Understanding Logistics Performance Measurement And Importance Commerce Essay

Understanding Logistics Performance Measurement And Importance Commerce Essay Probably the first attempt to define logistic performance was made by Chow et al. (1994), and they presented some measures for measuring logistics performance. Since then, most of the literature on logistics performance appears to focus on models and frameworks (Clarke and Gourdin, 1991; Mentzer and Konrad, 1991; Rao and Grenoble, 1991) and on managing different aspects of logistics (Larson, 1994). Logistics performance may be thought as a subset of the larger notion of firm or organizational performance. For Instance, Gleason and Barnum decided to distinguish between effectiveness and efficiency. They defined effectiveness as the extent to which an objective has been achieved, while efficiency was defined as the degree to which resources have been used economically [journal of logistics management. Simply put, efficiency is doing things right, while effectiveness is doing the right thing [journal of logistics management, 42, pp. 3, 4]. Sink and his colleagues defined seven dimensions in order to illustrate the notion of what performance means: they are effectiveness, efficiency, quality, productivity, quality of work life, innovation and profitability/budgetability [journal of logistics management 43, pp. 266-7]. Performance measurement in the logistics functions, like all the business functions, begins at the individual metric level. However, there is forceful need for a method with which to evaluate the existing metrics as there is great abundance of metrics already in existence Logistics performance Indicators: Complex process of logistics is divided into activities which carried out at high quality will not automatically turn a process into a high standard one but they offer chance. The logistics system has the following areas with quality concerns: Logistics facilities, Logistics process and sub processes Human services, organization, management. If we talk about the quality of logistics beyond the three areas mentioned above, then we have to involve the performance and productivity indicators . Quality of logistics facilities: These facilities include: Delivery Facilities warehousing facilities packaging facilities material handling facilities Quality indicators of logistics facilities: Load capacity and performance Modern design Suitability to jobs Maintenance background Man-facilities relation (environment protection) Good-facilities relation (specialties of goods, unit load, packaging, etc.) Ways-vehicles relation Performance-price relation Relation of expected life and price of facilities Specific energy and lubricant costs Specific performance costs Specific maintenance costs Reliability Featurelessness (failure rate,) Longevity (general overhaul cycle, life span) Restorability (av. Restoring time, total break-down time) Storability, transportability Quality indicators of Transport ways Capacity, length, network, way leading (curves, slope etc.) Easy to survey, surface, illumination speed, sensibility to weather, comfort Information, signs Safety, help (telephone, helicopter etc.) Quality indicators of logistics process(es) Optimum combination of jobs (tasks) and facilities Optimum packaging and load unit Optimum logistics chain Optimum route and time Minimum transfer of goods Minimum warehousing time and event Organizing and managing logistics activities in environment-friendly way Capacity supply/capacity demand Appear time/ordered time Damage events/total activities (packaging also) Missing volume/total volume (packaging also) Error delivery/total delivery commitments Physical processing time Performed commitments/ demanded commitments Number of customers/year Logistics performance measures can be categorized into two categories such as qualitative and quantitative measures. Qualitative measures include such as customer satisfaction and product quality etc., and quantitative measures include such as order-to-delivery lead time, supply chain response time, flexibility, resource utilization, delivery performance, etc. Quantitative metrics of supply chain performance can be classified into two broad categories: Non-financial and financial. In fact, in the late 1880s the main emphasis was on financial measures such as return on investment (Christopher, 1992; Schermerhorn et al.,, 2000). However as the second progressed during 1980s, the world market changed and companies began to lose market share to overseas competitors who were able to provide higher-quality products with lower costs and more diversity. To re- capture the competitive edge, companies not only directed their strategic focus from low-cost production to quality, flexibility and short lead time, as non-financial measures (Bower Hout, 1988; Rushton Oxley, 1989; Stewart, 1995). . One of the studies conducted on performance measurement clearly suggests that each entity or company on the supply chain needs to adopt a more balanced perspective in its performance measurement and management approach. It is also suggested companies can measure more adequately non-financial indicators in addition to the financial ones (BSC). Companies need to recognize more the importance of drivers of strategic future performance as represented by the indicators within the internal process perspective and the learning and growth perspective. As it is, it would appear that though these non-financial drivers of growth indicators are recognized as important, they are often overshadowed by the financial indicators. Moreover, managing a given supply chains overall performance necessitates the coordination of measures across the different entities on the supply chain. In nutshell, requires all entities on the supply chain to adopt a common balanced perspective in their performance measurement and management in order to facilitate the overall performance and competitiveness of the entire Business logistics performance metrics could also be classified as Operational performance metrics Day to day technical representation adherence to developed schedule ( important to give time and location dimensions for quality assurance) Ability to avoid complaints(means minimizing the possible complaints) Achievement of defect free deliveries Inventory carrying cost(Levy (1997) Information carrying cost (Steward (1995) Tactical performance metrics Efficiency of purchase order (using economic order quantity and other approaches) Cycle time Booking in procedures Cash flow Quality assurance methodology Capacity flexibility Total transportation cost Strategic performance metrics Rate of return on Investment (is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested) Total cash flow time lead time against industry norm, Quality level Cost saving initiatives supplier pricing against market(Gunasekaran et al. (2004) Customer query time Importance of performance Measurement The importance of performance measurement cannot be denied as one of the manufacturing and management consultant said that you get what you inspect, not what you expect. (Melnyk et al. 2004) It has also been affirmed that organizations would gain competitive advantage, through logistics, when they seek and achieve excellence in the twin peaks of cost and service leadership (Christopher (1992, pp. 8-10). Similarly, another states that in operations strategy, organizations can compete not only on productivity, but also by giving perceived value through innovation and quality (Garvin (1992, pp. 126, 204, 321). Metrics are required to evaluate work done and to direct the activities, since what we measure indicates how we intend to deliver value to our customers Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of action (Neely, Mills, Platts, Gregory, Richards, 1994). Pressures (severe competition, globalization, and rapidly changes in customer requirements) are significantly driving force to organizations in order to re-focusing on utilizing of people and resources based on organizational objectives. Organizations need to provide a performance measurement system to evaluate the resource utilization so that they can strategically manage and properly control to achieve their objectives and goals. it has been pointed out that performance measurement is vital part of controlling process in order to take action for ensuring desired results. (Schermerhorn and Chappell ,2000) Case Example: Many people are surprised how Wal-Mart is able to charge such low prices and continue to make a profit. There are several factors in their business model that contribute to this ability, but a big one is their ability to adapt to an ever-changing global marketplace and running an efficient supply chain system. Moreover, the giant retailer is implementing the most advanced technological solutions and measures to be efficient market player. This ability requires a flawless logistical system that allows product to be shipped anywhere at a moments notice. Wal-Marts commitment to improving operations, lowering costs and improving customer service is making it efficient and effective retailer. However, Wal-Marts success lies in its ability to drive costs out of its supply chain and manage it efficiently. Wal-Mart is considered to be a supply chain-driven company that also has retail stores. Running the whole business model on the low prices strategy and low cost transportation enables Wal-Mart to sell its products at the lowest possible prices. Wal-Mart operates each of its stores like a small company. Trained store managers manage one store at a time, one department at a time, and one customer at a time. Wal-Mart has implemented advanced logistics solutions like RFID (radio frequency identification). These solutions assist in maintaining lower costs, identifying out-of-stocks and increasing sales. Wal-Mart has successfully established Distribution centers (DC) instead of warehouses, cross-docking technology and automated replenishment also reduce inventory carrying costs. (Anonymous, 2007) Conclusion: The logistics challenge is that organizations have to be more responsive, with high levels of flexibility in delivery. The emphasis should be on processes and performance rather than on functions and profit. The competitive battleground will be in the fields of quality, productivity, speed and innovation. Progress towards performance excellence will be aided greatly by relevant and integrated measurement frameworks and models (Christopher (1994). It has been proclaimed that when you can measure what you are speaking about, and expresses it in numbers; you will know something about it (Lord Kelvin, 1996) Realizing the importance of performance measurement in logistics, many big market player are trying to be more efficient by investing huge resources in latest financial as well as non financial tools Moreover, logistics costs take 18-23% of total production costs (in a wider sense even 40%).For this reason production companies are going to make these activities more effective and efficient. Big companies have third partners (forwarders) make it. A forwarder can comprehend and optimize a longer interval of logistics chain. The share of distribution and production logistics is not right. The border is not sharp. In the case of quality the question is how and not where.

Problems Of Modernization In Developing Nations Essays -- essays resea

Problems of Modernization in Developing Nations The economic situation which exists in the developing world today, is the result of the relationship between the modern, and developing nations of the world. Modernized nations benefited from this relationship because it gave them access to natural resources. However, because of this relationship, many developing nations now suffer from severe problems. These nations are attempting to change the situation in which they struggle. A political cartoon I have recently seen illustrated the economic relationship between the industrialized world and the developing world. It shows that the industrial nations, The United States and Europe, are located in the northern hemisphere. On the other hand most of the developing world, Central and South America and Africa, are found in the southern hemisphere. The "well fed", well dressed individual holding the industrialized world indicates that the modernized nations of the world are prosperous, and have a high standard of living. The skinny, poorly dressed individual holding the developing world indicates that the developing nations of the world are not prosperous, and have a lower standard of living than do industrialized nations. Both individuals are supporting each other in such a way that if one is removed, the other will fall. Without resources to use, industry would not be able to maintain its existence. Likewise, without a market for their resources, or the products of indus...

Persuasive Speech on Sex Education at School Essay

Should children be given sex education in schools, or should this be the responsibility of the parents? Thesis Statement: Sex, as serious and important to discuss, is still a very uncomfortable topic for teenagers to discuss; this speech will persuade the audience that sometimes, some things are best discussed at the comfort of a child’s home rather than the company of others. Sex is an important part of life. Whether or not we choose to go for it right away or wait, chances are we will have sex at one point in time, which is why it is better to get the facts straight sooner than later. The problem is though, with sex; we don’t get to say, â€Å"Experience is the best teacher.† If it is, then we could all get away with doing â€Å"it† and could say that we’ll do better next time. In 2010, the Philippine Government has implemented a United Nations-backed sex education program in public schools for children and teenagers. The sex education program has been piloted in selected schools around the country and included topics such as Reproductive Health, HIV/AIDS prevention, and family planning. Most of these topics imply only the abstinence part of sex education. Talking about sex does not make us want to have it. In fact, in health classes, sex is usually associated with abstinence. To be honest, my family has been open into discussing sex issues to us, their children. From time to time, they open discussions about sex, and ask us of our concerns with regards to certain aspects of sex. At first, I found it a whole lot awkward and uncomfortable talking about genital organs and hearing about how babies are made generally. However, as I have continued going to school and is somehow able to acquire the maturity I was expected to have, I have learned that sex should be taken seriously.

Essay on The Role of Men and Women - 940 Words

In order to fully comprehend and appreciate the implication of literature and the power it has to elucidate upon life’s various facets, it is imperative to compare and contrast various works, which possess certain concepts and beliefs that are common. No Exit by Jean Paul Satre and Night Flight by Antoine De Saint-Exupery are two works of literature that share certain ideas and concepts, one of which is the exemplification of the different roles that men and women play in society and how they have been conformed to occupy certain positions. No Exit and Night Flight are two stories that explore the roles of men and women in society. However, a literary analysis and comparison of these two works reveals two very different sides of the†¦show more content†¦In my opinion, gender roles are being challenged today to a certain degree, but in order for us to become more open-minded, it is imperative to find a central path between the two extremes. While it is important for us to maintain our physiological differences and fulfill certain individual responsibilities, it is equally important for women to assume more significant roles outside the household and to realize their full potential. No Exit, by Jean Paul Satre follows three characters who have been condemned to â€Å"hell†, for the evil deeds committed by them. Here, Satre has represented hell, not in its biblical or Christian sense, where the sinners and transgressors are tortured, but as a room, with no windows and only one door, and where the inhabitants are left alone with their thoughts and the other persons that reside therein. As the play unfolds, the audience is made aware of the sins committed by the individuals that have caused them to be here, including adultery, murder and cowardice. Through this explication, the author has showed us the differing gender roles adopted by men and women but more importantly how certain individuals will tend to deviate from these norms. Though the expected norm is for a man to be brave and fearless, Joseph Garcin is a coward and refuses to accept his responsibilities, made abundantly clear by hisShow MoreRelatedRoles Of Men And Women1250 Words   |  5 PagesWhen you think of the roles for men and women in a relationship, what do you think of? Do you see both men and women working full time jobs or do you only see the man working and the wife staying at home? Roles are continuing to change in many ways. People can choose to either get married young or wait until they are older. We get this picture in our head of how our love lives are supposed to be from the media. Some people consider their jobs to be just as important as their relationships. ExpectationsRead MoreRoles of Men and Women1639 Words   |  7 PagesChanging roles of men and women adapting to changes in work and family life in Australia. Roles of men and women have changed in todays context, unlike the past, it was caused by cultural and sociological changes around the communities. Roles can be defined as the characteristic and expected social behavior of an individual. The aim of this essay is to investigate the changes in responsibility of men and women, adapting to changes in work and family life in Australia. This essay will focus on threeRead MoreRoles Of Men And Women845 Words   |  4 Pages Men tend to take leadership roles over women, but why? Do they lead differently where one is better than the other? In Reframing organizations: Artistry, Choice, and Leadership, Bolman and Deal discuss the possibilities of men and women leading differently, and estate that, â€Å"for the most part, the available evidence suggests that men and women in comparable positions are more alike than different† (pg 352). Men and women share leadership styles, but when you look at how each implement the styleRead MoreThe Rol es Of Men And Women1477 Words   |  6 Pageshistory, men and women have had different roles in everyday life. Men were traditionally the bread-winner, the handyman and the ruler of the household. Women were the cook, cleaner, child-bearer (and raiser), and clothes maker. As humankind progresses, humans progress. Should women be subjected to always be the little housewife? Should men always be pressured to be the money makers of the family? My answer to both of those questions is: absolutely not. This essay will display how the roles of men andRead MoreRoles Of Men And Women Essay1707 Words   |  7 Pages1800’s the roles of men and women are very different than what we see in today’s culture. Although we maintain a description of men being masculine and women being feminine, in recent years this topic has become either clarified or convoluted depending upon the culture a person was raised in. In the past, traditional gender roles were shaped and defined by the expec tations of society. These roles were simple in the fact that men were understood to hold roles that were superior to women. The men, duringRead MoreRole Of The Men And Women1060 Words   |  5 PagesIt has been said that the best way to understand the character of a society is to examine the character of the men and women whom the society chooses as its heroes or its role models. The reality of that statement can be felt throughout society as it clamors to see justice, courage, and honor in the lives of its citizens. Society needs its heroes to help define itself among a sea of different societies. Next, as society shifts, these ideals remain the same but the way they are expressed in our heroesRead MoreThe Roles Of Men And Women Essay1940 Words   |  8 PagesThe roles of men and women in society, though they vary slightly from culture to culture, have been forged in such a way that that they have been ingrained in us, while being nothing more than a social construct, and we appe ar to be unable to shake them. Although we do try to be accepting of change, the very thought of an adjustment in our perceived gender roles typically results in a reaction that is a cross between a cringe for some and a furrowed brow for others. When we happen upon an eventRead Moremice and men - role of women1028 Words   |  5 Pagesï » ¿In the world of migrant workers in 1930s America, the main roles of women was to help and serve men, and were mostly regarded as either domestic housewives, or highly sexualized objects to be used and discarded. Women were traditionally and commonly thought of as the homemakers that took care of the home and children in this time. In MM, women are represented quite negatively, and as if they are to blame for all the men’s troubles. In the novella, the migrant laborers were unable to settle downRead MoreGender Roles Of Women And Men845 Words   |  4 Pagesexpected to play specific gender roles. In Canada women and men are thought of as equal, having the same rights to respect, autonomy, and independence (Bonvillain and Miller 2013: 39). The CBSA ignored this right when the agency allowed religious travellers to avoid female guards. Although men and women may have different roles in their households and communities, their work and activities are equally valued and socially rewarded (Bonvillain and Miller 2013: 39). These roles play an important part in shapingRead MoreMens and Womens Role Essay558 Words   |  3 Pagesyears, roles of men and woman have changed tremendously. During the 1950s men and woman were viewed contrastively, expected to fulfill certain roles. Men worked outside the home however women were expected to stay within the home. Men have been tasked with providing money for the family whereas women had no choice but to become housewives, meaning they had to be caring mothers, hard-working homemakers, and respectful wives. However in 2013 men and women have a choice on what they want their roles to