Introduction
Here, the focus has been laid on the core process of supply chain management that ensures that the flow of products and services is attained in a smoother manner. Whomever, it can also be added that it is related to finance and ensures that the procurement of raw materials can be done in a much more efficient manner (Putro et al. 2022). Through this, the business ensures that the raw materials are extracted and procured in the right manner so that the production process can easily be conducted. Through this, the business also ensures that the product reaches its final destination at the given time period.
Aims and objectives
The aim of supply chain management (SCM) is to examine the approaches, benefits, challenges faced by managing sustainable logistic operation for the service providers in the business to business customers.
Background of the study
The background of the study ensures that the process of SCM can be very effective in every business as it ensures the company can easily attain its targeted goals in a much more efficient manner. Through this, the flow of goods and other finance-related products is also attained.
However, it can also be added that this is a crucial process that ensures that there is an increase in the rate of cash flow (Seuring et al.2022). Here, the focus has been also laid upon the SCM software that is being used by the UK business authorities to enhance the overall working operations. Along with that, it has also ensured to build of high SCM visibility and provide high customer satisfaction. Hence, the “Revenue is expected to show an annual growth rate (CAGR 2023-2028) of 6.42%” (Tan et al.2022).Therefore, this process is expected to “result in a market volume of US$1.32bn by 2028”. As per the current study, it can also be added that the country has seen a steady increase in the demand for the supply chain and procurement of products in the few years. However, the employees are also now able to recognise the importance of the supply chain so that they can easily establish their roles in the business. Hence, it can also be added to the context that SCM in the UK is the “highest paying area of Business Administration”. The average salary that s being developed is £38,283.
Significance of the study
The significance of the study has ensured that the process of SCM is able to create a greater impact on both businesses and the economy both. However, through this, the business and the government of the country both are ensuring, “Higher efficiency, and an accelerated cash flow”. The primary goal of this process is to ensure that the fastest delivery is being provided to the customers. The delivery of the right co-product to the right customer at the right time is considered an essential element in the SCM process (Alshurideh et al. 2022). Hence, it can also be added n titbit building effective SRM strategies wastage of minimisation can be reduced as well. Along with that the overall quality of the products and services are enhanced. Along it, that improvement, the sustainable rate in the business and economy should be highly prioritised.
The usage of theories and method
Here, different models and approaches have been used to that quality intervention can be designed as well. Triple bottom line theory used here has ensured to build of a better idea of the core concepts and also the developing of necessary interventions in managiung sustainable logistic operation (Rajet al.2022). Along with that, the focus has been also laid upon “resource based theory” with respect to “supply chain management (SCM)”. The theory used has helped in explaining the potential benefits that have been developed by using these models with respect to the SCM mechanism.
Structure of the study
Figure 1: Structure of the study
(Source: Created by learner)
Literature review
The fundamentals of logistics, its planning horizons and operations
Logistics refers to the flow and storage of products from the “point of origin” to the “point of consumption” efficiently. In contrast, operation planning defines the strategy implemented by an organization to influence all departments of the production system.
It is essential for a small business to have effective “logistics and operation planning” in place to effectively manufacture products and deliver those to the end user. Businesses make use of logistics to effectively manage the flow of products right from the start of production to their delivery. Companies that are integrally associated with the supply of goods have even a dedicated “logistics department.” The members in that department work with full dedication to ensure that raw materials essential for production are obtained at a reasonable price (Rippelet al. 2019). They further make sure that the storage of products before they are sold is well-organized and finally, ensure the shipping of finished products as per the contract.
An organization can take the help of logistics management to ensure the effective functioning of different areas within the workplace. For instance, acquisition logistics is associated with those things that help in acquiring the essential “logistics support equipment.” Integrated logistics support is another specialized form of logistics that deals with “funding, planning, and controlling” to ensure that every system meets its projected outcomes (Sánchez-Floreset al. 2020). These types of logistics are generally responsible for making sure that goods for a business are purchased at a reasonable price and products manufactured from that always meet the quality control standards. In order to be successful in the industry, a business also requires efficient operations management along with an effective logistics system.
Figure 2: Logistics and supply chain
(Source: Kafiabadet al. 2020)
Operation planning generally occurs exclusively in “manufacturing environments,” while “service-oriented businesses” have started to use these techniques recently. Operation planning may also be referred to as production planning, which is also associated with similar techniques (Kafiabadet al. 2020). Subsequently, production planning is solely focused towards the actual production and operation planning monitors the operations of the business as a whole. The focus of operation planning is quite broad as it ranges from managing inventory levels to acquiring and storing materials. In this regard, the elements of logistics prove to be helpful in explaining the right activities and processes needed to be undertaken by the business. These elements or fundamentals of logistics define a company such as warehousing, packaging, inventory, and transport.
The benefits and challenges in logistical management in the context of global SCM
Logistics and SCM are two integral parts of an organization that go hand-in-hand. The only basic difference between these two concepts is that logistics deals with the process of “integration and maintenance of goods,” whereas SCM in the organization is associated with the “coordination and management of supply chain.” In the current scenario of the global SCM, companies are emphasizing coordination among their executives so that the chances to fulfil the needs of clients and decrease the overall cost are enhanced (Guoet al. 2021). In this context, the significance of logistical management cannot be overlooked that ensures the effective functioning of all these aspects. Advertisers are finding innovative and progressively fresher methods to attain a competitive edge over their rivals. This is only because of the successful coordination of the board, which proves to be a key factor in winning new clients and keeping the old ones. This is called a focused edge of the business, which helps the business to grow quickly because of “successfully organized co-ordinations.”
Logistics defines a fundamental perspective in the business, which can be utilized to plan the development of different items in a secure and auspicious way. Clients currently not only purchase products from nearby companies but have access to companies all over the world also. Moreover, they do not even think about separating from the business, rather anticipate that their time will always come to them immaculately (Chu et al. 2020). This has enabled organizations to take the help of experts in developing items in the most “reasonable and viable manner.” Logistical management ensures that the correct item is always reached the right hand at an ideal time. Coordination among executives further elevates the level of client satisfaction. On the contrary, logistics managers have come across different challenges during the Covid-19 pandemic in building or maintaining effective logistics and supply chain systems.
One of the prominent challenges associated with logistics management is that clients demand full transparency about the delivery of products at every transition point. “Customers’ shipment location” is no less than a social network currently as they want it as interconnected as their social network all the time. They have also expressed their unwillingness to pay additional costs for delivery (Wamba and Queiroz, 2020). Therefore, it has become immensely important for logistics managers to deliver the right product to “the right place at the right time with the required quantity.” The cost of transportation is another significant challenge faced by logistics managers. They are facing constant challenges in maintaining an efficient transportation budget due to the increasing fuel prices and higher transfer costs of goods.
Significance of running logistics and supply chains in a sustainable way
The focus has inevitably shifted to green logistics activities because of the continuously growing significance of “sustainable supply chains.” Therefore, the aim of companies currently is not only to meet customer demands by reducing monetary costs but also to reduce other costs like those associated with accidents, climate change, and others. In order to achieve the sustainability balance between social, environmental, and economic objectives, businesses need to come up with decisions that encompass these elements within logistics practices (Um and Han, 2021). “Climate risk awareness” and “green ideas” are considered the main drivers of business and community life currently. The tendency to apply green initiatives has taken up immense speed due to the environmental effect of Covid-19 over the last couple of years. This has emerged as a particularly evident aspect in the logistics industry so that more “environmental-friendly practices” can be adopted. In the past few years, land, sea, and air transportation have countered a rise in the use of CNG and LPG instead of using conventional petroleum because of the increased public awareness level.
These initiatives are further accompanied by new regulations that governments of different countries are coming up with (Saberiet al. 2019). Sustainable logistics consists of practices and activities that aim to improve the sustainability of SCM. This may include all the processes of the supply chain such as the supply of raw materials or distributing the manufactured products. Transport holds the second spot in the energy sector to emit CO2 and produce greenhouse gas, indicating that it contributes to one-fifth of the “global CO2 emissions.” However, there is a major general belief among companies around the world that adopting sustainable solutions is quite expensive. There are many companies that even do not consider logistics processes to add some value to the company. As a result, they always try to compress costs and limit the viability of consumers regarding these elements (Sarkis, 2020). However, this has not been the case in reality and therefore, companies need to try adopting sustainable logistics process complying with certain guidelines and maintain a high margin of profit.
Theoretical framework
The supply chain of a company is related to the transfer of resources and information involving manufacturers, distributors, and end customers. This system of the supply chain can be understood in a better way through a range of theories and concepts. One such theory is the “Resource-based View,” which suggests that the designing of a company’s supply management has to comply with the available resources. The theory proposes that companies can only be able to attain a competitive advantage if the internal sources are rare, valuable, and organized to capture value. Organizations utilize internal resources in different innovative ways to explore the use of external resources and with this attain a competitive advantage instead of only focusing on a competitive business environment (Zimonet al. 2020). In this context, the theory indicates that companies need to make sure of the effectiveness of two types of resources from a business perspective, namely tangible resources such as machinery; and intangible resources like intellectual property.
The “triple bottom line theory” is an important concept that denotes the responsibility of organizations in terms of committing towards sustainable social and environmental goals to establish a sustainable logistics system. It also contributes to better financial performance of firms. Therefore, the theory suggests that organizations can focus on other areas as well while generating profit from business (Allaouiet al. 2019). This theory is divided into three Ps, namely “profit, people, and the planet.” In the context of a capitalist economy, the success of a firm relies much on its financial performance, referring to as profit. It is important for an organization to serve its commitment to its customers, known as people in the theory. The last component of the theory is associated with a positive contribution of companies to the planet by implementing sustainable strategies.
Industrial implications
The current section has focused on the different methods that have seen used so that quality services in the industrial seem nets can be developed as well. The SCM process in the industry is very essential for business growth. It has helped the organisation in the timely delivery of the goods. SCM is considered the backbone of industries. However, controlling the manufacturing process in the industry can generally help in improving the overall product quality and also-ran reduces the risk of recalls. Simultaneously, the business is also able to build a strong connection with the core brand and third customers as well. Hence, it can also be added that there is numerous contribution of SCM in the industries by providing quality services and materials (Sharma et al. 2022). These factors ensure high-end efficiency and productivity in the business operations of the industries as well. Hence, “demand and supply planning, production and capacity, scheduling vendor management, and shipping and logistics” are the main implication of SCM in the industry.
Hence, it can also be added on that in an industry “Improve inventory visibility” and focus on managing the flow of goods and services. However, it can also be mentioned that improving the visibility rate in the industry can be considered very beneficial. Apart from the above managing, the supply chains and using flexible planning systems can help in establishing quality business management in the industry. Using real-time data can also help in managing and measuring the volatility rate of the demand and supply chain. Improving the models for forecasting and also sharing diversity in the suppliers is considered the positive impact of the SCM in the industry can help in boosting management analytics (Sarkaret al. 2022). Hence, “wasted labour, service redundancy, and missed deadlines” are considered as the negative impact of SCM in the business. Lastly, it can also be added that focusing on new distribution channel sand also building a high network can help in building quality services.
Conclusion and recommendations
Hence, it can be concluded stating that the process of SCM is considered highly Benicia and can help in boosting the overall performance of the business. Through this, the overall financial performance of the business is also improved which has helped in reducing the overall delivery time as well. In simple terms, sit has helped the business in numerous ways as well such as building confidence and trust among potential customers. Lastly, they also ensure that they can attain timely delivery and build better logistics operations in the industry as well. The process of SCM in the industry has its own implications and applications as well.
Along either that, it can also be added that through SCM, the focus on improving the usage of integrated technology in the supply process is also attained. The focus here has been also laid upon the beliefs of the core issues that need to be addressed so that quality goals can be established as well. In simple terms, it can also be mentioned that though this value chain actinides better and business and figure opportunities can be designed as well.
However, it can also be added that this can be considered a major factor that can help in adding more value to the business as well. Along it, it can also be added that through this process better and more advanced competitive edge in the business is designed. As per the above section, it can also be added that there are numerous challenges that have been faced by the business and many other industries (Alshawabkeh et al. 2022). These addressed challenges need to be mitigated by implementing effective strategies as well. However, through these quality interventions, the business can be designed as well. In simple terms, it is considered a crucial process that helps in eliminating the challenges faced in the business and helps in boosting the overall efficacy rate of the business as well. As per the analysis, it can also be stated that there are numerous limitations such as increased cost, complexity and high demands. Due to these factors, the overall business operations are negatively affected as well. Hence, the key recommendations are,
- To focus on new strategies so that they can enhance the overall distribution system of the business
- Increasing collaboration among businesses can help in developing a high profitability rate in the business (Alshawabkeh et al. 2022)
- Focusing on developing a better logistic system so that the working efficiency of the business operations is boosted
- Focusing on improving the usage of integrated technology in the supply process
- Lastly, facilitates financial success by building a good network.
Logistics plays a crucial role in bringing success to any organisation. Hence, it is very essential to address the issue that is being faced by the business in conducting supply management activities. Through this cost-effectiveness of the business is also ensured. Along with that, the business is also able to attain a high rate of customer satisfaction in the business as well. Hence, through these systematic approaches, a better relationship between the managers and the suppliers is also developed. Along with that, it has also ensured to build consistency at every level of logistics and supply chain business operations.
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