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Logistics in the Business Organization

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Required Readings:

Dutton, Gail (2009 Sep.) Selling the supply chain upwards, World Trade, Troy: Vol. 22, Iss. 9, pg. 34, 3 pgs.

Then, in an essay, please answer the following questions:

1. Why have supply chain management issues often been ignored by senior management?

2. Describe the strategy you would employ to sell senior management on the benefits of focusing more attention on supply chain management. (Be sure in addressing the strategy question that you incorporate examples from Abercrombie & Fitch's experience described in Dutton's article and the suggestions noted in Rudski's article)

3. Discuss the benefits that might be gained from working closely with 3PLs, 4PLs and vendors in promoting supply chain management initiatives to senior management?

Assignment Expectations

It is anticipated that the paper will demonstrate critical thinking skills, clarity of thought, and breadth of understanding in addressing the placement of logistics in modern organizations and why senior management have often overlooked the importance and centrality of the discipline. Specific expectations for the work focus on demonstrating and evaluating creative solutions and strategies for increasing senior management interest in logistics and assessing the benefits of building alliances with 3PLs and 4PLs. It is also expected that the work presented in the paper will reflect a synthesis of previous course work in logistics and related courses, as well as incorporate new materials presented in the moduleâ??s background readings.

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Solution Summary

Logistics in the business organization are examined.

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Sell Supply Chain Management Upward

Answer 1

Supply Chain Management Issues

Supply chain management process is an important process for an organization. In the current business environment, supply chain management is evolving continuously that is creating several issues for the senior management of an organization. An increase in the business area is causing an increase in the issues in the management of supply chain. It is a managerial concept that should be taken into account by the senior management in an effective manner (Pryke, 2009). Most of the managers use the approach of 'file and forget it' for the supply chain management due to less understanding about the importance of supply chain in reducing overall cost.

The main focus of the senior managers remains over the other competitive assets rather than the supply chain, while it can also be a core competitive asset for the business in increasing its effectiveness and competitive position. The less logistic awareness also leads the managers to ignore the issues in supply chain. The other reason for ignoring the issues in supply chain is the increasing the profitability. It is because; managers in the more profitable companies are less concerned to address the supply chain issues. The profit margin decides the attention or inattention over the issues of supply chain by the senior management (Dutton, 2009).

Most of the senior managers don't consider the cost of transportation as a major source of cost that also affects their intention of addressing the supply chain issues. Organizations silos are other reason for ignoring the supply chain issues. ...

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