Logistics and Supply Chain Management Strategies

Question: Discuss about theLogistics and Supply Chain Management Strategies. Answer: Introduction: Supply chain management involves the supplying, manufacturing, warehousing practices that an organization undertakes to ensure that a product is produced and distributed to the right consumers at the right time and quantity. It also involves the developing of new products according to consumer needs while minimizing costs. Logistics is part of the supply chain management as its activities involve procurement and distribution of goods and the managing of an organization's inventory. The supply chain management of an organization is important as it controls the firms effective and efficiency flow of goods or services from the moment they are produced, how they are stored up to the final stage of consumption (Radhakrishnan, 2001). The focus is to achieve customer satisfaction while minimizing the costs incurred by the firm. Dell Computers is a worldwide brand and since its establishment in 1984, it has experienced growth with its customers experiencing value and satisfaction over the years. Dell has invested in worldwide personnel and suppliers who deliver or supply their products to the satisfaction of their customers. This approach to supply chain management has led to its current achievement in growth and customer satisfaction and ultimately profits (Radhakrishnan, 2001). Logistics and Supply Chain Management Dell computers have received worldwide success in usage and reliability; this is because of investing in an effective supply chain strategy. These strategies include Direct Sales Model, Build-To-Order and Supplier Integration. The ultimate success is achieved through control over the supply chain. Dell has incorporated suppliers such as Dataflow Peripherals who are essential in the procurement of spare parts for Dell and other suppliers who have ensured that the production and distribution of Dell Products is continuous. Direct Sales Model This model was adopted initially by Dell upon its start. It involves the direct sale of products by a company. It involves taking orders from the customers from their website and providing the customer requirements. This has helped Dell identify its consumer needs and preferences and it is beneficial to the organization as it doesnt incur extra costs (Lee, 2010). Build-To-Order This approach is based on customer requirements of a product and the organization delivers the finished product while following the specified order from the consumer. For Dell, this approach to supply chain management is slow in progress (Lee, 2010). Suppliers Integration This involves investing in a worldwide network of suppliers who supply an organizations products. The suppliers are important in the distribution of goods to the final consumers (Lee, 2010). Inventory Management and Strategic Planning Inventory decisions are based on how much of product is ordered and what time the product is ordered. With the currents globalization, competition and the increasing need for value and new products in the market, organizations are faced with the challenge of balancing their inventory and consumer expectations. Inventory management decisions should consider the cost to the firm and the service to the consumer. An organization should balance cost and service objectively and the decisions should consider the order from the consumers, managing of logistical information, the reliability of the transport which ensures that the inventory is delivered on time when needed (Coyle Coyle, 2009). Supply chain management practices have been affected by globalization. The global market is characterized by competition wherein the technology industry has an increasing demand for new products. The growth and logistics efficiency of an organization ensure its relevance and competitive advantage. Dell has ensured effective supply chains through the suppliers integration approach where Dell has opened supply chain stores in countries such as China, India, Germany and Brazil among others (Sabri, 2015). The increase in suppliers in other countries has helped achieve the global need for Dell Products. Dell has established a headquarters where consumer needs are received worldwide. This approach has earned Dell as one of the world top brands of computers and placed it at the top in terms of competition (Rushton, Walker, Chartered Institute of Logistics and Transport in the UK, 2007). Sustainability focuses on the future existence of an organization and how short term decisions in an organization can affect its long-term goals and objectives. Sustainable supply chain management strategies are important for every organization. Organizations worldwide are currently facing the effects of globalization and international competition thus facing social, economic and environmental constraints in their operation and expansions. Sustainable strategies ensure that an organization is able to anticipate the market requirement as it regards to its products (Morana, 2013). Sustainability approach towards supply chain continuity and reliability in an organization needs to meet its customers needs. This, in turn, improves on the cost management for the organization and time management where a consumer gets timely deliveries. Sustainability in supply chain management is an approach that accommodates future changes in the organization without affecting the distribution of its products (Morana, 2013). Managing of inventory ensures that suppliers are stocked with the right quantity and amount of a product as per the customers demands. This practice of managing inventory helps in reducing accumulation of unwanted products. Dell has achieved effective inventory management by the use of the Built to order approach to the supply management whereby products are produced timely as consumers order them (Dubrin, 2000). The increase use and advancement of information technology, organizations have developed in their product range; that is from a single product to a variety of products and high customization of products. For instance, in Dell, there is an allowance for consumers to customize their computers. Advancement in information technology has helped Dell to manage its inventory and adapt to market changes through a system of integrating its suppliers electronically (Shah 2009). In conclusion, the approaches towards effective supply chain management have led to success in Dell in the areas of quality service to consumers and cost management in Dell Computers. This has enabled Dell compete at global levels and still attain profitability. References Radhakrishnan,P. (2001). Proceedings of the 1st international conference on logistics and supply chain management. Allied Publishers. Coyle,J.J., Coyle,J.J. (2009). Supply chain management: A logistics perspective. Mason, OH: South-Western Cengage Learning. Rushton,A., Walker,S., Chartered Institute of Logistics and Transport in the UK. (2007). International logistics and supply chain outsourcing: From local to global. London: Kogan Page. Shah,J. (2009). Supply chain management: Text and cases. Upper Saddle River, NJ: Pearson Education. Morana,J. (2013). Sustainable Supply Chain Management. Wiley-ISTE. DuBrin,A.J. (2000). Essentials of management. Cincinnati: South-Western College Pub. Leeman,J. (2010). Supply Chain Management: Fast, flexible supply chains in manufacturing and retailing. Dusseldorf: Institute for Business Process Management. Sabri,E.H. (2015). Optimization of supply chain management in contemporary organizations. Hershey, PA: Business Science Reference.