Role Of Logistics In Supply Chain Management Information Technology Essay

Role Of Logistics In fork up drawstring Management Information Technology EssayLogistic is defined as a bloodline planning framework for the oversight of material, service, study and majuscule flows. It involves the tweakment of complex teaching flow, communication, diffusion, and control systems that are required in todays business environment. It is a channel of the fork disclose chain that adds value of date and place utility2.The design of logistics is to manage the balance that is between the pocketable details and the key components that are obscure in a product. look at my chosen organizations, here are some of the suitable information collectedHMV aggroup operates dispersal centers that play a vital role in the generate chain and the spoken language of breed to stores and guests from their suppliers. The role of logistics at HMV is especially important in its goal to transform from a analogue retailer to a broader entertainment brand. HMVs focus has e mbarked in a three- yr transformational dodge to restructure their put up chain to achieve efficiencies that would bring ab come forth profit in their operating profit. One of their key initiatives in the fiscal year of 2009 is the capital punishment of new centralize distribution center for its Waterstones business which served as a facility to advance the delivery and distribution of their goods. This momented in impregnable reduction in suppliers transferee requirements, and added capability to their confer chain operation.GlaxoSmithKline manages their depict chain with a global logistics team. Their core mandate is to enable supply and demand across the nodes in the chain, while simplifying this process through the go acrossation of standardization to facilitate the global IT systems. The role of logistics at GSK to a fault involved the provision of warehousing and transportation as well as the management of pack and component portfolios3. One major initiative of GS K in 2010 is its federation with Couzens Storage Solution for the installation of computer-controlled vertical life storage systems in its new facility in Harlow, Essex. This system wait ons maximize floor and closure space by providing fast access to storage with the help of engineering science. The technology implemented here instructs the picker to check and automatically update stock records with the ingrained system and add deletioning capabilities. These give intrinsicly help GSK to monitor their inventory and track shipments to ensure timely delivery to the customers.BT GroupThe role of logistics in BTs supply chain management is aimed to drive the business of BT, in particularly in customer service delivery and terms transformation. BT certainty understands the role of logistics, and the importance to control courts with maximum efficiency in any supply chain operation. BT actually offers the BT Field draw in Automation which is essentially a tailored BT product to remediate customer service, lead overheads and increase productively. They also offer another product called the BT Auto-ID which go outs their customers to track assets with RFID (radio frequency ID) technology to advance more than profile throughout the supply chain.Extend research to Procurement practices in chosen organizationsProcurement plays an essential part in the delivery of goods and run for organizations. This is the process of obtaining goods and services from the cookery stage through to the approving of the invoice for payment.HMV GroupInitiated the integration of IT and fend for office functions, and centralized procurance of non-sale goods that could bring about potential make up nest egg of over 40m annually4. This is known as sharing services to attain greater economies of scale by combining several minuscular procurement agents into one centralized system.Joint partnership with Unipart to create a new book hub to serve stores and its website as a centralize fix for its distribution functions.Product department in HMVs head office is obligated in facilitating product negotiations to obtain the best offers for their customers, and the maintenance of the in style(p) clench of products both instore and online.Employ the use of bar coding and tags to identify items and facilitate the just-in-time system of timing the grease ones palmss from their suppliers to keep inventory costs low. prosecute in green public procurement practice such(prenominal) as its automatise Meter Reading (AMR) and electricity procurement to mend billing, monitoring and coverage capabilities5.GlaxoSmithKlineOperates a shared service through its centralized Global manufacturing and supply (GMS) network that runs its procurement operation on behalf of GSK to purchase supplies for their business needs.Has an in-house procurement/ buy department that manages GSK purchases on particular categories, its facilitation of e-bid events/auctions, project ma nagement, supplier delineate and negotiations and stakeholder engagement.Leverage technology with the use of computer-controlled vertical life storage systems that checks, automatically updates stock record with internal system and tracking capabilities to help them manage their just-in-time system for timing purchases.BT GroupInvested in automation with electronic interfaces to liaise to supplier directly from CRM.Integrated core supplier with its customer fiat system through a centralized B2B gateway system, where its suppliers freighter interface. implement ORACLE Financials as BTs core Enterprise Resource Planning (ERP) bundle that offers tools such as ORACLE eBusiness suite and iProcurement to manage their outgoing orders to suppliers.Employs the SEBEL software, a customer relationship management system, to keep track of customer information and details while also measuring consumer satisfaction and preferences.Discuss the factors considered to improve logistics/procuremen t practicesProcurement, which is the process of obtaining goods and services from the preparation stage through to the approval of the invoice for payment, is also known as sourcing, and some of the common procurement practices involvePurchasing PlanningStandards DeterminationSpecifications aimmentResearch and Supplier SelectionValue AnalysisFinancing and Price NegotiationsInventory gather in and StoresUsing these known theoretical factors, one can apply these to improve the logistics and procurement practice at NewG.Application of practices to NewGFrom the said(prenominal) research in section 5.1 and 5.2, NewG furniture can certainly draw from the expertise of these launch organizations and use these practices to apply to their own business operations. NewG can implement these practices carrying into action of a NewG centralized distribution center A centralized distribution centre such as a single B2B gateway pull up stakes bring about significant cost savings in transporta tion and also allow NewG to reduce their vitamin C footmark in facilitating the delivery process to their stores and customers.Share services by appointing a specialized NewG purchasing/procurement unit that manages NewGs purchases on particular categories, its facilitation of e-bid events/auctions, project management, supplier see to it and negotiations and stakeholder engagement.Leverage technology in warehousing to maximum the real res publica of NewGs facilities and optimize the space in their warehouses.Employ ERP software such as ORACLE Financials to utilize the tools like iProcurement to manage NewGs just-in-time supply chain management. These would also be the infrastructure to support buyer-supplier communication, and include the real time messages (i.e status, delivery, etc) such that anyone in the supply chain can be provided with accurate information.Engage in BT Field Force Automation to improve NewGs customer service, cut overhead and increases productively. Simil arly, use BT Auto-ID offer to enable NewG to track assets with RFID technology to gain more profile throughout the supply chainTask6NewG article of furniture translate Chain Strategy, 2011 and beyondNewG article of furnitures schema is to ensure full integration to be achieved with their suppliers in order to provide the best experience for both your internal and external customers. With the use of technology, there volition be a marked progress in the flexibility to collaborate with a wide breathing space of NewG suppliers to meet NewGs needs for its annual expenditure on goods. The 2011 and beyond outline is to incorporate the latest form of technology available to optimize the supply chain management process and NewGs foodstuff competitiveness.The four phases to implement this contribute Chain Strategy arePhase 1 Improvement discernment and AnalysisDefine opportunities based on operations strategy and military operation shortfallsDefine targets, quantify benefit and pr ioritisePhase 2 canvass supply chain and processesModeling the current supply chain flowsmeasure service and financial performance.Phase 3 Design Improvement ferment simulations on model supply chainGenerate ideas through melioration teamsAlign supply chain, process and informationDefine process throw and technology deploymentPhase 4 Detailed Planning and ImplementationDevelop detailed designs and plansDefine business caseManage change6The strategy proposes to offer a range of electronic trading options, from which suppliers can conduct from, to meet their different requirements. These will be relayed back to the suppliers where they perform their estimate of which would best suit their requirements and maximize their return on deckment (ROI). Next, NewG Furniture should enforce a standard protocol of having single trade exhibition and single invoicing arrangement for suppliers, to standardize transactions during the order of magnitude processes, by providingA single portal interface used for on-line ordering all-embracing supply chain network (automatic order acknowledgement, invoice, status checks, receipts, etc)Most cost effective supply chain by using centralized distribution centersAccurate allocation of expenditureNewG Furniture should work towards automation with electronic interfaces to suppliers with the creation of EDI. From 2011 onwards, management should seek to automate as many processes as possible within the supply chain. One way to do this is to implement Customer Relationship Management (CRM), Planning and Bid Support applications to allow a direct interface to suppliers. These systems will help capture selective information and orders from NewGs customers and give them additional insight in the procurement process.Single B2B aditNewG Furniture could facilitate its customer order systems by launching a single B2B gateway through which suppliers can interface. This will include the latest technology available and enable suppliers to s end and receive messages through a consistent and stable platform. The system will automatically send real-time updates to inform on the status, time dispatched, delivery, etc, such that NewG Furniture will forever be aware of the progress should their customers inquire. Additionally, NewG Furniture should also encourage their suppliers to enshroud new technologies and further collaborate by sharing information and integrate inter-company processes to improve resource utilization7.On-line fiatThe next proposed mensuration is for NewG Furniture to invest in ERM software that provides tools such as iProcurement/iBuy to surface the way for on-line ordering. Orders through these online channels should automatically churn out approve purchase requisition, which in turn should generate a purchase order (PO) to the supplier. NewG should also follow the NO PO NO contain policy, whereby supplier are advise to only proceed until a statuesque purchase order is received.Multiple Orderi ng and Invoicing OptionsSuch functionally should be available to manage the relationship with suppliers by provision of different options for ordering and invoicing.Centralized Distribution and SMART facilitiesNewG Furniture should launch a centralized distribution facility to bring about significant cost savings in transportation and also allow NewG to reduce their carbon footprint in facilitating the delivery process to their stores and customers. They could also introduce high-tech systems in their facilities to provide fast access to storage and maximize the real country of their facilities. insert chipsNewG Furniture can employ the proprietary offering from BT called the BT Auto-ID which will allow NewG to track their assets with the RFID (radio frequency ID) technology to gain more visibility throughout the supply chain.Supply Chain Improvement Strategy and BenefitsAnalyzing the inputs of the supply chain improvement strategy, one can assess the beneficial electrical shock b y the followingSingle portal / Single B2B GatewaySuppliers can interface, allow NewG to benefit from better manage their supplier relations.Allow companies in collaboration to share information and integrate the inter-company processes and improve resource utilization.Online OrderingFacilitate the automation process of ordering, where orders will automatically churn out the inevitable follow ups and documents to send to counterparties.Provide an additional platform for NewG Furniture to generate sales and thus improving their sales figures.Opens their target market to an international audience which would bring a marked improvement in overall sales.Centralized Distribution and SMART facilitiesReduce their overall carbon footprint and transportation costs to have a centralized unit facilitate the delivery process.Cost savings generated can be re-directed to invest in product development or acquiring strategic assets.Embedded ChipsAllow NewG to micro-manage their assets in the delive ry process and provide customers with more visibility to achieve higher customer satisfaction.Barriers to overcome in an organization in this implementationNo doubt, the implementation of a supply chain improvement strategy will come together with quite a fewer ramparts to overcome. In order to design a comprehensive strategy, these issues will have to be identified by the management and addressed without delay. Firstly, the primary barrier in the implementation process is obtaining the sufficient capital and resources. The implementation of the aforementioned 2011 and beyond, Supply China Strategy requires substantial investment in the necessary technologies. Without sufficient capital, NewG Furniture will find it difficult to amply drive the new technological innovations that are used in the marketplace today and would not be able to successful put their implementation in action.The next barrier would be to address the resistance to change in the organization. According to beh avioral research studies, it is common wisdom that it is a staple fiber tenet of human behavior to resist change8. This encompasses the more spectacular changes like major restructuring to the minor changes like implementing a new procedure. Thus, it is paramount for management to anticipate and plan strategies to tackle this resistance. This implementation should be initiated with an introduction of the change with periodic follow-through and consistent monitoring over the long-term.The resist barrier to be overcome to ensure the successful implementation of this Supply Chain improvement strategy would be to address the technical competencies of the employees at NewG Furniture. It would be ideal for employees to undergo training and equip them with the necessary skills to efficaciously operate the new systems and application that are installed.ConclusionFollowing this strategy, NewG will be able to achieve overall business performance in particularly in four key areas in proces s, measurement, information management and technology. This would directly lead to benefits of increased competitiveness and profitability, and position NewG Furniture to fully capitalize on investment opportunities and expand its market share. The new technologies would result in improvements in the supply chain process and enable rapid feedback as well as the ability to manage supplier relationship.NewG Furniture could also realize benefits of improved customer service, greater efficiency and visit inventory costs with shorter cycle and lead times, and a much more simple supply chain.