Essay Example on Logistics: Optimizing Supply Chain to Compete in Global Market

Introduction

Logistics involves the principles that aid in planning in a company to meet goals in the supply chain like proper management. It controls the movement of goods in the firm and aims at meeting consumer needs. The functional areas of logistics include store management, inventory control, and procurement of products. It is also helpful in packaging, transport sector, and in customer service provision. The efficient logistics function helps an international business to compete in the global market effectively in various ways. These mechanisms include efficient transportation, proper supply chain management, effective service delivery, warehouse management, and appropriate inventory control.

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Body

The efficient logistics function ensures the transportation of goods from the firm to the consumers is optimum. It also guarantees proper movement of raw materials into the company, therefore, ensuring continuity in the production flow. Proper logistics oversees products and the associated information from the point of origin to the destination, for instance, in the shipping of goods. The logistics personnel determine the most efficient transportation means for shipping goods hence eliminating spoilage and possible losses (Florea 2020). Logistics plays a major role in customer satisfaction by ensuring the reliable delivery of goods and services. A proper logistics system is flexible to meet the needs of each customer. Efficient logistics function ensures proper warehouse and inventory management. This move results in efficiency, consistency, and high-quality products, therefore, makes the firm compete effectively in the global market (Florea 2020). In a company, logistics help in proper planning; hence the management can design the appropriate methodology to meet the goals of the institution. Achieving goals makes a firm competitive by improving profitability and ensuring growth. Information from an effective logistics function helps the leaders of an organization to make proper decisions. This aspect results in meeting organizational goals within the specified time limits leading to success. Appropriate decision making also ensures that the achievement of objectives is under the specified budget therefore, eliminates wastage. This move leads to the growth of the multinational corporation hence making it competitive in the global market. The company is able to pack its goods appropriately with the aid of efficient logistics. Packaging aids in protecting the product from damages, displaying vital information to the customers, and serves the role of product promotion. Well defined packaging helps in the marketing of the product hence increases the customer base.

Conclusion

Efficient logistics functions help international businesses to compete in the global market effectively. Logistics serves the role of planning in the firm hence influences decision making leading to goal achievement. Several departments, such as warehousing, inventory control, transport, packaging, and customer service, need efficient logistics to deliver their functions. Through efficient logistic function, a firm grows due to an increase in profitability and financial muscle. The organization is, therefore, able to compete globally with other established multinationals.

Reference

Florea, V. (2020). Principles of modern logistic strategies. Ideas.repec.org. Retrieved 21 April 2020, from https://ideas.repec.org/a/ovi/oviste/vxiiy2012i2p967-970.html.