Week 7: Globally Optimized Operations

Please post more than 2 reply responses of 100 or more words to your classmates or the instructor. Responses should be a minimum of 100 words and include direct questions.

post 1: The detailed process of organizing and executing the various operations in a specific business venture is termed as logistics. Usually, logistics is a name of client satisfaction through regulating the flow of the products from origin to consumption ensuring that the prerequisites of the enterprises engaged are met effectively. Hult (2011) states that “emerging thoughts on quality suggest that three principal sources of customer‐based value creation exist for firms operating in the online marketplace: focus on delivering (1) service quality, (2) product quality, and (3) eBusiness quality.”

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The supply chain management is the main concern of the logistics in the business world. The components of the logistics include the inbound transportation management, outbound transport management, warehouse management, fleet management, order fulfillment, demand planning, order fulfillment, inventory management, demand planning, etc. (Vogt, 2005).

It not only included the provision of goods but also services from origin to consumption. Although the terms logistics and supply chain management are used synonymously in industry and academy and are regarded as the central unit of model management services. In reality, the conception of logistics and supply chain in the core matter is way different from each other with the former having no relationship with organization but the presence of multiple companies and organizations is the main component of the supply chain management process. All in all, this shows the various implications of the modernization in approach to conducting businesses on an organizational level and the various techniques that have been acquired and adopted to survive in the competitive world of business (Myers, 2004).

References:

Hult, G. T. M., Boyer, K. K., & Ketchen Jr, D. J. (2007). Quality, operational logistics strategy, and repurchase intentions: a profile deviation analysis. Journal of Business logistics, 28(2), 105-132.

Myers, M. B., Griffith, D. A., Daugherty, P. J., & Lusch, R. F. (2004). Maximizing the human capital equation in logistics: education, experience, and skills. Journal of Business Logistics, 25(1), 211-232.

Vogt, J. J., Pienaar, W. J., & De Wit, P. W. C. (2005). Business logistics management: Theory and practice (pp. 117-121). South Africa: Oxford University Press.

post 2: Global supply chains have developed a high tendency to ambiguity. To predict, respond, and monitor violations and economic changes around the world, companies require supply chains (Parida et al., 2015). To reinstate the stability, companies are seeking ways in which they can operate and streamline their global supply chains.

Optimization is the process in which extremes in the global maximum and minimum are found. They can either be rated as the best value, or the performance can determine the best choice among various solutions (Jensen, Tran, & Hansman, 2015). The integration of key business processes and activities coordinating a chain of counterparties for them to synchronize the actions performed during production and distribution is known as globally optimized processes. This process adds value to the end customer since essential business services are integrated into the business (Parida et al., 2015).

Concurrently, the global optimization process should be carried out and accepted based on decisions. For instance, optimum local logistics should avoid contradictions with optimum global logistics. At different levels, resource optimization should be performed according to the hierarchy (Jensen, Tran, & Hansman, 2015). Such include the functional area of a subsystem and separating logistics functions, among others. To achieve a high quality of service with lower total costs, optimizing the entire system is vital using supply chain management.

To archive optimized operations, there are five ways, which this can be done. First, reducing all types of activities and losses which lack value. Such activities include storage or surplus stocks and handing of cargoes (Parida et al., 2015). Secondly, improved customer service will ensure operations are optimized. Thirdly, there will be improvements in supply due to communication advancement. Also, new products will have reduced time for development. Lastly, there will be a complete synchronization of efforts while docking, which connect in the chain.

References

Jensen, L., Tran, H., & Hansman, J. R. (2015, June). Cruise fuel reduction potential from altitude and speed optimization in global airline operations. In Eleventh USA/Europe air traffic management research and development seminar (ATM2015), Lisbon, Portugal.

Parida, V., Sjödin, D. R., Lenka, S., & Wincent, J. (2015). Developing global service innovation capabilities: How global manufacturers address the challenges of market heterogeneity. Research-Technology Management, 58(5), 35-44.

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