The Logistics Management

Question: Write an essay on The logistics management. Answer: The logistics management primarily refers to a particular segment of the supply chain management that formulates, executes and controls the efficient, effectual forwards as well as reverse flow along with the storage of products and services. The logistics management also handles the associated information between the different points of production and consumption in order to meet up the necessities of the consumer. The current segment intends to present the background of the report and critically analyses the interfaces, order cycles and the inventory management of G Star Raw along with recommendations for improvement. The present report outlines different principles of logistics management with special orientation to the operations of G Star Raw, a Dutch designer clothing marketer. The company is also commonly known as the Gap Star is founded and headquartered in Amsterdam during the year 1989. The company has adopted the single minded approach that intends to sell the luxury denim for the streets by fusing superior craftsmanship with street level edge in order to generate an advanced sector. In addition to this, G Star Raw has also formulated the strategy for positioning of the raw, unprocessed denim as well as wearable along with attractive material. G Star has flagship outlets in the New York City, San Francisco, Paris, London, Mumbai and many other places across the globe. In all, the company has more than around 6500 point of sale across the world (RAW, 2016). Interfaces Identification of the Functional Areas: The business logistics refers to different functional areas that include the inventory management, purchasing and production, transportation and warehousing. Production The logistic operation planning includes approaches, priorities, progressions as well as resource allocation facilitation for conducting the daily functions (Wisner, Tan, Leong, 2012). The logistics interface associated to the production and marketing can identify with the significance of assimilating the marketing as well as the logistics functions. The theoretical model Construct Model refers to four latent variables that include the internal assimilation in the production logistic interface, internal assimilation in the marketing logistic interface as well as external integration in addition to the performance of the corporations. However, the internal integration or the process of assimilation is said to be associated to the external integration. This complete model consists of the complete model and the measurement part that carries out a simple factor evaluation that can be easily approximated (Simchi-Levi, Bramel, Chen, 2014). The theoretical construct model is also subject to assessment using the Structural Equation Modelling (SEM), a statistical tool that integrates the measurement model that is the confirmatory factor assessment and the structural model that is the regression or path analysis into a instantaneous statistical examination (Pienaar Vogt, 2012). There is said to be positive association between the logistics production assimilation and external assimilation as per the collaborating relationship model. However, despite the prevalence of the internal and external assimilation association, there exists no causal association between different factors. The current segment can help in understanding the supply chain framework of the clothing company G Star Raw. The supply chain or the logistics structure for production can be described as the procedure within a sector. The primarily purpose of the production logistics is to make it certain that each and every mechanical units as well as the workstation is appropriately fed with suitable product in the correct quantity and quality at the proper point of time (Miller, 2013). The theoretical view of this principle can be comprehended by using the sigmoid curve (Miller, 2013). The sigmoid function essentially refers to the mathematical function that primarily refers to the logistic function that is a bounded differentiable and a real function that can be defined for all real input and has positive derivative at particular point. This curve presents the trajectory of the changes in the organization and involves period of experimentation as well as learning. This period is subsequently fol lowed by growth as well as development. Finally, the entire curve turns downward and it is important to gauge the length and duration of each section of the curve that varies with time (Miller, 2013). Marketing The functional area of marketing can also be illustrated in the light of the supply chain and logistics framework. The marketing of the clothing company G Star Raw also requires a strategic supply chain strategy in place in a bid to cope up with the dynamism of the market, changing demand of the customers and overcoming various challenges posed by the market (Macharis, 2014). The product strategy of G Star Raw also needs to match with the supply chain strategy of the company. The customer orientation as well as the value creation can be regarded as imperative parts of the supply chain strategy. As is correctly mentioned by Macharis (2014), the assimilation of the supply chain strategy that matches with the product type can increase the efficiency of the operations of corporation. In addition to this, it is also important to identify blockages in the supply chain by recognizing the problem and the restructuring the same. Quick identification of the blockages can help in solving the pr oblem and reducing the probabilities of the damages (KolasinÃÅ' ska-Morawska, 2013). Therefore, a supply chain needs to align with the product type in order to increase the efficiency of the operations. In addition to this, the management of G Star Raw can also refer to the model of logistic regression that can be used for the purpose of prediction of the chances of occurrences of a particular event (Kim, 2012). The logistic regression model therefore can therefore make use of different variables that can be either numerical or divisions. The logistic regression can be used extensively for marketing applications that encompasses prediction of the propensity of a consumer to purchase a specific product of the company or else stop a subscription. A positive regression coefficient implies that the risk factor substantially increases the propensity of a particular outcome. Therefore, a large regression coefficient means that risk factor immensely influences the chances of the outcome (Grant, Trautrims, Wong, 2013). On the other hand, a near zero regression coefficient implies that risk factor has very less influence on the chances of that outcome (Grant, Trautrims, Wong, 2013). Order Cycle Analysis of the effectiveness of current order processing system of G Star Raw The order processing system of G Star Raw can be considered to be very simple as well as possible that contains interesting characteristics as well as features that have the need to be illustrated. The diagram below demonstrates the order processingThe order processing system of G Star Raw follows different sorts of relationship that includes one-to-many associations, many-to-one associations, many-to-many relationships (Grant, 2012). A single customer might have multiple orders. The general information about a particular customer can be properly stored in a specific place rather than being repeated in every order. However, from the viewpoint of order there is many to one association with the customer item. The order can be referred to using the customer credit card number, the shipping method that might follow from the order item of the order, product and the quantity of the order (Grant, 2012). The order item can also be linked to the inventory of the product that bears the product name, description and the quantity on hand. The order tag thereafter refers to the tag name and the sort order. Accordingly, the order can be delivered to the customers using the shipping method that checks the customer name, address, state as well as credit rating (GolinÃÅ' ska, 2014). The final relationship in this particular model, several tags can be linked to a specific order and the available tags can be entirely under the control of the user. Recommendation for improvement The order processing system of the company G Star Raw can be changed using the context level model that uses simplified system for order processing (GolinÃÅ' ska, 2014). This particular system refers to five procedures that are listed under the context level dispensation narrative for the particular system. The procedure involves the customer database, the order database, customer and the order (Dou, 2013). In the order processing system, the customer places order that sends message for place order to particular system and right then the company notifies the consumers. The system generates the order and then sends the message for update to the system that in turn passes the same message to the order database of the company (Dethloff et al., 2014). The order necessarily gets updated in the system, order database and the customer database. The context level diagram for the order processing system of G Star Raw can also follow a flow of activities that can be developed for successful accomplishment of the operations of the corporations. The data flows in the order processing system can be related to five external entities that come from and go to different entities (Bowersox, 2013). The data flow system of this particular context level model can be described using the diagram below: The data regarding the customer order, new customer and different item number comes from the customer to the system. Again, the order processing system processes data out of the system to the customers regarding the shipped orders, customer billing statement and the specific item information. Furthermore, the accounting department receives information from the order processing system regarding the accounts receivable report. The warehouse receives the information as regards the order picking list and the order goods. Lastly, the inventory controlled division receives information concerning the back ordered item. The efficient flow of the data ensures effectiveness of the recommended order processing system for the corporation G Star Raw (Dou, 2013). Inventory Management Analysis of the effectiveness of current inventory management of G Star Raw The current inventory management system of G Star Raw mainly refers to a system that primarily encompasses different aspects of handling the firms inventories, purchases, shipping, receivables, monitoring, warehousing and storing, turnover as well as reordering, the operational functions of G Star Raw is performed in proper sequence and in order to get a well managed inventory control procedure. The inventory management system of G Star Raw includes the general ledger, sales, purchases, web viewer and the reports. The data from the system flows in and out the system to form these facets of the procedure (KolasinÃÅ' ska-Morawska, 2013). The general ledger contains information regarding the stock in, stock out and the stock adjustments of G Star Raw. The sales data contains the information concerning the inventory, shipment and the direct sales (Miller, 2013). The purchase section contains information regarding the inventory and the products received at G Star Raw that includes the men and the women products. In addition to this, the system also provides information for the web viewer. However, the stock transaction import enters important information to the inventory system of the corporation. Finally, the system can produce the reports that can produce important information regarding the stock take, transaction report, aging of the inventory, valuation report, edit report, evaluation reports among many others ("Alkhwarizm- Home", 2016). Recommendation for improvement The review process reveals the fact that the productivity of the entire process can increase through the automated system of the inventory management of G Star Raw. The use of the automated system can help in integration of the different systems that includes the inventory control and management process with the processes that include accounting, production and sales (Wisner, Tan, Leong, 2012). Therefore, the management of G Star Raw can also consider the vendor managed inventory system that refers to a particular business model where the buyer provides specific information to the vendor of the product and the supplier provides entire responsibility for maintenance of an approved inventory of the material. This usually happens at the buyers consumption location of G Star Raw and helps in obtainable the optimum stock, lower cost, management of the risks and get faster cash turns. Conclusions The above mentioned report helps in gaining comprehensive understanding regarding the different interfaces of the logistics of G Star Raw. The present report also critically evaluates the interfaces at the functional areas with special references to the theoretical models and concepts. In addition to this, the report also helps in gaining deep insight regarding the order processing system of the company and accordingly prescribes the recommended system for better management of the particular business process. The current segment also presents a detail review of the inventory system of the company and also proposes a better system that can enhance the entire logistics of the corporation. References Bowersox, D. (2013). Supply chain logistics management. New York: McGraw-Hill. Dethloff, J., Haasis, H., Kopfer, H., Kotzab, H., SchoÃÅ'ˆnberger, J. Logistics management. GolinÃÅ' ska, P. Logistics operations, supply chain management and sustainability. Grant, D. (2012). Logistics management. Harlow: Pearson Education Ltd. Grant, D., Trautrims, A., Wong, C. (2013). Sustainable logistics and supply chain management. London: Kogan Page. Kim, H. (2012). Advances in technology and management. Berlin: Springer. KolasinÃÅ' ska-Morawska, K. (2013). Logistics management. Ã…Â oÃÅ' dzÃÅ' : Wydawnictwo SpoÅ‚ecznej Akademii Nauk. Macharis, C. (2014). Sustainable Logistics. Bingley: Emerald Group Publishing Limited. Miller, S. (2013). Logistics management. New Delhi: Random Publications. Pienaar, W. Vogt, J. (2012). Business logistics management. Cape Town: Oxford University Press. RAW, G. (2016). G-Star RAW | G-Star RAW DENIM | Official Online Store. G-star.com. Retrieved 24 May 2016, from https://www.g-star.com Simchi-Levi, D., Bramel, J., Chen, X. The logic of logistics. Wisner, J., Tan, K., Leong, G. (2012). Principles of supply chain management. Mason, OH: South-Western/Cengage Learning. Dou, R. (2013). Proceedings of 2012 3rd International Asia Conference on Industrial Engineering and Management Innovation (IEMI2012). Berlin: Springer. (2016). Econ.upf.edu. Retrieved 24 May 2016, from https://econ.upf.edu Alkhwarizm- Home. (2016). Alkhwarizm.net. Retrieved 24 May 2016, from https://alkhwarizm.net