches to understand the global market demands (Mallik, 2010)
The important of good transportation system over plentiful workflows
Although plentiful workforce is critical in a successful distribution centre, good transportation is imperative in advancing business reputation and profitability. Effective transportation system plays a critical role in ensuring that customers get the required goods within the set time. Reliable transportation is also useful in minimising unnecessary destruction of business products.
On the other hand, based on the available wide range of evidences, there is mutually exclusive trade-off between transportation technology and workforce (Mallik, 2010). Gradually, emerging technology is substituting workforce in the transport sector. Studies further affirm that most entrepreneurs prefer modern technology, as opposed to increasing workforce because technology is cheap and reliable (Mallik, 2010).
In addition, multimode distribution is turning out to be a major phenomenon in supply chain management. So far, there are three popular models for distribution, the multimode deport, centralised, and distributed model. Although multimode distribution model is popular among modern business executives, the strategy has various challenges such as high maintenance, the challenge in stocking, the demand for the huge number of employees, and the strategy inability to integrate modern technology. For example, the Beazer Homes Company in United States has been witnessing huge loss due to its overreliance on multimode model.
The impact of overreliance on global domestic supply over domestic supply in modern destruction and warehousing functions
The overreliance on global supply chain as opposed to domestic chain have largely altered modern destruction and warehousing activities. Global supply chain has forced modern business entities to integrate emerging communication strategy in the warehouse operations. Modern technology has been useful in facilitating effective communication between a local business and other global companies. In addition, the amount of destructions in modern warehouses has been reducing at an encouraging rate. Furthermore, due to increased reliance on global supply chains, most of the local warehouses are becoming irrelevant in the modern supply chain systems. However, to be effective in the modern market, the existing international warehouses need to be equipped with modern infrastructures to enhance quick and effective performance.
Use of information technology in modern logistics
Contrary to other areas of business, logistic departments have not fully embraced information technology in their operations. However, the department has been using modern technology in competing effectively with other departments. In business logistics, information technology is useful in supporting electronic data exchange. Modern information technology is also useful in other activities such as reducing paperwork, increasing business profitability, advancing business competition, and improving effectiveness in billing system.
Disadvantages of intermodal logistic parks
In most instances, the cost of land used in the construction of intermodal logistic park is relatively high and unsustainable to many businesses. Most of the intermodal logistic parks are also inaccessible to reliable market areas. The long distance between the logistic park and business markets reduces business effectiveness and profitability. Businesses that have established a functional intermodal logistic are required to share their profit with parks developers.
Meaning of logistics
Business scholars define logistics as the process of managing the flow of services and goods from the point of origin to business’s consumers. Logistics activities also involve laying out reliable strategies and mechanisms that ensure that the business meets the market need in the most appropriate manner. Logistic professionals are the main players in facilitating the formulation of reliable movement of good from one place to another. Logistic managers have the role of managing the business resources, goods, and information. Logistic managers also have a responsibility of controlling, planning, and implementing of business internal marketing operations. Moreover, logistic professionals have the mandate of facilitating effective transportation, creation, and packing of business goods and services.
Important of electronic data transfer in modern business environment
Based on the available empirical evidences, electronic data transfer is vital in supporting logistics operations in the modern business environment (Christopher, 2010). Electronic data transfer helps in reducing the time required in reacting to customers’ requests. Electronic data transfer also support direct communication between business leaders and customers. Electronic data transfer is also useful in reducing the costs incurred in transmitting information from one point to another. Studies further affirm that electronic data transfer helps the logistic department to engage in productive disposition and planning. In addition, electronic data transfer assists in reducing manual data entry. The elimination of manual data entry reduces unnecessary errors in the business data entry.
Types of methodology in benchmarking logistic system performances
To compete effectively in the modern competitive electronic market, Apple Company relies on external benchmarking methodology. The company organises planned visits to other companies with the aim of advancing its performance. So far, benchmarking has been critical in helping the company produce high quality products that meet the market needs in a cost effective manner. External benchmarking approach has also proved effective in facilitating the understanding of some of the strategies used by other business to progress in the modern market. However, to progress in the modern market, the most appropriate benchmarking methodology for Apple Company is competitive benchmarking. Competitive benchmarking will assists the company produces unique and competitive products in the market. The production of special products will be critical in helping Apple Company retain its customer and market position.
Single sourcing strategies
Single sourcing is the process of identifying one source from a number of sources to help in the distribution of the business’s raw materials and finished products. To facilitate effective single sourcing, business managers have an obligation of vetting all sources to identify a reliable supplier of the business’s products and services. In respect to Global Logistics, post-terror on 11 September 2001, single sourcing helps in reducing the products’ variations. Business that relies on single sourcing produces products with similar quality and features. Single sourcing is also useful in reducing the training and operation cost. However, although single sourcing have numerous benefits to the company, the approach has several shortfalls such as the high supplier’s power and influence as well as the possibility of suppliers failure to supply raw materials in the most appropriate time (Wallenburg, Cahill, Michael, Knemeyer, & Goldsby, 2011).
Third party logistic service providers
Third-party Logistics Services Providers help in integrating transportation and warehousing operations in a business. The Third-party Logistics Services Providers are also useful in ensuring that a business produces products that meet the market requirements (Hertz & Monica, 2003). The third party is also valuable in accessing market condition and proposing effective means of improving the company’s products. Modern information technology and environment has assisted the Third party Logistics Services Providers undertake productive evaluation on the market demands. Moreover, modern technologies have assisted Virtual Logistics Providers interact with other scholars in various parts of the world. Modern electronic has also been helpful in assisting Virtual Logistic Providers adopt reliable means of enhancing operational efficiency.
Christopher, M.,(2010). Logistics & Supply Chain Management: creating value-adding networks, New York, NY: Prentice Hall
Hertz, S., & Monica A., (2003). Strategic development of third party logistics providers. Industrial Marketing Management, 32, (2), 139–149
Mallik, S. (2010). Customer Service in Supply Chain Management". In Hossein Bidgoil. The Handbook of Technology Management: Supply Chain Management, Marketing and Advertising, and Global Management, New Jersey, NJ: John Wiley & Sons
Wallenburg, C., Cahill, D., Michael Knemeyer, A., & Goldsby, T. (2011). Commitment and Trust as Drivers of Loyalty in Logistics Outsourcing Relationships: Cultural Differences Between the United States and Germany. Journal of Business Logistics, 32, (1), 83-98.
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