Logistic direction and supply concatenation direction is ever utilizing by a company in their company direction construction nowadays. Logistic direction and supply concatenation direction is rather similar responsible and map but Alan Harrison and Remko ( 2005 ) were specifying that logistic direction is a portion of the supply concatenation ; it is direction of the flow of information and goods and related efficiency of precedence and cost motion in a company.
There is three constituent of the logistic system. First constituent is physical supply which traveling the goods from the provider to the operation procedure. Second constituent is the internal operation and it is a direction to assist in-process stuff flow with efficiency. The last constituent is physical distribution and it is the procedure of the bringing goods to the client. Mention to appendix 1, it is show the moving of the goods at the get downing point from the provider to the terminal point which client received the goods. In other word, it is the inward logistic and outward logistic. Inbound logistic is the procedure of the input purchases and the internal distribution. Outbound logistic is the procedure that concerns the storage of the goods and the external distribution.
Logistic direction includes the activities like stock list control, transit direction, warehousing, managing of the stuff, concluding goods packaging and the integrating of information. It help a company ‘s production procedure which from the get downing point until the terminal point can be meets the lowest cost as possible. It besides concerns the bringing of the concluding goods to the client can be ever run into the minimal logistical cost.
In other manus, supply concatenation direction is the systemic direction. The maps of the supply concatenation direction are involved procurement, transition, sourcing, client service and whole logistics direction maps. It is responsible to do strategic integrating and coordination to the concern map in the supply concatenation ( Mentzer, 2001 ) It is helps the company to guarantee its supply concatenation is efficient and cost-efficient. The intent of the supply concatenation direction is assisting the company to bettering the long-run public presentation to accomplish the strategic advantage. It besides helps a company to extinguish the variableness in supply web, fabrication procedure, and client web. ( David Simchi-Levi, Philip Kaminsky, Edith Simchi-Levi, 2004 ) The illustrations of the variableness are late bringing, quality job and irregular order. Supply concatenation direction is aim to hold the right goods in the right measure at the right topographic point and minute at minimum cost.
Airlift Associates Sdn. Bhd that locates at Subang in Malaysia is a transportation and cargo forwarders company. Airlift is Malaysia ‘s prima incorporate logistics suppliers that offer advanced logistics solutions to their client. The logistic solutions include transit, distribution, repositing, stock list direction, cargo forwarding, imposts securities firm, insurance, supply express little package and papers service. Airlift provides the logistic service between any two topographic points. Delivery of the goods can be made by aeroplane, ship and container. truck Airlift was use the logistic direction in their company construction which Airlift receives the goods from their client and pull off their client stock list in their warehouse with carefully, so bringing the goods to put that their clients require.
DELL is a company that applies supply concatenation direction in their concern construction. It is similar with the logistic company but no wholly. It does the logistic company done, like receive goods, and so pull off the goods in warehouse and bringing to the consumer. Compare with the logistic company, it has concern much to the strategic integrating and coordination in their concern maps. DELL provides client service to their client and bettering their public presentation by analyzes the client demand and demands. DELL ever design and comes out a new merchandise to carry through the client demands and enable them accomplish the advantage of invention. In other manus, DELL besides manages to avoid waste in the production procedure. They produce the merchandise measure depend to the client demand and order which DELL use the Just-In-Time system in their fabrication ( Mike Halon, 2007 ) It can be salvaging cost and quicker motion in the bringing public presentation.
As a decision, supply concatenation direction has concern and analyze more than logistic direction. Logistic direction concern merely the activities of the inbound logistic and outward logistic but supply concatenation direction concern all portion of the logistic direction and besides provide the strategic integrating and coordination in their concern maps, like client service and pull off the relationship with the provider.
The Pareto rule is province that many of the results or events which the 80 % of the consequence are come from the 20 % of the causes. The instability relationship between causes and effects, attempt and result, and inputs and end products bring out the 80/20 Pareto rule. It is average focal point on the 20 % of the activities or occupation can convey out the 80 % of the consequence or benefit
Inventory direction is really of import to a company because better manage and command stock list can be increase better client service, operational efficiency, and cut down distribution and stock list costs. A company can be using the following stock list direction system for better direction in their stock list. There are Enterprise Resource Planning ( ERP ) , Just- In- Time ( JIT ) and Economic Order Quantity.
Enterprise Resource Planning is a computing machine web system that integrates informations of all company map into a individual system. Enterprise Resource Planning handles every information from buying, telling, scheduling, transportation, supply concatenation planning and stock list count from the concern map of buying, fabrication, distribution, and stock list direction. It makes information sharing in the administration become easier and efficiency when all informations and information are fall ining into an overall system. The stock list informations can be update at the same time in the system. It is provide convenient for related section to understand the stock list position or either make up one’s mind to do add-on buying order or no. This invariably inventory information updated lead efficiency production control. The information from the full section can be handled suitably and each section can be work with efficiency and faster by the information sharing advantage. Enterprise Resource Planning generates a proper and better communicating between different sections by utilizing merely one system.