Logistics Essay Example | Topics and Well Written Essays - 2250 words

Logistics - Essay Example There are firms that have developed themselves as logistics providers and offer value added services to other firms. These firms manage logistics issues and supply chains of other firms since many firms prefer to outsource these functions. They plan, organize and direct firms’ supply chains and logistics. They provide integrated systems that usually meet the needs of their clients (LONG 2004, p.339). They have to organize how the client’s cargo reach destination on time and safely. Additionally, they ensure cargo clearance by the customs and order processing. This means that the operating costs of the clients reduce since the process is efficient. The idea is to make the logistical service provided be a component of the business of the clients. The provision of these logistical services by third parties enables firms to concentrate in the production process only, which is their core business. Once the firms produce products, logistics providers take over and deal with i ssues such as transport and communication. This paper discusses the various types of systems used in logistics services provision and the components of logistics management. In addition, it discuses the benefits and challenges associated with these systems. Logistics Systems There are various systems used in logistics management. These systems mainly aim at enabling firms to achieve quick response manufacturing. The business world is competitive, and the ability of a firm to produce faster gives it an edge over others. The firms should also be able to develop concept, design it and produce a product faster in order to be highly competitive. Opportunities are also available to firms that can produce products faster and deliver them to market quickly. Quick response manufacturing is a method that enables firms to reduce their lead times in the various stages of productions and operations. The goods produced thus reach the market early enough and enables the business to secure its pros pects. It enables the firm to be more competitive since its products are in the market early enough. It attracts clients due to the fast production and delivery of products to the market. Additionally, the profits of the firm are likely to increase since production time reduces, and the return on investments is likely to be improved. The benefits of this system are that the outlay on production reduces and the market share increases. The needs of the customers are also met faster, and the introduction of new goods in the market can be done swiftly. In addition, quick response production removes wastage and increases efficiency in the production process. One of the systems used in logistics management is the kanban system. This is an information system used in managing manufacturing quantities in various stages of production. It enables the firm to produce the desired quantities within the set time. Kanban is a card which notes the nature and the number of units to be produced. The c ard is dispatched to individuals in the prior stage from the succeeding process. The result is joining of all stages in the production process. The quantities and qualities of the products can then be easily monitored. The process enables autonomation and the tasks that workers do are homogeneous. The