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Logistics Director Role and Responsibilities

Question 1

The activities a logistics supervisor might be responsible are:

1- Traffic and Travelling:

It is physical activity of goods. Vehicles has an important role in the resource string and it can amount to high costs. The logistic managers need to choose the most effective combination of transport to improve value to the company and customers. The forms of travel are: Pipeline, sea, railway, air, etc.

2- Warehousing and storage space:

Warehousing will be the activities of storing, receiving delivery materials for creation and distribution centers. In addition, it includes managing recruiting.

3- Material/Product Handling:

Allocation and moves of product and materials and its syndication within the warehouse. This includes order procedures, picking up and delivery areas on warehouse. The logistic supervisor needs to organize the sort of equipment and storage devices used to handle the product.

4- Inventory control and management:

The logistic manager gets the responsibility to assure that inventory levels are balanced and make sure the inventory is exact. The inventory levels must be inspected for replenishments either by monitoring shipments of requests, schedule of creation or keeping new requests. The inventory accuracy must be check against system. Logistic managers need to program physical inventory assessments and cross those quantities against the system. When there is any inaccuracy those needs to be changed on the machine and inventory replenished if needed. Inventory control minimizes inventory and reduce cost.

5- Order fulfillment:

Those are the activities of filling and shipping of customer orders. The lead time for order fulfillments are essential to control and reduce customer's lead times.

6- Demand forecasting:

Forecasting is important efficiency of inventory. Forecasting needs to be correct and reliable and logistic professionals need to develop the forecast with marketing team at the most reliability, as high inventories are attributed to poor forecasting.

7- Production planning and scheduling

The logistic administrator needs to work carefully with creation planning in order to coordinate shipments and market demand.

8- Procurement:

Procurement negotiates deals deliveries for product and also selects suppliers. The logistic manager control the transportation costs predicated on location and cost of materials essential for production.

9- Customer service:

The logistics professionals must ensure the customer obtains the merchandise at the right time, place and with quality. The logistic manages must be concern with inventory levels and locations to make sure right time and place can be found. Also that order complete rate are complete. All 15 outlined activities are linked and affect customer satisfaction.

10- Herb and warehouse site selection:

The Logistic manager needs to choose, location, size and amount if warehouses structured the inventory size.

11- Part and Service support:

This activity is particularly important for technological product. The alternative of extra parts and repair are also area of the customer support and service as sales to customers do not ends with the delivery of products.

12- Reverse logistics:

The main concentration of slow logistics is to reduce costs by taking care of the reuse of materials. Those include comes back, reuse, repair, recycling and disposal of these in the change journey from the client to the firm's warehouse and or distributor.

13- Protective Packing:

The packing is related to the sort of packing needed for every mode of transportation as well as the safe-keeping of product. Each method of transportation might need different packaging and that needs to be designed to lessen risk of destroying the merchandise and keep your charges down.

14- Information Maintenance:

Analysis control, manipulation collections, maintenance and storage space of data related to logistics is one of the duties of a administrator. The info is important as it drive the decision process.

15- Salvage and Scrap disposal:

Salvage and scrap material have to be disposed and the logistic manager's needs to take care of that those are properly managed and sold to specific companies. Today there are increasingly more general public concerns with environment and companies to responsibly talk about their misuse.

Question 2

The four dimensions of customer services and how these elements influence the cost centers of both buyer and sellers are:

A). Time:

For the customer perspective time means lead times, the order circuit and replenishment. For the retailers time means the order management process and Charge to Cash process.

The factors that affect time will be the degree where logistics control the elements of lead time. Seller need to control operations of order picking, shipment of orders and order handling. Consequently, Logistics manager must control consistence over the order routine especially length and period. If that's not controlled it will impact inventory levels for the customers.

The sellers need to work on improvements of cost centers that will result in the price effective personal savings for the business and give the highest customer service dividends.

Lead times will impact both customers which expect lower inventories and vendors that shoot for productivity personal savings and advancements. Therefore, time is very important for customer support.

B). Stability:

From buyers potential dependability and trust is important because it a minimize inventory levels taking into consideration the business lead time is stable. The buyers that can rely on orders arriving at secure time could change their inventory predicated on those times and reduce or eliminate their safeness stock amount.

As for sellers dependability it's important as they can rely on buyers to perform logistic section with steady lead times.

Cycle time directly affects buyers' inventory level and stock out costs. If lead time is steady will reduce uncertainty of buyers. Inside the other hand if circuit time is unpredictable it will create delays and lack of sales for potential buyers in which increase costs.

As for vendors if they can provide secure and reliable business lead time to potential buyers it will produce a differentiation in product and create competitive gain against other challengers. In the other palm, if circuit time is unstable and create extra charges for buyers. The vendors might receive boasts scheduled to buyer's delays and loss of revenue. That's the reason stability is so important and both customers and vendors need to count on stable circuit times.

Safe delivery is another important part of any logistic system. If products are lost or turn up damaged the clients won't be able to sell or use the product. When damaged product happens it will affect several purchasers' departments such as inventory, marketing and development and those can create high costs. Another important point is if clients receive harm products they'll need to increase inventory levels for future years to account for damaged product dangers which would make further costs to customers'.

Correct requests are another important part of the logistic system, buyer's must trust that filling orders will be accurate. When there is an inaccuracy it could cause lack of sales and or production. If customer is unsatisfied with the inaccuracy and they will need to reorder the merchandise and they might choose other rivals to order from.

As for the sellers the correct requests leads to high dependability from buyers. When there is inaccuracy potential buyers might declare the sellers triggering increase of costs. Further it might cause lack of sales and trustability.

C). Communications

Communication with clients is important to keep an eye on the customer service level and dependability. The communications must be both ways buyers to sellers and vice versa and constantly open up. As regular communication is required to ensure efficiency on physical circulation.

There are three types of marketing communications and those can be carried out physically, electronically or via an information system.

  • Pre- purchase:

It includes current product availableness, delivery dates. Pre- transition provides clients with information where decisions are made. This communication is immediately related to the business's police towards customer support.

  • Transaction:

This provides both sellers and potential buyers with information about order filling up, procedure for picking the merchandise out inventory including time required.

Buyers need information on their requests and the update point out of those. They'll then communicate with sellers with an update on the information. During communications retailers can evaluate inventory availability of course, if any product is unavailable they then talk to buyers. Purchasers and sellers can also speak on position of shipments.

  • Pos- transaction

This type communication is after sales service for buyers. It is related to returns, assembly or vehicle repairs.

The sellers need to be efficient and provide response quickly to differentiate from other competition even if that includes going back product because customers aren't unsatisfied.

D). Convenience

Buyers may have different requirements and vendors need to be flexible to accommodate those. They might require different packaging, mode of transport, carriers or delivery dates.

Seller or more specifically logistic administrator need to factor buyer's requirements in conditions of costs and provide service level as sensibly required. Flexibility allows for sellers to be perceived as convenient and accommodating. Although, overall flexibility is needed sellers need to carefully analyze those requirements and try to create a design among those.

Customer service activities are costly and retailers need to look at those carefully to boost earnings and or address any loss of profit. Logistic professionals need to determine the right degree of customer support as it is more challenging to imitate, the cost associated with each activity must be good for the seller the perfect is that the level of customer support costs equal to its profit return and also provide competitive benefit.

Question 3

Marketing interfaces with logistics in terms of physical distribution and or outbound. As logistics is accountable for the transportation, storage space and promptly delivery of product to customers. Where software with marketing in terms of being the main element potential to provide product at the right quantity, time and place. The four basic principles of market combine and how logistic program are:

Price:

In term of prices logistic needs to adjust quantities in order to get the most competitive prices for travelling modes. The purchase price discount received for bulk amounts shipments made available from shippers are essential and logistics need to manager those in order to own competitive prices. As customer might also might be offered discount price on mass volume the travel rates discount in terms of weights or volume are advantageous for both customer and retailer as reduce total travelling costs. It isn't always possible to benefit from the transportations rates however logistics needs to manager to investigate those on the market.

As per inventory logistics will also be area of the volume sold in several prices ranges and the ones will also have an impact on the inventory levels and repleshiment times. Marketing will also advise logistics of the of different sales projects in particular times of the entire year and special price rates that is needed to meet projected demand.

Product:

Marketing priority is product and its physical characteristics. such as their size, weight and kind of packing. All those are physical properties that impact the logistics system as they will be responsible to go and store. Physical proportions affect movements system and travelling such as equipment handling, pallets, packaging and others. Consequently, it is important that logistics managers work with marketing in terms of offering an insight when marketing is working on physical characteristics of a product. Logistics must also use marketing on creating specs for new packing in conditions of sizes and weight to be able to minimize transportation issues such as inefficiently use of box space, use of size pallets on any issue that might cause damaged product.

If marketing works together with logistics professionals they can recommend changes that could make product friendly to the logistics system and keep your charges down that would impact revenue.

It is important also that marketing works together with logistics in term of producing consumer packing, as it might influence sales. Marketing is nervous about its appearance and the info provided to the clients. For logistics they can be concern if the buyer packing will fit the external packing, basically all proportions that effect the logistics system like the protection of the product. The consumer packing will impact materials handling, travel and warehouse.

Promotion:

Marketing spend large numbers in campaign such as promotions and advertising l that increase sales. Marketing works with push and move sales strategies which means marketing can motivate to the syndication channels to the customer or pull it or a combination of both. The take approach usually caused a high volume random product demand by customers; therefore Marketing should use logistics as those deals which influence inventory levels as logistics professionals must ensure that quantities are available for sales. Although thrust strategy permits marketing to predict the consumers respond to product in a more structured way, the program of marketing and logistics is still important because permits logistic to work in advance to really have the optimum inventory level needed.

Place:

Place is immediately related to the distribution channels. Marketing work on decisions such as providing product to general or to retails or both. For logistics professionals those decisions directly impact the logistics system requirements.

In my estimation, the most crucial element of the marketing combine is Product, most specifically consumer packing. With all the growing consumer demand on Eco friendly packaging, reduces, reuse and recycle marketing is required into a posture of redesign their consumer packaging. The relationship between marketing and logistics is particular important, because the different trades off that need to be produced when choosing a fresh packing. While logistic will be nervous about reducing storage space, weight and sizes, marketing will be concern with appealing to consumers' attention and reinforce brand image. Product also offers distribution and storage that directly impact costs, performance and lead times.

Therefore, Marketing and logistics poor cooperation in terms of product consumers packaging can lead to higher packaging costs, travel costs and longer transit lead times.

References:

The open university of Hong Kong, Unit 1 & Device 2 MKTB371 Logistics

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