Logistics and Supply Chain Management Help of Postponement Model

Question: Describe about the Logistics and Supply Chain Management for Help of Postponement Model. Answer: Solution 1 Postponement Model and its type The supply chain and logistics management of a business organization can be improved with the help of postponement model. With the increase in demand for consumer products, it is essential for all companies to provide faster delivery with the help of effective supply chain management. The implication of postponement in the logistics and supply chain management will help minimize the time that is required for supply and delivery of products. In the modern days, customers have the wide range of choice to choose product from the market. The product development postponement will help the company to improve the design of the products using the latest technology. Moreover, it can also help in improving the supply chain strategy. Moreover, a company can also use purchasing postponement to strength the supply chain. A company can gain significant competitive advantage with the help of purchasing more items to enhance their stock. The Logistics postponement can help to increase the efficiency of the control of the flow of the raw materials and also storage of resources. Hence, it is possible for a company to meet the demand of the customers. LaptopCo needs to use the model of purchasing and logistics postponement as it will help to deal with the problem of insufficient stock of materials. The company will thus able to meet the demand of individual customer and also the small business owners. Moreover, the company can also provide faster delivery of products. Delivery Model and its type The delivery model in the supply chain management will help a business organization to improve the flow of goods and inventory. In Retail storage with Customer pick up a business firm can store the entire inventory in the local retail store. This will allow the customers to visit a local retail store or go online to purchase an item. This model is best suited to deliver fast-moving items. The last mile delivery system in the retail storage will help the transportation of products from the final courier hub to the location of delivery. This delivery model will help to reduce the time of total transportation of products. The package delivery model, on the other hand, will help to get the delivery of expensive and important items. This model ensures that the high-valued items are not damaged during the time of transportation. The LaptopCo Company can adopt the delivery model of direct shipment. This will help to ensure that the products of the company are directly transported to the customers from the manufacturing unit. This can help to reduce the cost of the delivery and reduce the total duration of transportation. Hence, it is possible for LaptopCo to enhance the flow of their business by meeting the needs of the customers and small business owner. Electronic Procurement In the business of electronic items, the companies need to exchange items from one business to another or from business to customers. This process of electronic procurement is an important part of the supply chain network. The bottle neck items are products that can only be acquired by the acquired by the suppliers. This type of products allows the suppliers to dominate over the supply chain model. On the other hand, strategic items are essential products that are required for selling to the customers. The main challenge for these types of product is that a crisis in the supply chain can cause difficulty in the delivery of items. There are also the leverage items, which can help a business firm to acquire high percentage of profit as these items can be acquired from a huge number of suppliers. The company can easily switch to different suppliers if they are not satisfied with the service of supply chain. The LaptopCo can use the leverage items of electronic procumbent to ensure that they are dealing either the best supply chain network. During the present day, there are several sources of buying electronic items. Hence, LaptopCo can make the best use of the situation to improve their product supply chain. They can also make use of the non-critical items, where only standardized products are purchased by the company to ensure that the volume of the orders is optimized to ensure maximum profit. Production Strategy With the help of the make to stock production strategy, it is possible to match production along with inventory to meet the demand of the customers. LaptopCo can use the assemble to strategy of production as it helps the customers to get products manufactured according to their choice. On the other hand in case of build to order strategy products are only manufactured after they are being ordered by the customers. In this case, the delivery time is usually more than other form of strategy of production. Finally, engineer to order is the process of manufacturing, where demand driven production is practiced. The specifications of the products are engineered according to the choice and demand of the customers. This strategy can also be practiced by LaptopCo as it will help the company to meet the demand of the customers. Supplier relationship type It is important for LaptopCo to maintain good relation with the suppliers so that it is possible to improve the logistics service. A company can have Arms length relationship with the suppliers, which is the most widely used type of business relationship. There is high level of business transactions involved with the greater frequency of exchanging products. There is also the coordinating relationship that helps to maintain high level of coordination with the supply chain network. This will ensure that a company does not face any supply-related issues in the market. These types of relationship mainly occur just between two parties or organizations. On the other hand, alliance relationship occurs between two or more organizations or suppliers. This type of relationship occurs between public and private enterprise to ensure that there is smooth flow in the supply and logistics chain. The LaptopCo needs to establish Arms length relationship with the suppliers. This will ensure that they are able to meet the high demand of laptop in the consumer market. The company will also be able to track the flow of products from different places. The suppliers can immediately inform the management of the company in case there are any issues in the process of transportation of products so that it is possible for LaptopCo to make an immediate action plan and find alternate ways. Solution 2 GSI system The use of the latest technology can have a significant impact on the supply chain and logistics management. In the age of information, it is necessary for every major business organization to collect information about the supply chain with the help of the latest technology. The GS1 system helps to share business-related information that is vital in making business policies. The Electronic Data Interchange (EDI) can be used by LaptopCo to improve the speed and accuracy of getting information about the supply chain network. There are two types of EDI standard under the GS1 system. GS1 XML and GS1 EAN. The EAN-13 is one of the major types of information sharing system that can be used by the LaptopCo. This will help the company to share data with the supply chain and trading partners from all around the world. The Radio Frequency Identification (RFID), which uses the electromagnetic field, can help in the identification and tracking of the items that are being transported. The tags that are attached to each individual item contain a unique code that helps in tracking of an item. The barcodes and RFID are the fonts of logistics and supply chain that help to transfer all the data regarding an individual item. These data can easily be scanned using the identification system software. Detail information about the item like the storage content, location of delivery and the logistics unit can be known using the unique barcode. The LaptopCo needs to design unique software application that can help in the identification of these codes and thereby help the company to get vital information. The accuracy and precision level of the supply and logistics chain can also be monitored using the tracking tools. The barcodes is an important identification system that is used under the GS1 system standard. The GS1 ID key is one of the most important identity keys that can help LaptopCo to save the cost of the supply chain. The GS1-128 are one of the major type barcodes that are used by LaptopCo on the cases, pallets and cartons and other unit related to the logistics and supply chain. This barcode is unique and it helps to get all detail information about the items that are being traded. The GS1 QR codes are two-dimensional barcodes that can be used by to support the use of GS1 and data matrix. Distributor Storage with Carrier Delivery In the distributor storage system, the inventory is not held by the manufacturers as they are controlled by the distributors of a company. These distributors or retailers are located near the warehouse, from where things are delivered to different locations as per the order of the customers. The fast moving items like electronic goods are best fitted for this style of delivery. It can also help to deliver items that need to be transported on an urgent basis. The GS1 system can be implemented to improve the distributor storage system with carrier delivery. The GS1 system is an integral part of the delivery model that is used in LaptopCo. The barcodes systems like the GS1-128 can be used by LaptopCo to deal with the retail customers that are located in the major cities. This identification tool will help the company to track the supply chain process and ensure that the items that are delivered are done in respective time. The RFID can also help in the process of supply chain and help the company to track the exact location of the item in any particular time. Use of identification Keys The GS1 identification keys can help LaptopCo to get information about the products of the supply chain. With the help of the ID keys, it is possible to identify the location of a product being delivered. When the company is planning to launch new model of laptops, it is crucial that they are creating new codes that are unique for the identification. This will help them to distinguish the new models from the older versions. The new features of those models also need to be implemented in the unique code. The GS1-128 code needs to be placed in the case of these new models and the EAN-13 barcode will help to detail information about those models. The key information like the date of manufacture, price and other details can be accessed using this code. The identification keys can also be used by the customers of LaptopCo to claim the warranty service of the products that are purchased. The GS1-128 barcodes can be used by the customer to get detail information about the manufacturing date and thus help in the process of claiming the warranty. The codes can help to store detail information regarding the manufacturing of a product. The RFID can help to track the items and thereby ensure that the terms and conditions of the warranty of products sold by LaptopCo are not violated. It is also possible to store information about a product in the database of the company that can easily be accessed using the unique QR code. With the help of the modern technology, it is possible to make full use of the GS1 system and ensure that the supply chain and logistics are managed efficiently. It is crucial for LaptopCo to improve the tracking system by implementing the latest technology in the supply and logistics management. Solution 3: Extended Producer Responsibility The extended producer responsibility is the concept that is used to minimize the manufacturing cost by integrating it with the environmental cost. Under this policy, the manufacturers need to have extended responsibility to deal the disposal of unused and waste materials. Financial support is provided to public and private business organizations so that they can adopt eco-friendly ways of manufacturing products. The recycling and reuse of old and unused materials are being promoted under this policy. This policy of extended producer responsibility can be implemented by LaptopCo to improve their supply chain and logistics management. As the producers are given extra responsibility it is the duty of the local authority to ensure that all the issues related to the business environment are solved. The government also has a high level of expectation from the business firms. The responsibility of the procedure under this policy is extended up to the post-consumer stage of the product lifestyle. The shifting of responsibility in both upstream and downstream can also be done by an origination. The manufacturer takes extra responsibility to ensure that the supply network is working in a smooth manner. In case of LaptopCo they get the supply of the parts from 12 different sources and hence, it the duty of the assembler to ensure that the supply of the parts is arranged properly. The manufacturer also needs to make proper agreements with the supplier and ensure that the delivery of the requ ired past is done in proper time. As the time of the manufacturing is lower, consequently, the time of final product delivery will also come down. Ethical Sourcing from Suppliers It is important for LaptopCo to ensure that the sources from where they are getting the required materials are from ethical sourcing. The main aim of ethical sourcing is to ensure that all the sourcing activities are done by maintaining highest possible standard. This will help to ensure that the sustainability is maintained. In the operation standard, it is the responsibility of every company to maintain ethical sourcing. Ethical sourcing can help to mitigate the risks that are associated with operational duty. Hence, it is possible for LaptopCo to maintain healthy reputation in the market by raising the brand awareness. The customers of the company can also rely on the source, from where they are gathering the required parts. Violation of the ethical sourcing can have poor consequence among the customers as the company is following the unethical practice to assemble raw materials. The quality of the final product is also compromised heavily due to poor sourcing of raw materials. LaptopCo being a company, who mainly assembles all the parts needed to manufacture a laptop, it is essential for them to source the required materials from authentic and reliable source. The company also needs to encourage the best ethical sourcing practice, which can help to manage the dealings with the suppliers' chain. This, in turn, will help the company to deal with the all illegal practice that is associated with supply network. The community-based methods to audit the suppliers can also help to work in collaboration with the supply and logistics chain of the company. Consideration of CSR during product design and Manufacturing The Cooperate Social Responsibility is an approach that can help to promote the brand value of an organization. It is also possible to maintain high level of social value with the help of CSR. It is the duty of a business organization to maintain clarity with the people of the society by disclosing the correct information about the all the suppliers of the company and also all the stakeholders of the supply chain management. In recent times, many public and private companies have the tendency to ignore the corporate social responsibility in the department of supply chain network. This is mainly because they adopt the illegal and unfair practice to get the supply of the required products. Therefore, it is the social responsibility of LaptopCo to consider the elements of CSR in order to avoid facing any legal issues from the local government body. The company can make a commitment towards sustainability to ensure that all the sourcing is done in proper manner. The CSR will also ensure that the reputation of LaptopCo in the consumer market is of high value and they are able to maintain clarity in the supply chain network. Implication of Reverse Logistics The concept of reverse logistics was introduced to reuse the products and materials. This is one of the best ways to prevent environmental degradation as it helps in the sustainable use of natural resources. The green supply chain management is closely associated with the idea of reverse logistics. The concept of reverse logistics can help a company to gain competitive advantage. Thus, the concept of reverse logistics can be used as a competitive tool and replace defective goods and also provide a replacement. With the help of this policy, LaptopCo can increase the level of customer satisfaction. The customers can return the defective and damaged products with the help of reverse logistics. Moreover, the company does not have to spend extra for reverse logistics as the products, which is being returned, is done in the same chain of transportation. Reverse logistics can also help to save the money that is spent to remanufacture defective and damaged items. It is also possible to spread awareness about environmental degradation and also provide measures to protect the environment. Therefore, with the help of reverse logistics, it is possible for LaptopCo to reduce the environmental pollution caused by the disposal of electronic wastes. They also can establish their reputation as a well-renowned brand in the market.