Unit 8: Global Supply Chain Management
Logistics
Logistics refers to a segment of the supply chain process that facilitates the effective planning, movement and storage of goods from the point of origin to that of consumption. It encompasses activities that revolve around transportation, storage, packaging, and anything else that facilitates the movement of goods from one place to another (Christopher, 2016). The primary objective of logistics is to ensure that customers are in a position to access products at the right time and place, with the right quality and price. There are two types of logistics, inbound and outbound logistics. Inbound logistics dwells with activities that fluctuate around obtaining materials, their handling, storage, and transportation. Outbound logistics, on the other hand, cover activities that revolve around the distribution of final products to customers (Christopher, 2016). Undertakings such as packaging, delivering orders, storage, managing stock and retaining the equilibrium between demand and supply are all essential aspects of logistics.
WMS
A warehouse management system refers to a crucial software that allows an organization to conveniently manage warehouse procedures from the time goods enter and leave the warehouse. Inventory management, picking processes, and auditing are some of the crucial operations in a warehouse. A capable WMS provides the management with visibility of the location of an organization’s inventory at any given time, whether in a storage facility or transit (Richards, 2017). Most warehouse management systems are integrated or used alongside an inventory management system or a transport management system to help manage supply chain operations conveniently. The benefits of Implementing a WMS in an organization include reduced labor costs, high inventory accuracy, reduced errors when picking and shipping goods, enhanced flexibility and responsiveness to customer requests, and improved customer service. Modern WMS work with real-time data, allowing the seamless generation of orders, receipts, and the movement of goods from one place to the other.
Globalization
Globalization refers to the interdependence of world economies, and the integration of people, companies and governments as a result of international trade (Beck, 2018). Countries in the recent past have built economic partnerships to facilitate trade between them. Technology advancement has facilitated globalization to a large extent since people can easily trade online. Advances in information technology in the current world have dramatically transformed the economic aspects of most countries. Information technology facilitates organization with tools that quickly analyze economic trends around the world. Organizations use information technology to identify profitable opportunities, make sales, transfer assets, and collaborate with overseas partners (Beck, 2018). International trade policies have also played a significant role in driving the current wave of globalization. They have helped open economies both domestically and internationally, which is a positive trend when it comes to trade.
References
Beck, U. (2018). What is globalization?. John Wiley & Sons.
Christopher, M. (2016). Logistics & supply chain management. Pearson.
Richards, G. (2017). Warehouse management: a complete guide to improving efficiency and minimizing costs in the modern warehouse. Kogan Page Publishers.