Logistics Homework Paper on Response to the logistics Discussions on the weekly Briefing

Memo

Light Up My Light, Inc.

To:    Mrs. Elise Ennis (The CEO)

From:    The Senior Logistician

CC:    Tom Perkins (The VP and Head of Logistics)

Date:    September 4, 2017

Subject:    Response totheLogistics Discussions ontheWeekly Briefing

            As per the earlier discussions, the purpose of this memo is to respond to the questions raised during the weekly briefing concerning logistics. It seeks to answer the questions raised by the company CEO and give any other facts of concern in this area. It will highlight the logistics processes of the company and recommend the best possible practices for the department.

#1: Factors of Success in Accomplishing Logistics Objectives

            The integration of adequate technology into the process. Luo (2013) states that the involvement of information technology processes as well as adequate logistics equipment in the process will enhance the logistical and supply chain management operations in the organization. This will improve the overall efficiency of the unit and the entire organization. It will allow the organization to easily monitor the movement of its products and services in and out of the organization and minimize losses.

            The logistics staff also plays a critical role in enhancing the performance of the sector. According to Clausen, Ten, & Klumpp, (2013), an organization needs to have the right employees working in the logistics department to succeed. Apart from having an adequate number of logistics staff, the employees should be well trained on handling logistics matters and are dedicated to the work.

            Creating a good logistics network and having the right service providers. Logistics links the organization with its suppliers and customers. The firm should create a good network and understand it clearly (Luo, 2013). This will minimize the chances of loss due to the inadequacy of goods and services in the chain or oversupply of the same.

            The supply chain adopted in the organization affects logistics. The chain adopted in the organization should be clear and favorable to the logistical processes in use (Clausen,Ten, & Klumpp, 2013).

            The existing relationship between the functional units in the organization and the outside networks affects the success of logistics(Luo, 2013). There should be a cordial relationship between the various departments of the organization and with other stakeholders outside the organization.

2. Modifications in Logistics

            Logistics is concerned with meeting the needs of the customer and satisfying them at all times. According to Luo (2013), the business environment is very dynamic and thus customer tastes and preferences would often change. Following these changes, logistics ought to change to match them. The logistical systems which make up the support plan, the logistics engineering and support management, the designs of the system and the flow of information in the system must work adequately and change in response to the changes. The change in these procedures, therefore, completes the life-cycle of logistics and change management.

3. Fitting ideas into the firm

            The ideas of supply chain and supply chain management must be utilized in every organization that has the various business components such as suppliers, customers, processes and other stakeholders interested in the activities of the organization(Clausen, Ten, & Klumpp, 2013). These ideas are needed for the proper management of the movements of goods and services in and out of the firm. In our case, there is need to produce the right amount and quality of products and supply them at the right time and by the cheapest means possible to the customers or other vendors. Raw materials getting into the organization are also sourced from suppliers through a supply chain.

            Logistics and logistics management ensure that the right goods and services are produced and sold in the firm. There is need to ensure that there is a sufficient quantity of goods flowing in the supply chain system at all times (Clausen, Ten, & Klumpp, 2013). The organization must operate at all times and thus must have the raw materials required all the time. At the same time, the raw materials held in the warehouses of the organization should not be too much to increase the costs incurred by the firm.

4. Review of Costs

A. The measures of effectiveness in logistics include a number of sales of the firm, the degree of efficiency, customer satisfaction and the costs incurred in the department.

B. Analytic Results

Figure 1: Analysis of Effectiveness

The figure 1 above indicates the degree of efficiency of different options. The horizontal axis shows the option from option A to option G whereas the vertical axis represents the degree of efficiency.

4c. Favorable Option

From the figure, option G represented by 7, is the most efficient at a level of 5 with option A represented by 1 being the least efficient.

4d. Reason for the Recommendation

As a strategic move, the management should settle on option G which is the most efficient and with an average cost.

5. Other Information

            Logistics plays a key role in every organization and that the management must ensure that the sector is functional and efficient by adopting the right success strategies for the sector. The dynamic nature of the business environment also affects the sector greatly and thus the management should be willing and ready to adopt other strategies to counter this changes (Clausen, Ten, & Klumpp, 2013). The success of the logistics department significantly affects the performance and profitability of the organization.

References

Clausen, U., Ten, H. M., &Klumpp, M. (2013). Efficiency and logistics. Heidelberg: Springer.

Luo, Z. (2013). Technological solutions for modern logistics and supply chain management. Hershey PA: Information Science Reference.