Logistics Chapter 7 and 8 PDF

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It is a document which includes information of chapters 7 and 8 of global logistics management....

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OPER8020-17F-SEC1 GLOBAL LOGISTICS MANAGEMENT

QUESTIONS: - CHAPTER 7 & 8 ALAY BRAHMBHATT 8070922 OPER8020-17F-SEC1 GLOBAL LOGISTICS MANAGEMENT PROFESSOR BRUCE WILLIAMSON JANUARY 3RD 2018

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OPER8020-17F-SEC1 GLOBAL LOGISTICS MANAGEMENT

CHAPTER 7 – LOGISTICS SERVICE PROVIDERS 1.

What is own-account’ transportation? The concept of own-account transportation is very traditional. Own-account transportation is when an organization provides its own transport services. Since last many years, many business organizations have moved away from ownaccount transportation to third party transportation. This step has provided many opportunities for transport and logistics companies.[ CITATION Lalon \l 1033 ]

2.

Describe the different types of logistics service providers. The different types of logistics service providers and services provided by them are as follows:  Freight carriers-Normal carriage of freight by hauliers, trucking companies, airlines, shipping companies, etc.  Freight forwarders-Make transportation and other arrangements  Couriers-Urgent delivery of commodities  Integrators-Offer integrated services from consigner to consignee  Agencies-Companies combine buying power to gain reduced freight transport rates [ CITATION Lalon \l 1033 ]

3.

Describe the numerous factors that have to be considered when selecting logistics service providers. How in practice do you think consignors make decisions concerning logistics services? Following are the factors:  Cost approach  Transit time  Terms and conditions of carriage, applicable incoterms  Insurance factor  Reliability and performance  Information systems  Reverse logistics issues  LPS’s history  Client’s reviews  Implementation or ability to alter conditions [ CITATION Lalon \l 1033 ]

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OPER8020-17F-SEC1 GLOBAL LOGISTICS MANAGEMENT

Consigners make decisions concerning logistics services by considering following factors:  Transportation  Warehousing  Packaging  Trade financing  Managing reverse logistics  Inventory management [ CITATION Lalon \l 1033 ]

4.

What is fourth-party logistics (4PL) and how has the concept evolved in recent years? Fourth-party logistics (4PL) is a supply chain integrator that assembles and manages the resources, capabilities and technology of its own organization, with those of respective service providers with a view to deliver an efficient supply chain solution[ CITATION Lalon \l 1033 ]. In recent years, a new concept known as 4PL has emerged. It was invented and patented by Accenture in 1996. The aim of 4PL is to offer a radical solution that would serve companies with total outsource supply chain solutions[ CITATION Lalon \l 1033 ].

5.

How might we distinguish 3PLs from other LSPs? The companies that provide logistics services are commonly known as LSPs (Logistics Services Providers). On the other side, the LSPs that provide multiple logistics services, often in an integrated manner, are known as 3PLs (Third Party Logistics Companies)[ CITATION Lalon \l 1033 ].

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OPER8020-17F-SEC1 GLOBAL LOGISTICS MANAGEMENT

CHAPTER 8 - PROCUREMENT 1.

What are the differences between an SME business and a global business in terms of how they identify sources of supply? A SME may have a wide range of requirements but perhaps they source from one regional location in a local market, while on the other hand, a global business enterprise having the same requirements perform sourcing activities across various locations, countries and continents[ CITATION Lalon \l 1033 ].

2.

How does consumer opinion affect sourcing decisions? A customer’s opinion is very significant factor in deciding the sourcing strategies and the sourcing decisions are largely dependent on it. Whenever there is sales return or grievances from the customer about the product, the purchasing department of the organization comes into action and contact the supplier of the returned commodity. Customers also provides opinion in the form of feedback based on which the business enterprise gets to know from which supplier they should buy and from which supplier they should not buy. Thus how, sourcing decisions are affected by consumer opinion.

3.

Which environmental factors should be considered when trying to identify the total cost of procuring goods in low-cost countries? Following are the environmental factors:  Green products  Carbon emissions  Transport  Environmental performance  Health and safety [ CITATION Lalon \l 1033 ]

4.

Are rules, such as the EU Procurement Regulations, useful in certain markets and what might the different procurement issues be between the private and public sectors? Yes, the EU Procurement Regulations are useful in developed markets while they are least useful in developing and under-developed economies.

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5.

What elements of risk are there in terms of sourcing and procuring goods from a Western source versus a low-cost country source such as Vietnam? The following elements of risk are there:  Higher cost - Costs are very high when goods are procured from western parts of globe due to advanced technology.  Administrative tasks – As western countries are more advanced and having a systematic approach, administrative work increases in fulfilling the order and as a result more time is wasted.  Legal regulations – There are much more legal regulations in western countries compared to low-cost nations. Hence, again more time is hampered in regulatory activities.  Responsiveness – The suppliers in western countries possess a very large scale of business and they least care about frequent responses to customers. As a result, their approach to response is very negligible.

6.

What type of relationship would be most appropriate with a highrisk/high-value supplier versus a low-risk/low-value supplier? Strategic relationship would be more appropriate with a high-risk/high-value supplier and leveraged relationship would be more appropriate with a lowrisk/low-value supplier[ CITATION Lalon \l 1033 ].

7.

Does value for money versus price help make a more informed procurement decision? Yes, value for money does help make a more informed procurement decision. Value for money is very significant rather than price to make procurement decision more well-versed. Value for money offers best procurement

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8.

What actions could Mattel take to minimize product recalls in the future? Mattel could take the following actions to minimize product recalls or sales return in future:  The company should overcome the problem of design mistake by hiring more experienced and knowledgeable design experts.  New and modern testing technology should be adopted to eliminate the negative impact of the toy products on children.  Mattel should come out with the products such that it creates no harmful effects on children even when swallowed. For example, products with consumables or eatables by children should be manufactured.

9.

What sustainability criteria would you include in a sourcing strategy and how would you manage and measure them in practice? Following sustainability criteria should be included in a sourcing strategy:  Reduction in cost – Rationale sourcing should take in to account all types of costs associated with commodities and services such as purchase cost, consumption cost, maintenance cost, salvage cost, etc.  Compliance and Risk Management – Suppliers need to be ready and aware of all compliance requirements they face to eradicate the jeopardy of supply chain disruption.  Creation of value – Implementation of sustainable procurement practices can produce additional income via premium brand differentiation, income from recycling and commodity discovery. [ CITATION Ora15 \l 4105 ]

10. How could technology and social networking affect procurement activity? Effects of technology:  ERP systems such as SAP and Oracle dominates the corporate market and support the complex organizations with multiple activities in distinct locations.  These technological tools provide a joined approach to procurement and sourcing.

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 The automation in procurement process helps in eliminating the administrative tasks associated with traditional procurement process. Effects of social networking:  Due to social networking, purchasing department can save time to seek suppliers for procurement.  Suppliers become more reliable and trustworthy and as a result they provide better quality products.  The purchasing company gets the advantage of real time information of the supplier. [ CITATION Lalon \l 1033 ]

Bibliography  Lalwani, J. M. (3rd edition). Global Logistics and Supply Chain Management.  Oracle. (2015, April). Oracle E-Business Suite. Retrieved from www.oracle.com: http://www.oracle.com/us/products/applications/green/wp-sustainability-procurement2525294.pdf

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