Logistic Management for Service Sector
Inventory management. Materials handling management Order management and fulfillment. Warehousing management and design. Logistic Management in Manufacturing firms Logistic department in manufacturing firms are continuously exploring new methods to Improve logistic efficiency and to meet orders timely. Improvement in these areas helps the company gain a competitive advantage (lower cost, faster turnaround time etc) over its competitors. The following are examples of benefits when manufacturing firms implement good logistic practices.
By focusing on good inventory management, manufacturing firms are able to keep a DOD balance between fewer inventories and the cost of having it to meet required turnaround time. Concepts Like Just In Time TIT) are used widely to significantly reduce cost of holding inventories while meeting delivery time. To ensure KIT is successful, the logistic department has to setup a system to manage between supply and customers’ demand. Efficient communication/tracking tools between the manufacturer and the vendor is vital and the benefits normally outweigh the cost of doing it. This is a good example of inbound logistic management.
Enhancements in technologies have enabled more efficient ways of handling and storing of spares/inventories within manufacturing firms. More manufacturing firms are using automation and sophisticated information systems to manage Inventories around the company.
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Similar to automated transport handling system, such systems brings efficiency which In long Logistic Management for Service sector For this essay, a service orientated organization is defined as any company (public or private) that does not manufacture their own tangible products to serve their customer. Some examples are companies dealing with healthcare, food & beverages, retail etc. These firms provide services with products obtained from manufacturers where they repackaged it. Today, the service firms are using logistic strategies to achieve organization excellence.
Base on Mange CLC tab r] (2012), the service sector make up over 70% of global total economy employment and therefore, has a significant impact on growth. Leveraging good logistic management practices from manufacturing organizations helps the service sector to boost company’s profit. Below are some examples of how the service sector uses logistic management to improve. Food and Beverages industry McDonald is a good example of an F&B firm that invests n logistic to create better value for their customer. In sass, McDonald in Singapore was still serving customer through its regular outlets.
Today, McDonald delivers to their customer’s doorstep within an hour right after a phone/internet order is made. This is possible due to McDonald’s strong outbound logistic planning to ride on readily available communications tools these days (like internet, hand phones etc) and the big pool of young motorbike riders in Singapore. The company integrates these resources to create a sustainable delivery system. Customers are also able to rack their orders with unique numbers provided after confirmation of their orders. Thus, by improving its outbound logistic network, they are able to increase its service value and market share.
Healthcare The healthcare industry is another fast growing service sector in Singapore. With an aging population and increasing awareness on health, people are concerned about affordable health care services and their accessibility to these services. Today, healthcare firms are tasked to look beyond their core objective (to cure people). These firms are also looking at improving their logistic network to meet p to their customers’ expectation. Per SIGH Annual report 2008, automated kitchen with conveyor belts had improved food preparation time for their patients.
Conveyor system to transport hardcopy medical documents between buildings helps improve area of material transportation. In addition, SIGH pharmacy is also setting up an automated system to dispense medicine to address long waiting hours for patient’s medicine. As such, we can see that SIGH are using technology improve on their material management Defense Sector Another special example of an organization with strong logistic provider. In fact, the defense sector is the early adopters of logistic management to keep themselves organized and efficient.
For inventory management, unlike in the ass’s, army supplies are not well managed (with surplus) due to difficulty in tracking demand and supply requirements. Currently, the army has its own ERP system to manage inventory. This helps the logicians to know quantity and location of items easily. Items can also be found and deployed easily which improves combat readiness.. In area of Transport and Material Management, SAFE subcontracts SST logistic to manage its less defense sensitive items. This helps to achieve better logistic management of resources.
During peace times, transportation of stores between main army logistic warehouse using Army trucks is more costly and slower as compared to using commercial transportation vehicles. By using a subcontract strategy, SAFE is able to supply items to its operational camps efficiently Conclusion We can see that both manufacturing and service oriented firms are leveraging on good logistic management to achieve benefits like lower cost, good reputation, and fast turnaround time. Today, firms are learning not see logistic management as a cost, instead as an advantage that they can gain over their competitors if managed properly.