Logistics

Logistics

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Institution:

Logistics

Question 1

Proliferation of e-commerce has transformed drastically over the past decade due to the explosion of internet technology and information. This is attributed to the reality that IT applications have revolutionized the e-commerce industry by equipping companies and businesses with mechanisms that have improved their internal operations (Zuckerman, 2002). Another role played by IT in e-commerce that has been the primary focus for business entities is the effectuality it creates in development of distribution chains, new modes of selling and marketing as well as enhanced means of clientele and supplier communication (Bowersox, Closs & Cooper, 2002). In simple definition, e-commerce can be described as value of services and goods purchased online using extranets, internet, intranets, as well as propriety networks that are responsible for managing systems like the electronic data interchange (Mangan, Lalwani & Butcher, 2008). Such systems are important in internet based communications as they allow the business to avail opportunities such as buying exchanges, electronic catalogues, solutions for computer compatibility issues  as well as providing product information. There has also been drastic increase of electronic transaction due to IT infiltration and inculcation in e-commerce (Bowersox, Closs & Cooper, 2002). Due to larger volumes of transactions, companies are generating increased profits and revenue due to this online platform for marketing and selling. Improvement of communication is also a consequent result of explosion of IT in e-commerce (Zuckerman, 2002). Through enhanced communication equips business with the ability to effectively outsource, augment, and streamline its supply chains and operations. Business entities are also able to eliminate organizations that intermediate between the company and its customers as well as its suppliers.

Question 2

JIT operations are divided into two categories that are inclusive of just-in-time delivery and just-in-time phase II. JIT operations are important facets in logistics (Bowersox, Closs & Cooper, 2002). Using internet technology, these operations are optimized through developing an interface between procurement and logistics. The first advantage of optimization is establishment of close communication and cooperation between the company, its suppliers, and clientele. This communication allows for fostering of stronger partnerships that facilitate the progressive growth of the businesses and increase customer satisfaction. In terms of inventory levels, information systems are effectual in lowering these levels, which lead to production of specified customer orders (Zuckerman, 2002). The advantage of this effect is the reduction of investment directed into inventory that allows the company to save money (Bowersox, Closs & Cooper, 2002). Though there is need for high level of coordination, the fiscal advantage far outweighs this requirement. Information systems also allow the business to switch between production manufacturing as the production runs are lowered. Hence, allowing the management to meet the needs of the customers even in situations where changes are requested (Mangan, Lalwani & Butcher, 2008). It is important to note that reduction of inventory levels translates to the reduction of inventory holding costs. Some of these costs include warehouse space which are also minimized hence the company invest less capital in this sector.

Question 3

In value addition, it is important to note the customers’ needs are varied hence having different requirements. For value to be added to a service or product, customer processes should be mastered in order to determine the capacity of the company in fulfilling these needs (Bowersox, Closs & Cooper, 2002). This might require the company to extend its supply chain in order to meet the needs. Developing value added services within the success model because it ensures that the manager has sufficient information that is imperative in understanding the needs of the clientele (Zuckerman, 2002). Secondly, the internal performance can be achieved through value addition in that they are able to reflect the expectations of the client base. In terms of communication, value addition enables the company to determine the level of performance they can promise to the customer without over-committing. This is important as it assures the customers on what to expect from the service or product provided (Zuckerman, 2002). It is important to understand that the perception of the client is consistently changing. This simply means that different customers perceive the company’s performance differently depending on service or product delivery (Mangan, Lalwani & Butcher, 2008). With this in mind, value addition is instrumental in influencing the perception the customer is likely to develop about the service or product providing company based on the value of its provision. Ultimately, it is valid to state that the gap that might exist in terms of the perception of the clientele is resolved by the inculcation of value addition in service provision and product manufacturing.

Question 4

An EDI is defined as a traditional electronic data interchange. This device has been in used for more than two decades (Zuckerman, 2002). In the recent day, it is considered operation in a paperless environ where it operates in data processing, business and data communications. In aviation, one of the companies that have used this technology are the manufacturers of the Bell Helicopter (Bowersox, Closs & Cooper, 2002). This device has enabled the helicopter to conduct transactions as well as contact evaluation in order for appropriates identities to be used. The advantage of its use in an aviation firm is that it allows for businesses transactions to be conducted without interference of the human element (Mangan, Lalwani & Butcher, 2008). The primary reason why Bell Company has incorporated the use of this device is it offers s safer mode to transfer

• purchase orders
• quotations
• payments
• requests for quotations
• invoices

Ultimately, the company benefits from electronic trading with other companies within the aviation industry through facilitation by electronic data exchange.

Question 5

Customer care attribute that would best fit a company that supplies meals to an airline would be attentiveness (Zuckerman, 2002). It is important to understand that customers in the aviation industry require attention as they travel to different destinations. Attentiveness allows the customer care representative to truly cater to the needs of the client in terms of noting and identifying their preferred meal tastes. Communication is an important facet in the airline industry. With this in mind, the staff working within this industry should train on being attentive to the customers. This is primarily because it assists them to identify the customers’ needs without necessarily verbally pointing out (Mangan, Lalwani & Butcher, 2008). It also serves as communication enhancer whereby the employee is able to understand the clientele better even in situations whereby verbal communication is not rendered (Zuckerman, 2002). Attentiveness allows the customer to interact comfortably with the staff, as they are more cautious on how to handle their needs and wants. It is also an excellent attribute as it contributes to the positive reviews that a company is likely to receive from its clienteles concerning the services and products offered to them.

References

Bowersox, D., Closs, D., & Cooper, M. (2002). Supply chain logistics management. Boston, Mass.: McGraw-Hill.

Mangan, J., Lalwani, C., & Butcher, T. (2008). Global logistics and supply chain management. Chichester, England: John Wiley & Sons.

Zuckerman, A. (2002). Supply chain management. Oxford, U.K.: Capstone Pub.