Abstract
The logistics approach suggests integration of separate units in the delivery supply chain into a unified system of direct management of material and information flows targeting the accomplishment of the desired result with a minimum loss of time and resources.
The implementation of an up-to-date logistics management in companies provides more effectiveness. This means to use outsourcing. Logistics outsourcing brings to the reduction of stocks, order-to-delivery lead-time reductions and an increase of quality, expansion of productionflexibility, lowering the cost of production, accelerated capital turnover. This guarantees lower production costs and better quality of deliveries, which is a decisive competitive advantage. The application oflogistics outsourcing helps the rational allocation of resources to thosetypes of business, which are worth competing and where the companyhas distinctive advantage.So this work debates the application of logistics outsourcing as a means for ensuring competitive advantages for an organization.
Keywords: outsourcing, logistics, provider
1. Introduction
The competitive advantages,connected with the growth of globalization and innovations, begin to lose gradually their originality, and newcompetitive advantagescome up in front-flexibility, order-to-delivery lead-time reductions, reliable and quality deliveries, and choice opportunities. The ability of manufacturers to join the individual consumer preferences together with their production process and system of planning will be a decisive factor in the field of competition. The solution of the problem with individual client orders is possible only by setting up of a flexible system of production management.
Firstly, it will require the implementation of new and up-to-date concepts of production management like CFM (Customer Focused Manufacturing), SCM (Supply Chain Management) and technologies, based on the same concepts as ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), etc. It will also require supply handling, synchronized with production and effective distribution based on the interaction of logistics intermediaries.
Secondly, it is necessary to optimize the transportation system both at a micro- and macro-level. The complex development of transport infrastructure is based on the standardization of goods and freight, means of transportation, mechanisms of handling cargo, delivery speed, widening of road and railway networks, improvement of service maintenance.
Thirdly, the information exchange plays an increasing part.Industrial companies have to interact in the field of information so that information can be accessed in the right form, at the right time, by the right authorities and in authentic type, protected from unauthorized use.The aim of the paper is to examine the application of logistics outsourcing as a means of assuring a competitive advantage for an organization.
2. Contemporary logistics management and outsourcing
The aim of logistics process is formulated by the basic rule of logistics – the 7R principle: the right product with the right quality in the right quantity has to be delivered at the right time and right place to the right customer at the right cost. Disregarding of even one of the above conditions may lead to a loss of customers and, thus, to a decrease of the companyrsquo;s competitive advantages and reduction of its market share. The logistics approach, unlike the traditional one, suggests integration (technical,technological, information and economic) of separate units in the delivery supply chain into a unified system of direct management of material and information flows targeting the accomplishment of the desired result with a minimum loss of time and resources.
The implementation of an up-to-date logistics management in companies provides reduction of stocks, high predisposition of merchandise towards deliveries, order-to-delivery lead-time reductions and an increaseof quality, expansion of production flexibility, lowering the cost of production, accelerated capital turnover. This guarantees lower production costs and better quality of deliveries, which is a decisive competitive advantage.
The thing class manages the software, is flows the transportation enterprise service flow according to the thing, according to relates the enterprise service various class numbers, composes an organic system, causes aspect the and so on service, finance, market information to be able to be convenient, to transmit quickly, and produces each kind of report form after synthesis processing to deliver for each function department and the decision-making strata. The appliance flows the management software system not only to be possible to save the massive manpower, reduces in the work the fault, may be rapid to the customer inquiry inquires the information answer customer from the computer, moreover may help the policy-maker promptly to adjust the company to manage the strategy, enhances companys in same profession well-knownness, the enhancement companys competitive power.
Besides lowering the operative costs, together with the logistics ones, one of the basic directions of the organization strategy is concentrated on priority types of business and operations. This helps the rational allocation of resources to those types of business, whichare worth competing and where the company has distinctive advantages (technology, know-how, special equipment, and trained personnel). This approach can be defined as “core competence”.
The universal practice therefore is to use “outsourcing” more and more widely. The term “outsourcing” suggests contraction or decline of onersquo;s own business process, usually that, which is not the core one (not the profiling one) and/or that, which is not profitable for the company and passing it to a company, which specializes in this
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