Logistics Planning for Customers
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Logistics Planning
Assignment Overview
Please read the article below which concerns locating near customers.
Crammer, L. J. & Wegfahrt, A. M., (2006). Ranked #9 proximity to major markets. Area Development Site and Facility Planning, 41(5).
Abstract:
Although a company's location criteria and business model change over time, it is really the customers who establish broad location strategy. Furthermore, the business model established by most companies will be based on customer preferences—which also change over time. For example, the old-school model used for manufacturing included the need to inventory raw materials and sub-assemblies at the manufacturing site.
Assignment
Then, in a 5- to 6-page paper answer the following question.
Do customers really drive location and how does this affect logistical planning? Choose a specific industry (e.g., beer, clothing, automobiles, etc.). Compare the location decision of a Manufacturing company, to a Distributor, to a Retail location. How much influence does the customer of each of these types of businesses have on the location decision? How does this effect the logistics of each?
Assignment Expectations
Research the topic with information from the background readings as well as any other resources you find on your own. The paper should be 5-6 pages in length not counting the cover sheet and a reference page. Clarity of presentation is important, as well as your ability to cover the topic in a succinct, organized manner with research to back up your points. Use at least 3 different sources of information and annotate your sources of information appropriately on your references page and within the text as necessary. You will be assessed on how well you develop this case and demonstrate your understanding of location decisions as applied in a logistics context.
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Solution Summary
The expert examines logistics planning for customers. The response addresses the query which is posted in 1546 words in APA references.
Solution Preview
The response addresses the query which is posted in 1546 words in APA references
//The effective management of the flow of goods and services from the point of production to the point of consumption is determined in logistics planning. The flow of logistics should be maintained at such a level that the ultimate customers receiving the goods receive it at the right time and place. In the following section, we shall come across the manner in which customers influence the logistics planning of a company by considering the manufacturing, distribution and retail location of Toyota Motors in the United States of America.//
Toyota Logistics Planning
Nowadays, customers of any multinational company are spread all over the globe, and they want the delivery of their good on time and at a reasonable price. Therefore, most of the companies have spread their supply chain globally to fulfill the expectations of the customers.
Toyota Motors is a Japanese automobile manufacturing company headquartered in Toyota, Aichi, Japan (Toyota, 2015). The customers of Toyota Motors are spread worldwide; therefore, they have formulated their logistic supply in such a way that they are able to manage it appropriately, as well as serve their customers in an efficient way. The main reason behind Toyota Motors being amongst the top automobile companies of the world is that it is able to manage its logistic supply appropriately. The distribution network is, to a great extent, influenced by its manufacturing location. The manufacturing plant of the company is designed in a manner that certain plants would only produce automobiles for the local market whereas the other plants would cover the global market.
Manufacturing System of Toyota
Toyota invented the lean manufacturing system, which is followed by many other organizations. The company produces only those parts, whose need arises and, therefore, eliminates wastage. On the basis of this system, the efficiency of production is achieved. Furthermore, the company also uses location strategy in its manufacturing in which it uses global, regional and local facilities for manufacturing of different parts of the automobile. The company also offers dealership at the places, where it has a manufacturing plant. It has its manufacturing location in the United States, Thailand and China. It also has the dealership situated at those locations so that the time gap between the production and delivery is less (Lombardo, 2015). Transportation of raw material takes place through trucks and, therefore, the suppliers are in proximity to the manufacturing plant. This reduces the time in transportation and manufacturing and improves the ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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