Logistics Management: Logistics Management

Superior Essays
QUALITY MANAGEMENT
Logistics management can be described as an integrating activity which optimizes and integrates all logistics functions. It also integrates other logistics activities with other related function such as information technology, finance, manufacturing, sales and marketing. Supply Chain solutions play a vital role in identifying and determining a company’s success. Primary results can be found in supply chain, in case there is a small variance in the inventory. In order to counter such consequences, there is the need for an organization to have effective logistics. Management that takes place from raw material to final stage at the correct time and place is carried out by logistics management. For companies to leverage chances
…show more content…
Most business will always adopt the supply chain management in order to ensure that the chain is operating effectively and hence providing high satisfaction to the customer.
The strategy that has been deployed by McDonald is to ensure that the demand of customers is met while at the same time trying keeping the prices low. McDonald also operates on a strategy that it does not begin to cook the food until the customer has placed an order. The Total Quality Management (TQM) strategy assists the customer to reduce or even get rid of food wastage and promote efficiency within the required purpose, but at a minimal cost. The kind of benefits that are associated with this strategy is that it ensures high quality service delivery to the customer. The system is so perfect that it does not cause delays to the customer. Because keeping up the cost of burger is relatively higher, the TQM strategy helps in preventing the spoiling cost. The strategy also helps McDonalds to maintain an eye on the “Economic Order Quantities” which is otherwise vital in identifying how much is supposed to be ordered. There are two major factors that determine “Economic Order Quantities”; high holding cost and low ordering cost (Sallis,
…show more content…
This is possibly a little amount of inventory which is normally put in place to ensure that the unanticipated higher demand is met. The inventory manager uses a weblog to amend and view order proposals. Any time the process of ordering takes place, the weblog creates a proposed order to amend or analyze if necessary. The software is very vital, since it assists managers to view the quantity that has been ordered, the current stock level and the amount of stock that is due at a given time. The system is designed in such a way that it automatically generates a piece of note that shows the quantities along with delivery descriptions. The manager must then click confirm when he has finished selecting the inventory that they wanted to use. Safety stock is, however, very crucial to customers (Pyzdek & Keller,

Related Documents

  • Improved Essays

    Responsible for performing tasks involving the general order, receipt, and delivery of supplies, upkeep and maintenance of all Army supplies and equipment. Scheduled material storage, unserviceable equipment turn-ins, and lateral tool transfers. Tracked shipment status through Radio Frequency Identification to prepare inventory adjustments and analyze delivery reports. Implemented an innovative inventory reduction program for a division Bill of material yard (BOM Yard) in Iraq, Speicher resulting in a cost savings of $1.5 million. Increased Stock takes accuracy levels to 0.001%.…

    • 611 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    SUSTAINABLE SUPPLY CHAIN MANAGEMENT PRINCIPLES From working personally with the Woolworths company I was able to see how and why inventory was transferred from suppliers to stores. The Woolworths company uses a very simple inventory management system. As a supermarket, having the adequate number of stock in stores at all times is pivotal in keeping customers satisfied after every shop at a Woolworths store. In order to achieve this goal, Woolworths supermarkets use an electronic inventory management system that sends alerts to the specific warehouse when stock is low or is expected to run out.…

    • 1424 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    There are four main points of McDonaldization; efficiency, calculability, predictability, and control. Efficiency places an importance on time and cost and using as little of both as possible whatever the outcome is. Calculability has to do with the quantity of an item or how much it costs and how much emphasis is put on it. When there is attention brought to the quantity then it’s very possible that the quality will be lacking due to less time being spent on an individual order. Predictability has to do with the consistencies carried across many fast chains.…

    • 707 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    4. Storage and inventory management 4.1. Chicken: Chicken inventory is for 15 days. Chicken is not stored in the warehouse, in fact there is a separate cold storage area is built for chicken right beside every warehouse in each region.…

    • 1371 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    It is based in the United States and has been operating in the quick service restaurant chain industry for almost 80 years (Bhasin, 2017). It has consistently changed into a main fast food restaurant by developing branches in various sections of the country and also in the foreign markets. McDonald’s is a major brand that is recognized globally considering that it has constantly sustained its standards in the delivery of quick services regarding their food serving to their consumers. A recent study has approximated that in the United States only, the company serves not less than 60 million consumers each month, a determinant of how huge McDonald’s is in the industry (Bhasin, 2017). McDonald’s is among the major fast food chains in the industry and the top competitors of Dunkin…

    • 1411 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    In today 's world supply chain is at the centre of the business, for many decades’ companies have outsourced and organised many jobs to suppliers and intermediaries creating expansion and, recreated designs and through innovative processes, such sourcing has resulted in global supply chain management. It is a connected series of activities which is concerned with planning, organising, coordinating and controlling of materials, parts, and finished goods from supplier to customer. It is concerned with two distinct flows/ function i.e. material flow and information flow through the organization (Stevens 1989). At every point of chain information and material is passed in order to improving the efficiency at every level.…

    • 839 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    In the current manufacturing and business world, quality management has become an important aspect. Demand by for quality goods and services is the primary reason for the pursuance of quality in the outputs. Apparently, consumers have become aware of their right to quality products and services than before. They are therefore more selective on what they purchase. This awareness has increased the competitiveness in the market, and this has forced all firms to result in quality management to cope with the competition.…

    • 1231 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    ANSWER: Question 1: What interactions and discussion need to take place among the marketing, manufacturing, logistics, and finance departments: Launching a new product requires lots of planning in every sector of the company. In this case of Pete’s peanut snack company, investing in the new product should make sure that they are making a profit from every act of launching the product which means marketing, manufacturing, logistics, finance department costs should not be overcome to the profit. The first step to start producing a new peanut product is to forecast the product. The forecasting team must anticipate the future of product by analyzing the same variety product competitors price and demand in the market.…

    • 974 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    By coordinating and streamlining exceedingly critical business forms with Supply Chain Execution, logistics administration suppliers make new chances to: • It manages and moves products more efficiently. Secures and organizes shipments better via computerizing stock management, and incorporating logistics forms with enterprise asset planning system and solutions used by clients and…

    • 1315 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    INTRODUCTION: There has been a significant rise of Internet based information, developments in communication and technology. A dedicated SCM can be framed with these advancements in order to face the strategic and operational objectives of a company. It is estimated that one in six firms had reshored its manufacturing to UK from other countries. The concept of Supply chain is to integrate the end to end operations of a business, managing the sources, flow of materials considering a total systems perspective among multiple functions and suppliers.…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Focusing on customers needs not only help McDonald’s to differentiate its products among its competitors but also help the company to retain its current customers and to attain new customers, thereby increased its sales…

    • 1019 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Question 1. Aggregate inventory data suggest that while overall average inventory levels are declining, the relative percentage being held by manufacturers is increasing. Explain why you think this observation is either true or false. Describe how such a shift could benefit the operations of the entire channel and how manufacturers could take advantage of the shift.…

    • 1166 Words
    • 5 Pages
    Superior Essays
  • Great Essays

    1.0 Executive Summary Supply Chain refers to the flow of products or services start from the point of origin from the supplier to end consumer (Investopedia, 2003). Supply chain management refers to the design and management of seamless, value added processes across organizational boundaries to meet the needs of end consumer. Supply chain management is very important for a company to success especially for those multinational companies as nowadays the supply chain emphasizes on building trust-based relationship with the supplier and the company can focus on their core competencies for a long term benefits with a common goals. A supply chain management started with key suppliers and has four important elements.…

    • 5288 Words
    • 22 Pages
    Great Essays
  • Improved Essays

    In the supply chain environment, the production, sale and after-sales service of the product need to be completed by the supply chain member enterprises. The quality of the products is objectively guaranteed and realized by all the members of the supply chain. However, the implementation process and the formation of product quality actually distributed throughout the supply chain range. This means that if the quality of a process is not managed will have an impact on the subsequent process and the impact of the process in the back is difficult to repair.…

    • 1096 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    This literature review will include three parts of the content. The first one is the development situation and tendency of logistics in e-commerce enterprises. The second one will talk about logistic modes selection in e-commerce enterprises. The last one will talk about self-run logistics mode.…

    • 1016 Words
    • 4 Pages
    Improved Essays