SUPPLY CHAIN AND LOGISTICS 1

SUPPLY CHAIN AND LOGISTICS

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Question 1

Supply Chain Management is overseeing the shipment of products and materials from the

point of manufacturing to the selling point to the buyer. Numerous of global chain of supply choices

are taken every day in a wide range of sectors, influencing how goods are marketed, moved,

produced, and processed. According to Christopher, (2016) the supply chains vary depending on the

size of the Firm and the complexity and amount of the products produced, but most supply chains

have elements in general, such as: Customers start the chain of events because they want to

purchase a commodity that a company sells. If the products must be manufactured, the buying order

would have a provision that must be met by the assembly facility. The planning staff will devise a

manufacturing strategy for the products used to fulfill consumer orders. The Firm would then have

to buy the materials used to manufacture the products.

The department of purchase receives a list of materials and equipment that the

manufacturing department needs in order to satisfy customer orders. Manufacturers include raw

materials, which are then checked for quality and precision before being stored in a warehouse. A

processing plan guides the delivery of raw materials to the manufacturing field (Jabbour et al., 2019).

These raw materials are used to create the finished product that the consumer has ordered, and then

they are delivered back to the manufacturer. When the manufactured product reaches the

warehouse, the logistics department selects the most dependable distribution process to ensure that

the goods are delivered on schedule, even though the customer's deadline has passed.

Logistics is the management of goods flow between the origin point and the point of demand

so as to meet the demands of businesses. Meat, materials, livestock, liquids and machines, as well

as abstract elements such as experience and time, are all dealt with in logistics (Yu et al., 2017).

Information processing, material management, manufacturing, storage, inventory, shipping, and

warehousing are all common components of physical object logistics. Finished product arrives at

the warehouse, the logistics department selects the most dependable distribution process to ensure

that the goods are distributed on schedule, even though the buyer's deadline has passed.
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The difference amongst logistics and supply chains is occasionally muddled. Supply chain

includes distribution and procurement, which therefore has a much wider scope, as it entails many

businesses, such as vendors, distributors, and sellers, collaborating to satisfy a customer's demand

for a product or service (Christopher, 2016). Inbound Transportation An inbound distribution

manager is in charge of all facets of the company's incoming cash flow used to supply goods or

services. Arrangements with suppliers will be handled, raw materials will be accessed, inventory

costs will be negotiated, and quicker delivery will be planned.

Packaging and shipping are two topics that outbound logistics operators are obsessed about.

She/he will utilize the warehousing procedures to keep the final products safe and accessible. Since

products will need to be shipped to a buyer at any moment, meticulous preparation is needed. Since

stored supplies do not produce sales, keeping as less inventory as possible is advantageous, so the

outbound logistics manager must therefore strike a balance between market cost effectiveness and

consumer demand (Hackius & Petersen, 2017). The transportation task of outbound logistics is by far

the most complicated. Without shipping, there is no logistics. Logistics became an increasingly

important part of supply chain management and consumer demand as the global economy moved

into the twenty-first century. In less than two decades, logistics management has affected inventory

movement to meet or exceed industry demand. Companies found that by implementing a

framework philosophy for logistics and organizing the whole organization, they could cut costs and

increase productivity.

Forming partnerships with retailers, delivery providers, and warehouses, as well as

connecting these services through streamlined systems, improved the logistics of getting products to

customers. As a result, running costs are reduced and delivery is expedited. Understanding the

way logistics system operates necessitates careful preparation when calculating what is required, as

well as an emphasis on sourcing supplies and monitoring how fast products are manufactured in

order to ensure prompt distribution to the customer (Hackius & Petersen, 2017). Overcomplicating

cooperation and resources through organizations aids in the creation of a process blueprint that
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lowers costs by increasing exposure and enhancing overall consumer awareness. Cost-cutting steps

include reduced warehousing charges and sourcing based on supply estimates, improved warehouse

control, efficient packaging, and timely delivery to end-users.

The logistics within the supply chain are changing to meet the needs of the consumer.

Consumers often order products using Tablets, Smartphones, iPhone and iPods, with the expectation

of receiving them within 24 to 48 hours. To meet these demands, businesses must improve their

supply chain management to accelerate order contentment and efficiently ship products using the

most reliable, timely and cost-effective methods possible. When companies create a supply chain

logistics roadmap, one aspect of the blueprint remains concentrated, moves rapidly and successfully

and lessens charges, resulting in increased client gratification. Logistics aids companies consider

their distribution chain's key metrics and long-term goals so they can get the right thing to the right

place at the right time.

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Question2:

A third-party logistics company.

A third-party logistics (3PL) supplier is an organization that specializes in providing

consumers with packaging, transportation and, delivery services. These buyers outsource these

types of operations to a third-party logistics provider and rely on the third-party logistics provider to

provide end-to-end process management. 3PL services are an essential aspect of supply chain

management, and the vast majority of multinational companies use them all over the world.

Many 3PL firms specialize in different aspects of the supply chain and offer a diverse

variety of logistics services. The majority of logistics suppliers fit into one of the following groups:

The method of purchasing and collecting products from other regions of the supply chain is known

as procurement; Fulfillment of Orders entail getting orders from buyers, selecting and packing

them, and arranging them for completion and shipment; Storage: Holding goods for a limited

amount of time in warehouses and other associated buildings ;Logistics: goods consolidation,

deconsolidation, management, and transportation are all coordinated by logistics.

IT device integration, product control, and data management are some of the additional

resources offered by 3PLs. Order administration, execution, and storage are three of a 3PL's key

functions. A 3PLs provider can: Customers, the general public, and others can make inventory

orders as part of an order fulfillment service (Goswami, 2020). Inventory management and stock

deduction levels as orders are given. Choose the item you want from their warehouse's stock. Pack

the sent object to be shipped upwards, as well as exchange monitoring, reverse logistics, and other

associated services, and arrange for the item's loading and distribution to its worthy recipients.

Ordering and collecting supplies from ambitious of the supply chain is the basis of

procurement. A 3PL vendor can accomplish record on behalf of their consumers as part of obtaining

and reception service. Recognize when inventory levels are poor and place orders with retailers and

distributors. Arrange for supplies to be delivered to the 3PL warehouse from the retailer or producer.

Receive supplies into the 3PL warehouse and store them before they are ordered or needed

anywhere else. Order administration, delivery, and storage are three of a 3PL's core roles. A 3PL
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provider may, as part of an order fulfillment service, get requests for products from consumers,

members of the public, or others, when orders are issued, manage inventory and subtract from stock

volumes. Pick up the desired object from their warehouse's stock (Sinani, 2020). Pack the requested

object in order for it to be sent onwards, Arrange for the item's loading and delivery to its final

destination. Order delivery, collection, and packing may take place at different supply chain nodes,

as part of eCommerce, for onward shipment to 3PL buyers or other logistics providers, or as part of

retail.

A 3PL provider's primary responsibility is to maintain the secure storage of products before

they are needed elsewhere. A 3PL company may provide the following as part of their storage

services: Public warehousing that can be delegated to buyers based on priority, availability, and

demand, Preassigned and contracted out contract warehousing to a particular client for a specific

period of time Specialist storage for a variety of items such as additives, food, and materials that

must be stored in specific conditions (Sinani, 2020). Storage of expensive, volatile, or otherwise

vulnerable items in a high-security environment Tracking and placement of goods inside the

warehouse for quick detection, storage, and retrieval Inventory control is essential and reviewing to

ensure the precise receipt, stock level supervision and circulation of goods. Forwarding of goods.

Freight forwarders are companies that coordinate and handle shipments for other companies. A

freight forwarder may be a third-party logistics supplier or partner with logistics firms to rental out

space in delivery convoys, maintain customer and provider partnerships,

Getting products from point A to point B. While there are many techniques for switching

modes of transportation, a few of the most common are: inter modal transport, which uses shipping

containers that are configured to efficiently connect with other modes of transportation, and cross-

docking, which allows for quick unloading, transfer, and loading of merchandise, as well as

consolidation and deconsolidation. For greater performance, these two modes of mode conversion

can be merged, build plans, and report on results. Using GPS and Consolidation and

deconsolidation of goods. Consolidation and deconsolidation are two different things. A 3PL
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supplier consolidates supplies from different containers into a single shipment so that they can be

shipped together. Deconsolidation is the inverse of aggregation, dividing a package into smaller

containers of separate recipients and destinations.

Third Party Warehouse Services

Third-party logistics is based on outsourcing every aspect of the shipping, warehousing, or

delivery facilities to a third-party company. From the beginning, you will see how this simplifies the

operation of every company delivery. It doesn't stop there. Any operation or approach relating to

logistics may be provided by a third-party logistics company. Third-party warehousing is one of the

most often used facilities in this category. A third-party warehouse will stock, outsource, and sell

everything you need while saving you money. A third-party warehouse, in addition to customizable

business consulting, will benefit you and your company greatly.

The biggest benefit of this approach is that it saves money. This is what pushes medium-

sized companies to outsource their logistics. Distribution and warehousing can be costly. Businesses

can use a third-party warehouse to stop spending more money than is required (Hofmann &

Osterwalder, 2017). They'll put their money to use in other areas as well. You can save money on

those additional charges by using a third-party warehouse. Almost all large companies can use some

form of third-party logistics facility, according to several surveys by supply chain management and

consultancy firms. This is because it is the safest way for most companies to tackle rising storage

costs.

While the most critical part of using such programs is to save money, it gets more specific

than that.  Below are only a few of the advantages of third-party warehousing: Time is freed up to

concentrate on core market, transportation costs are reduced, and service levels are improved (Li et

al., 2018). Experts on supply chain management supervise the project. Reduces high capital

investments—lower overhead expenses, no uncertainties and costs of running and operating a

factory—no warehouse labor benefits and wages, balancing delivery requirements, productive and
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reliable freight transport - Ability to scale warehousing and logistics requirements efficiently and

rapidly.

As previously said, third-party warehousing has other advantages and incentives that you

can take advantage of anytime you need them. Many of these elements are used in third-party

logistics. However, it is warehousing that draws companies looking to cut costs in the first place.

Third-party warehouses have proved to be one of the most successful industry logistics techniques

due to their versatility and professional management. Consider them a smart way to accelerate the

growth of the business.

References

Christopher, M. (2016). Logistics & supply chain management. Pearson Uk.

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Goswami, M., De, A., Habibi, M. K. K., & Daultani, Y. (2020). Examining freight performance of third-party

logistics providers within the automotive industry in India: An environmental sustainability

perspective. International Journal of Production Research, 58(24), 7565-7592.

Hackius, N., & Petersen, M. (2017). Blockchain in logistics and supply chain: trick or treat?. In Digitalization

in Supply Chain Management and Logistics: Smart and Digital Solutions for an Industry 4.0

Environment. Proceedings of the Hamburg International Conference of Logistics (HICL), Vol. 23 (pp.

3-18). Berlin: epubli GmbH.

Hofmann, E., & Osterwalder, F. (2017). Third-party logistics providers in the digital age: towards a new

competitive arena?. Logistics, 1(2), 9.

Jabbour, C. J. C., Sobreiro, V. A., de Sousa Jabbour, A. B. L., de Souza Campos, L. M., Mariano, E. B., &

Renwick, D. W. S. (2019). An analysis of the literature on humanitarian logistics and supply chain

management: paving the way for future studies. Annals of Operations Research, 283(1), 289-307.

Li, Y., Kannan, D., Garg, K., Gupta, S., Gandhi, K., & Jha, P. C. (2018). Business orientation policy and

process analysis evaluation for establishing third party providers of reverse logistics

services. Journal of Cleaner Production, 182, 1033-1047.

Sinani, F., Erceg, Z., & Vasiljević, M. (2020). An evaluation of a third-party logistics provider: The application

of the rough Dombi-Hamy mean operator. Decision Making: Applications in Management and

Engineering, 3(1), 92-107.

Yu, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2017). E-commerce logistics in supply chain

management. Industrial Management & Data Systems.