essay on logistics and supply chain management

Logistics and Supply Chain Management Essay (Critical Writing)

Logistics and supply chain refers to the management of interrelated networks, which are involved in provision of important goods and services to customers. The process is extensive, involving storage of raw materials and manufactured products and transportation of goods and services from the point of origin to the point of utilization.

Logistics and supply chain is often an all-embracing process that entails drawing of policies, scheduling, implementation, controlling, and scrutinizing several activities with the major aim of establishing the net value, creating an aggressive infrastructure, leveraging an all-inclusive logistics, harmonizing supply with demand, and quantifying the performance of manufactured goods internationally.

Logistical management is closely related to other important areas of management, including operational management, procurement, and information communication. It plays a critical role in ensuring that the organization outmuscles competitors in the aggressive market. In this regard, certain information is critical in logistical and supply chain management. One of the critical information is that related to client relationship administration.

Studies show that managers are expected to change from administration of personal roles to integrating the major actions into essential supply chain procedures. For instance, the purchasing department of any organization is supposed to place an order based on importance.

The marketing department will in turn communicate with several clients in order to meet customer demands. Based on this, process integration plays a role in ensuring that customer relationship management is achieved. The use of technology is inevitable in addressing the needs of clients since it permits organization, computerization, and harmonization of sales, advertising, consumer service, and industrial support.

Information related to addressing the needs of customers is critical in increasing organizational efficiency in the sense that the company will always address customer demands in time. This leads to satisfaction among clients, as they feel that they are valued. The organization increases its sales through customer relationship management. Information related to customer satisfaction is often employed in supply chain management because it allows the study of the market.

An organization faces several challenges in trying to address the demands of customers in the globalized market. Issues related to customer service, cost control, planning, risk management, and supply/partner relationship management are all challenges that organizations face in the contemporary logistical and supply chain management. Customer service is the major challenge that any manager has to address since it might affect the performance of the organization.

This implies that the merchandise offered should be precise in terms of quantity. All the necessary documents should be availed to the customer at the right time and at the right price. Customer service challenge in logistics and supply chain management can perhaps be resolved using the supply chain operations reference model, which offers a framework and understanding as regards to the conditions of supply and performance of the product in the market.

Logistics and supply chain management can be employed successfully in ensuring that other departments, such as manufacturing and operations departments, are successful. For instance, one of the core functions of logistics and supply chain management is monitoring the flow of the manufacturing processes. The manufacturing unit depends on logistics and supply chain department in processing goods and services.

Since logistical processes are employed in manufacturing, the industrialized cycles are reduced, which enhance responsiveness and efficiency in convening the demands of customers. Several factors, such as scheduling, forecast, and sustaining manufacturing processes for instance, handling, shipping, time phasing of apparatus, and record keeping, affect the cost and importance of logistics in many organizations.

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IvyPanda. (2019, June 13). Logistics and Supply Chain Management. https://ivypanda.com/essays/logistics-and-supply-chain-management/

"Logistics and Supply Chain Management." IvyPanda , 13 June 2019, ivypanda.com/essays/logistics-and-supply-chain-management/.

IvyPanda . (2019) 'Logistics and Supply Chain Management'. 13 June.

IvyPanda . 2019. "Logistics and Supply Chain Management." June 13, 2019. https://ivypanda.com/essays/logistics-and-supply-chain-management/.

1. IvyPanda . "Logistics and Supply Chain Management." June 13, 2019. https://ivypanda.com/essays/logistics-and-supply-chain-management/.

Bibliography

IvyPanda . "Logistics and Supply Chain Management." June 13, 2019. https://ivypanda.com/essays/logistics-and-supply-chain-management/.

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Supply Chain Management, Essay Example

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Supply chain management has a great impact on all areas of business. It affects customer satisfaction in a way that people get products in time. It also has an impact on cost savings projects and overall productivity. Indeed, a company is not able to produce an income or profits until the product or service is delivered and paid by the customer.

Supply chain management has one single goal: to manage the chain of supply through the system matching it with the demand of the market. This often involves advanced communication among different suppliers and departments, prediction or reporting of production, delivery. The end result should be to deliver the right product at the right time at the lowest possible cost for the customer’s highest level of satisfaction.

While production management and process improvement methods covered previously within the course are useful, if the product does not arrive at its final destination: in the hands of the end-user, the company fails to meet the market demand.

The main challenges calling for effective supply chain management are: global competition, outsourcing of processes and manufacturing, e-commerce operations, shorter life cycles of products, greater complexity of supply chains and environmental concerns worldwide. Further, cost-advantage development needs to be considered through comparing the cost of inventory with the final price paid by customers. The main costs to be monitored are capital costs, storage costs and risk costs related to holding inventory.

The main difficulty the designers of supply chain management face is the “bullwhip effect”. The fluctuation of production within the supply chain, delivery, lead times and market demand are not level, and the more complicated the chain is the harder it is to manage this phenomenon. A close monitoring of capacity utilization, speed of the product going through the supply chain and the variation of demand throughout time is an effective way of overcoming the bullwhip effect.

Supplier analysis and management is another method to ensure that products are delivered in time and the quantities match market demand. As Apple’s example shows, tracking parts and requesting detailed reports, predictions from suppliers is an effective preventive measure used to eliminate faults within the supply chain. Auditing suppliers while maintaining effective communication and relationships is also essential.

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Logistics and Supply Chain Management

The economy of scale and economy of distance, goals for effective multi-channel logistics operation, decision areas in supply chain, functions performed by successful supply chain.

The economy of scale refers to a decrease in the cost per unit weight of the oil and products transported as the shipment size increases. For instance, a high-capacity vehicle can carry a large amount of oil and products, minimizing trips to transport total capacity hence low cost incurred (Anca, 2019, p. 210). However, economies of distance refer to the reduction in transportation cost as the distance increases. The more range the vehicle covers, the cheaper its transportation cost becomes due to fixed price over long distances (Anca, 2019, p. 212). Therefore, the distinction is that economy of scale results from increasing the shipment size while economy distance stems from long distance coverage.

Sale increase through inbound and outbound logistics for a firm to increase its marketability. Inbound logistics refers to activities associated with obtaining necessary inputs from the suppliers. The firm needs to keep tracking products to ensure that there are no delays in its timelines (Azmi et al., 2017, p. 73). Whenever delay occurs in delivering the product, unavailability is realized leading to a reduction in the firm’s production efficiency. Outbound logistics involve a firm delivering its products to its customers. For instance, damages, lateness, and wrong products delivery to consumers lead to product rejection leading to incurring extra costs (Azmi et al., 2017, p. 74). Therefore, proper inbound and outbound monitoring is essential to increase the sale of a firm by supply chain managers for effective operations.

Increasing the effectiveness of a company requires its managers to meet the operation efficiency demands in the supply chain. A manager should ensure that the products are innovatively designed to meet the customers’ specifications to avoid the loss associated with returning them (Azmi et al., 2017, p. 74). Moreover, logistics efficiency can be improved by having adequate delivery facilities during all periods. Well-defined procedures between the consumers and the firm should be enacted to avoid the costs that arise due to failure in agreement (Azmi et al., 2017, p. 75). Furthermore, managers can put both their inbound and outbound freight together to avoid incurring different transportation expenses.

Building a good relationship between the carrier and the retailer involved in the supply process is necessary for proper logistics operations. The success of the management results from the time taken to deliver the product, the total cost incurred, and the transporter’s service towards the retailer. Depending on one carrier may result in running a lot of losses by the firm when there is an interruption. Therefore, the company needs to determine whether to use single or many carriers (Azmi et al., 2017, p. 76). The management should also establish a good guideline with the carrier to aid industrial goals’ achievement.

Improvement of the services rendered to the customers for effective logistics operation of the company is essential. The management needs to meet expectations and specifications from its customers to achieve their objectives. In most cases where the customers return the products, the firm should incur the costs of exchanging the commodity. The firm’s goodwill is essential in maintaining the customers, hence the need to guard it well (Azmi et al., 2017, p. 76). Consumers contribute significantly to the firm’s success in achieving the organizational goals hence the necessity for proper service delivery.

Effective flow of the information is essential in achieving the effective operation of the supply chain. The management should know the inventories in possession, the transit of stocks and what the customers require. The flow of information between the company and the customers should be suitable for proper operations. Furthermore, meeting the objective of adequate knowledge ensures that the firm is operating as per the customer’s specification (Azmi et al., 2017, pp. 74-75). Hence, effective logistic management operation by the leaders requires a reliable communication plan.

Location is an essential element that the supply chain manager needs to consider while planning. Before creating the supply chain, the manager should determine the specific production areas, storage points, and where to deliver the products. For example, accompanying supplying computers to a research organization should strategically raise its retail shops in the nearest town (Liu et al., 2019, p. 29). Hence it is essential to determine a proper area of establishing activities of the firm.

The managers need to decide on the production process of the company before establishing the supply chain. The managers should clearly state the commodity to be provided by the firm. For instance, industry-producing clothes should identify the supplier of cotton as a raw material (Liu et al., 2019, p. 32). Through making a good decision on the factors of production, the supply chain is easily and effectively operated.

The supply chain deals with the shipment of the products making transportation decisions essential. The managers should determine the process of allocating the firm’s product to different markets. For example, the decision should be made on the reliable means of transport like road, air or ship. The cost incurred in transportation needs to be established to decide on the most convenient means of delivering the product to the market (Liu et al., 2019, p. 35). Thus, the transportation decision for a supply chain manager is important.

The managers need to pay attention to the inventory decision in the supply chain. The managers should ensure that stocks are effectively used and maintained. Through proper usage and management of the inventories, running out of stock is eradicated. The setting of the economic order quantity, reorder level, and stock level safety are critical decisions that the managers should establish in the supply chain (Liu et al., 2019, p. 39). By ensuring proper management, the expected working level of the supply chain is achieved.

Operations decisions are vital to supply chain management. For instance, the firms need to establish how they will deal with their customers on the basis of monthly, weekly, or daily timelines. The duration taken to deliver a product to its designated point need to be considered. Management should make decisions on how to deal with the return products and how to treat their customers (Liu et al., 2019, p. 38). Making proper decisions on the operations of the company is essential for achieving the set objectives.

The supply chain plays a vital role in the market among the sellers and buyers. For instance, the purchase of inputs is accomplished through the supply chain. Normally, firms require raw materials to facilitate the production processes. It is hard for the inputs to reach the firm without proper coordination (Ka and Ab, 2019, p. 41). Hence, through the supply chain, the purchase of input is achieved by the firm.

The operation of any company is made easy through the supply chain. For example, forecasting in the supply chain makes the right quantity to be produced for prospective consumers estimable. Approximation ensures that there is neither deficit nor surplus generated by the firm to the market (Ka and Ab, 2019, p. 41). Through proper evaluation in the supply chain, the operations of the firms are made efficient.

A successful supply chain also performs logistics functions. A firm that engages in production does not avail its products to the market immediately. For example, conducive stores should be availed where products don’t get spoiled before being released to the market. Alternatively, customers may not demand all the products at once, forcing the firm to have some in-store (Ka and Ab, 2019, p. 43). It implies that the supply chain ensures that the products are well kept until the consumers’ demand goes high.

Proper management of the resource is a function performed by the supply chain. Through the supply chain, resources are effectively allocated for production and retailing. For instance, the buyers should be identified by their geographical settings and products are distributed according to their preferences (Anca, 2019). Proper allocation of resources results in the reduction of additional expenses that stem from product return (Ka and Ab, 2019, p. 46). Thus, adequate management of the resources by the firm is achieved through the supply chain.

The supply chain also enhances the coordination process of the firm and its customers. Customers need to get in touch with the firm in cases of dissatisfaction with the products delivered. For instance, when a damaged product is delivered, the consumer can return it to the seller through the supply chain (Azmi et al., 2017, p. 74). Moreover, the supply chain coordinates the process from the time the product is issued until it reaches the intended buyer. For instance, in the transportation of oil and gas fuels, the supply chain ensures that the delivery point is reached.

Anca, V. (2019) ‘Logistics and supply chain management: an overview’, Studies in Business and Economics , 14(2), pp. 209-215.

Azmi I., Hamid, N. A., Hussin, M. N. M. and Ibrahim, N. I. (2017) ‘Logistics and supply chain management: the importance of integration for business processes’, Journal of Emerging Economies and Islamic Research, 5(4), pp. 73-80.

Ka, J. M. R. and Ab, N. R. (2019) ‘A review on supply chain performance measurement systems’, Procedia Manufacturing, 30, pp. 40-47.

Liu, W., Wang, D., Long, S., Shen, X. and Shi, V. (2019) ‘Service supply chain management: a behavioral operations perspective’, Modern Supply Chain Research and Applications, 1(1), pp. 28-53.

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BusinessEssay. (2022, October 30). Logistics and Supply Chain Management. https://business-essay.com/logistics-and-supply-chain-management/

"Logistics and Supply Chain Management." BusinessEssay , 30 Oct. 2022, business-essay.com/logistics-and-supply-chain-management/.

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1. BusinessEssay . "Logistics and Supply Chain Management." October 30, 2022. https://business-essay.com/logistics-and-supply-chain-management/.

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BusinessEssay . "Logistics and Supply Chain Management." October 30, 2022. https://business-essay.com/logistics-and-supply-chain-management/.

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Logistics and Supply Chain Management

Logistics and supply chain management are two closely connected models vital for businesses to efficiently and successfully manage the flow of goods and services from suppliers to consumers. Logistics denotes the management of the physical flow of goods from the point of origin to the point of consumption, which may also encompass transportation, storage, inventory management, and other connected activities (Anca, 2019). Logistics aims to enhance the delivery of goods and decrease costs, thus guaranteeing that goods are supplied to the customer on time while in good condition. On the other hand, supply chain management incorporates the broader network of actions involved in the whole supply chain, including production, procurement, and distribution. It encompasses managing the flow of information, materials, and finances from the point of origin to the point of consumption (Anca, 2019). SCM’s purpose is to enhance the supply chain, reduce costs, improve effectiveness, and improve customer gratification. Effective logistics and SCM necessitates the companies to develop strong collaboration and communication among all stakeholders tangled in the supply chain, such as suppliers, manufacturers, distributors, retailers, and customers (Anca, 2019). Data analytics, automation, and digital platforms can also enhance logistics and SCM operations. This can benefit EcoWorld, which seeks to globalize its supply chain processes.

Risks and Benefits of Moving the Supply Chain to a Global Market

Globalizing a supply chain can be overwhelming for any organization but also presents many latent assistances. In the case of EcoWorld, some latent benefits of increasing its supply chain globally are access to new markets, diversification, cost savings, and expertise. As stated earlier, diversification is one of the essential benefits of globalizing the supply chain. By working with suppliers from diverse regions, EcoWorld can decrease its risk of supply chain disruptions. If any supplier meetings a problem, the company can, in return can, move to other suppliers from different areas, thus ensuring that production endures smoothly.

Additionally, it offers the company access to a broader range of resources and materials. Additionally, the company can access new markets by entering the European markets of Latervia and Rombia, thus helping it expand its consumer base and surge revenue. This offers a prospect for EcoWorld to tap into the growing demand for sustainable and eco-friendly products in these new markets. By differentiating its consumer base, the company can also decrease its reliance on the US market, which may be more seasonal demand for its products.

Additionally, the company can achieve cost savings by finding lower-cost suppliers, thus helping it decrease its general production costs. This can be accomplished by taking advantage of the lower production costs in nations like Latervia and Rombia, where the company gets its glass-blowing expertise and other raw materials, thus leading to amplified financial performance, profitability and more competitive pricing. The company can also collaborate with suppliers in diverse locations, offering new insights, innovation and new expertise that can benefit the company. For instance, working with glass-blowing experts in Latervia can improve the value and design of EcoWorld’s products. This can aid the business in distinguishing its products from competitors, attract new consumers and surge its market share. However, despite the benefits posed by globalizing its processes, various potential risks are associated with globalizing the supply chain. These risks include supply chain disruptions, cultural and legal variances, quality control challenges, and cost increases. These risks could arise from new suppliers in diverse locations with diverse cultural practices, legal regulations, trade policies and standards. EcoWorld should conduct detailed due conscientiousness on suppliers, establish effective communication and partnership with them, and monitor the supply chain regularly to guarantee its effectiveness and efficiency.

The Order Winners and Order Qualifiers

Various concepts can help a company achieve a competitive advantage in the industry. Some of these concepts include order winners and order qualifiers. This can be the case for our focal company, i.e. EcoWorld, as order winners and order qualifiers play a substantial part in its global manufacturing and distribution plan. Order qualifiers refer to the minimum criteria a product or service must meet to be reflected by consumers’ valuation (Richey et al., 2022). The order qualifiers of the company may comprise the quality of the hand-blown glass sphere, the health and sustainability of the fish and plants, and the capability of the environment to work with light. These necessities must be met for consumers to contemplate buying the good.

On the other hand, order winners refer to the factors that distinguish a product from its rivals, thus making them more attractive to consumers’ valuation (Richey et al., 2022). Some of the focal company’s order winners could comprise the product’s price, design, and functionality. For instance, EcoWorld could distinguish its products by giving its consumers a broader diversity of designs, customizations, and colours. Moreover, the environment’s capability to be upheld with little effort or maintenance can also be an order winner for the company.

The company can apply these concepts to attain its competitive advantage in the global market as utilizing order qualifiers ensures that the products of the company meet the minimum needs of consumers, thus offering a basic level of satisfaction. However, to truly stand out, EcoWorld must excel in the order winners, which can set it apart from its rivals and fashion a distinctive selling proposition valuation (Richey et al., 2022). EcoWorld should continue conducting market research to comprehend the necessities and preferences of consumers in the Latervia and Rombia markets. This will aid the business in classifying the order winners that are most significant to these consumers, such as design, price, and sustainability. EcoWorld can also apply its sustainable and eco-friendly products as an order winner, tempting consumers who prioritize environmentally-friendly product valuation (Richey et al., 2022). This can be accomplished by guaranteeing that the raw materials and transportation techniques in its global manufacturing and distribution plan are sustainable and eco-friendly.

Total Quality Management

Expanding the global supply chain network can have a substantial effect on the total quality management of EcoWorld. TQM refers to the management method that emphasizes meeting consumer necessities and continuously refining processes, thus improving quality and reducing costs (Anca, 2019). The company should guarantee that all apparatuses of its supply chain are combined, reliable, and meet quality values. Analyzing how the company aims to expand its global supply chain and its effect on TQM includes introducing new suppliers that need to become more familiar with EcoWorld’s quality principles (Anca, 2019). Latervia and Rombia may have diverse quality standards, and their goods may need to meet EcoWorld’s stipulations. The company should find quality contracts with new suppliers ensuring that they follow the set EcoWorld’s quality standards as failure to meet the requirements set by the company may lead to delays in the production process, damage to the company’s reputation, and eventually, loss of customers which can be detrimental to company’s financial performance and market share.

Additionally, expanding the global supply chain network can result in longer lead times, which may distress the TQM of EcoWorld. Raw materials and final products of the company may necessitate transportation through various means, such as aircraft and trucks, which are typically subject to transportation postponements, weather-related issues, and customs clearance. These problems can cause interruptions in the production process and result in missed deadlines. Thus, the company must guarantee that its supply chain is consistent and that contingency plans are in place to address any potential disruptions. Moreover, the company must communicate efficiently with its suppliers and consumers in Latervia and Rombia to guarantee that all necessities are met. Language and cultural barriers can lead to misinterpretations, delays, quality issues, and loss of consumers.

Six Sigma is a data-driven quality development practice that aims to identify and eliminate process defects (Ikumapayi et al., 2020). The company can develop a Six Sigma plan encompassing the following steps. Defining the problem at hand of spoilage during delivery may require sound definition in needs in quantitative terms. A baseline must be founded by tracking the percentage of spoiled products during delivery, the grounds of spoilage, and the charge of spoilage to the business. The company can also measure the data it has collected in great detail (Ikumapayi et al., 2020). The company should collect data on the present delivery process, such as data on transportation and the time that would be taken to deliver its products. The data would be vital in determining the root causes of the problem. Once the data has been collected, the company should analyze it to ensure that it identifies the root causes of the problem. The team can use various tools, such as the Fishbone diagram and Pareto chart, to identify the most substantial reasons for spoilage. After making the necessary data analysis, the company should develop a plan to improve the delivery process. It may encompass changing the methods used by the company to transport its products (Ikumapayi et al., 2020). The final step in the Six Sigma process is control which encompasses establishing a process for monitoring and controlling the delivery process to guarantee that the improvements are continued over time. This may encompass regular temperature monitoring during transportation, regular maintenance of refrigerated trucks, and ongoing training of delivery personnel (Ikumapayi et al., 2020). Thus by following the above-described plan, the company can considerably decrease the percentage of spoiled products during delivery, which would lead to improved customer gratification and reduced costs associated with spoilage. The Six Sigma plan will additionally permit EcoWorld to classify other areas for improvement in their manufacturing and delivery processes, which can further improve their products’ quality and upsurge customer gratification.

Modes of Transportation

Globalization can considerably affect the numerous methods of transportation that EcoWorld applies for its manufacturing and distribution. Some of the various methods that the company can use to move its goods include air transportation which is the fastest mode of transportation that the company can utilize to deliver its products across. It is ideal for delivering high-value, low-weight, and time-sensitive products (Anca, 2019). Additionally, this form of transportation is appropriate for shipping fragile goods like EcoWorld’s decorative environments. However, air transportation is expensively paralleled to other modes of transportation (Anca, 2019).

Moreover, air transportation is subject to weather and air traffic interruptions, which can lead to substantial delays in product distribution. The company can also use sea transportation, a cost-effective form of transportation appropriate for shipping bulky and heavy products. Sea transportation is dependable and has a high carrying capacity (Anca, 2019). However, sea transportation could be faster paralleled to air transportation, and it is subject to delays due to bad weather, port congestion, and customs reviews.

Rail transportation can also be a suitable form of shipping products over land to long distances. One advantage of this method is that it is fast, reliable, and has a high carrying capacity. Rail transportation can also be cost-effective compared to air transportation, and it is less vulnerable to interruptions due to bad weather (Anca, 2019). However, rail transportation is limited by its infrastructure and can be affected by maintenance problems and rail congestion. Road transportation is the most common transportation available for EcoWorld’s products. It is appropriate for transporting products to the final destination, predominantly for short distances (Anca, 2019). Road transportation is flexible and can access almost any location. Conversely, it is subject to road accidents, traffic congestion, and bad weather. A 10% increase in fuel prices could substantially affect EcoWorld’s globalization plans (Anca, 2019). An increase in fuel prices can lead to increased transportation costs for EcoWorld, principally for air and road transportation. Consequently, the business may have to upsurge its product prices to uphold its profitability, which could distress its competitiveness in the industry.

Insurance Costs

It is characteristic that with globalization, there is a tendency to increase insurance costs due to the utilization of numerous forms of transportation across borders valuation (Richey et al., 2022). The transportation of raw materials via aircraft and the final product via aircraft and then truck poses numerous risks, including damage, theft, and loss. Thus EcoWorld will requisite to get insurance coverage to protect against these risks. Utilizing multiple modes of transportation also upsurges the probability of accidents occurring during transportation. Each mode of transportation carries specific risks, such as the possibility of a plane crash or a truck accident. Insurance coverage must be obtained to cover these risks, probably leading to amplified insurance premiums valuation (Richey et al., 2022).

Additionally, the transportation of goods across borders also presents additional risks, such as customs and regulatory compliance matters. Thus, the company must guarantee that they conform to all customs and regulatory requirements in the countries where they operate; failure to do so could result in delays, fines, and legal disputes. Gaining insurance coverage to protect against these risks will increase insurance costs.

Product’s Seasonality

EcoWorld’s products tend to skew towards November/December as it becomes a traditional holiday gift. This can pose a challenge to the company’s profitability and financial performance. Thus the company should adjust its manufacturing and distribution to consider this seasonality (Anca, 2019). The company should consider numerous strategies, including increasing production during the off-season to guarantee an adequate inventory to meet demand during the holiday season. This may necessitate the business to invest in additional manufacturing equipment and hire more workers to yield the necessary inventory.

The company should also adjust its marketing and sales strategies to centre during the holiday season. This could encompass fashioning holiday-themed advertising campaigns and offering special promotions and discounts to inspire consumers to buy their goods as gifts. The company should also consider partnering with retailers to upsurge their delivery channels (Anca, 2019). By working with retailers, EcoWorld can reach a broader consumer base and increase sales during the holiday season. EcoWorld should contemplate offering limited-edition holiday-themed products to create excitement and surge demand (Anca, 2019). This could comprise unique designs or packaging only available during the holiday season. Furthermore, the company should carefully manage its inventory to guarantee adequate stock to meet demand without overproducing and experiencing excess inventory costs. This may necessitate applying an inventory management system to track demand and adjust production accordingly.

Inventory Valuation Method

The company can use various inventory methods to appraise its inventory. One such method the company should consider is using the First-In-First-Out (FIFO) method for inventory valuation (Richey et al., 2022). This method proposes that the oldest items are sold first and values inventory founded on the cost of the oldest items. Since EcoWorld’s products have a clear seasonality, this method would help the company precisely track the cost of goods sold during the holiday season and guarantee they are constantly supplied with the inventory at the end of the season. Creating and maintaining an inventory of a final product incurs numerous costs, such as raw materials, labour, storage, and insurance. Globalization can affect these costs in numerous methods of valuation (Richey et al., 2022). Transportation costs for raw materials and finished products may surge due to longer distances and diverse modes of transportation.

Additionally, tariffs and taxes can also add to the cost of goods. Insurance costs may increase due to the risk of loss or damage during transport. Furthermore, maintaining inventory in numerous places can surge storage costs valuation (Richey et al., 2022). To mitigate these costs, the company can consider negotiating bulk transportation rates with carriers, outsourcing some manufacturing processes to nations with lower labour costs, and applying a just-in-time inventory system to decrease storage costs. The company can also consider agreeing with local suppliers in all markets it has roots in to reduce the costs it may incur while transporting its products.

In conclusion, logistics and supply chain management are two closely connected models vital for businesses to efficiently and successfully manage the flow of goods and services from suppliers to consumers. The management should ensure due diligence in evaluating whether to invest in European counties. This is because it would lead to increased costs such as insurance; thus, it would necessitate the company evaluate whether it would be beneficial to globalize the supply of its products.

Anca, V. (2019). Logistics and supply chain management: an overview.  Studies in Business and Economics ,  14 (2), 209–215.

Ikumapayi, O. M., Akinlabi, E. T., Mwema, F. M., & Ogbonna, O. S. (2020). Six Sigma versus lean manufacturing–An overview.  Materials Today: Proceedings ,  26 , 3275-3281.

Richey, R. G., Roath, A. S., Adams, F. G., & Wieland, A. (2022). A responsiveness view of logistics and supply chain management.  Journal of Business Logistics ,  43 (1), 62–91.

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Supply Chain and Logistics Management

Supply chain management (SCM) and logistics are closely related but distinct.

SCM involves handling all activities related to the flow of goods and services. This includes everything from getting raw materials, converting them into products and delivering them as products to customers. An organization collaborates with suppliers to ensure the product journey from raw materials to end users is seamless. 1

On the other hand, logistics is a fundamental component of SCM. It deals with the physical movement and storage of goods within the supply chain. The goal is to ensure products are delivered to the right customer at the right time and in the right condition. 2

Effective supply chain and logistics management reduces costs. It also improves production efficiency.

Read on to discover the key components, strategies and optimization techniques that make supply chains efficient.

Key Components of Supply Chain Management

Supply chain management activities are complex, but they can be broken down into five basic components:

Planning involves forecasting demand, determining the required material to make a product and creating a production schedule. Essentially, it’s figuring out what needs to be done and when. Big enterprises often use enterprise resource planning (ERP) software to streamline this phase of supply chain management. 3

Sourcing entails collaborating with suppliers who provide raw materials throughout the manufacturing process.

Different industries have varied sourcing requirements, but generally, business leaders should aim to partner with suppliers who meet the following conditions:

• Offer fair prices
• Provide parts that meet specifications or quality standards for the production of a particular item
• Have a proven record of delivering resources on time, especially if the raw materials are perishable
• Are flexible and reliable in emergencies such as during a sudden increase in demand

Considering the above requirements can help supply chain management professionals build effective supplier relationships critical for long-term business success. Additionally, optimizing inbound logistics–the transportation processes involved in the flow of resources from suppliers into an organization–is vital. 3

This is the core of supply chain management, where an organization uses its systems, workforce and machinery to transform raw materials into finished products. This may involve manufacturing, assembly, testing and packaging. 3

Distribution or Delivery

Distribution is getting the finished products to the customer (outbound logistics). This involves warehousing, transportation and order fulfillment. Effective distribution channels ensure products reach consumers on time without any physical damage.

Additionally, organizations should strive to diversify their delivery methods. Doing so ensures that alternative channels can be used when one distribution method becomes unavailable due to unforeseen events such as natural disasters. 3

Return Management

Return management deals with customers' return of products, either due to defects, damage or simply a change of mind. This involves establishing return policies, managing reverse logistics processes and implementing strategies to increase customer satisfaction. 3

Common Supply Chain Strategies

A supply chain strategy aims to optimize the flow of goods from raw material suppliers to the end consumer. The strategies below can help businesses minimize costs, stay competitive and streamline their global supply chain management:

• Lean Supply Chain Strategy: This approach maximizes efficiency and minimizes waste. Its five principles (value, value stream, flow, pull and perfection) help companies create high-quality commodities, only produce what’s needed to avoid overproduction and eliminate bottlenecks so that supply chain processes occur smoothly and products reach customers swiftly. 4
• Agile Supply Chain Strategy: This strategy emphasizes making supply chains flexible or highly responsive to changing market dynamics. It allows companies to react quickly to unexpected events, such as sudden shifts in customer demand. Faster response to changes helps companies adjust production based on what’s happening now. 4
• Hybrid Supply Chain Strategy: This approach combines lean and agile strategies. It aims to make a supply chain both flexible and efficient. 5

Techniques for Logistics and Supply Chain Optimization

Below are the top supply chain and logistics optimization techniques:

Efficient Inventory Management

Inventory management involves procuring, storing, using and selling an organization’s inventory (raw materials and finished products). There are multiple techniques for handling these processes affordably and efficiently.

One of them is Just-in-Time (JIT) inventory management. It involves ordering raw materials only when they are needed for production or sale. This level of inventory control keeps the amount of inventory on hand to a minimum, reducing storage and insurance costs. It also eliminates the expenses of storing and discarding excess inventory. 6

Another technique is economic order quantity (EOQ), which helps companies establish their optimal inventory levels. EOQ enables organizations to identify how much raw materials or finished products to hold to maximize inventory while keeping storage costs down. It also reveals how often a business should reorder inventory to avoid running out of stock. 6, 7

Reliable Demand Forecasting

Demand forecasting involves predicting how much of a product customers will want. When done accurately, it helps organizations understand demand patterns and then use the insight to adjust their production, inventory and distribution strategies accordingly. 8

With the increasing pressure to make demand planning and forecasting more accurate, multiple companies rely on predictive analytics solutions powered by artificial intelligence (AI). AI-driven supply chain analytics solutions can reliably identify patterns in customer data and reveal insights to anticipate the future more precisely. According to McKinsey, AI-powered forecasting in supply chain management can reduce prediction errors by up to 50%. 9

Transportation Optimization

Optimizing outbound logistics keeps organizations on top of product movement in the supply chain and enhances customer service. Companies can achieve this by implementing a transportation management system, such as Freightflow.

The software creates transparency by allowing organizations to track inventory throughout the supply chain. As a result, they know exactly where their shipments are at all times and can share the details with customers. That way, enterprises can quickly provide consumers with updated delivery dates if there’s a delay or any other issue in the supply chain.

The technology is also useful for a business that delivers products through multiple modes of transportation. With it, it’s easy to track commodities transported by air, road, and sea—all on a single platform. 10

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• Retrieved on March 19, 2024, from ibm.com/topics/supply-chain-management
• Retrieved on March 19, 2024, from forbes.com/sites/katevitasek/2023/08/18/whats-the-difference-between-logistics-and-supply-chain-management-and-why-it-matters/
• Retrieved on March 19, 2024, from investopedia.com/terms/s/scm.asp
• Retrieved on March 19, 2024, from dfreight.org/blog/supply-chain-strategy-a-comprehensive-guide/
• Retrieved on March 19, 2024, from inboundlogistics.com/articles/hybrid-supply-chain/
• Retrieved on March 19, 2024, from investopedia.com/terms/i/inventory-management.asp
• Retrieved on March 19, 2024, from shopify.com/retail/economic-order-quantity
• Retrieved on March 19, 2024, from gep.com/blog/technology/how-to-plan-supply-chain-demand-forecasting
• Retrieved on March 19, 2024, from mckinsey.com/capabilities/operations/our-insights/ai-driven-operations-forecasting-in-data-light-environments

Retrieved on March 19, 2024, from blog.hubspot.com/service/transportation-management-system

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Essay on Supply Chain Management

Introduction

Supply Chain Management is the management of the gradual flow of goods, services, and production, which include the movement and proper storage of raw materials, logistics, work-in-progress inventories, and finished goods or products. Sunningdale Tech Ltd is a manufacturer of audio equipment, steel moulds, and plastic injection products, among other equipments in Singapore. The purpose of this essay is to analyze as a supply chain manager of Sunningdale Tech Ltd, the effectiveness of the four key flows in supply chain management; the making process, and the supply chain forecasting and all relevant improvements according to the theories and concepts in supply chain management (Davis, 1993).

Sunningdale Tech Ltd is a manufacturing organization focused on building and selling mould and plastic injection products. The company was founded on the December 5, 1995, and the headquarters is located in Singapore. This is one of the leading producers of precision steel moulds in Singapore. They are responsible for designing, marketing, exporting, and managing manufactured technological products like car audio equipment, steel moulds, and plastic injection products; they render product design consultancy, mold flow services, selling of dies, tools, jigs, fixtures, and other plastic components, and project management. Their divisions are Healthcare, Automotive, Information Technology, and Mould Fabrication. Each segment produces a specific product or service; Automotive division mainly produces faceplates for audio systems and climate control, exterior antenna covers, steering switches, and speedometer equipments. The Healthcare division produces scoops, drug delivery, diagnostic devices, and caps. The Information or Consumer Technology division renders water filtration products, grooming products, and inkjet cartridges. The Mould Fabrication segment designs and manufactures various moulds that are also used for manufacturing of plastic injection parts. There are about 28 branches around the world, with over 872 employees. They are able to generate over 120 companies to supply products to on regular basis, in countries like USA, Malaysia, Mexico, and Latvia.

The Key Flows in Supply Chain

The manager of the supply chain is responsible for keeping track of the movement of products, information, cash, end-to-end flow of goods, and return of products. As a supply chain manager of Sunningdale Tech Ltd manufacturing company, there is a role to oversee and manage every stage of the production flow, from purchasing of raw materials to the delivery of the final product, timely production, as well as coordinate the storage of the product. Flow of products in the supply chain is the movement of goods from the organization to various customers across the world.

Sunningdale Tech Ltd work in a very effective production flow within the supply chain management process, this is done by demand planning and product planning, where a specific number of Sunningdale Tech Ltd products are produced within the various factories across many countries. The products are stored following a specified schedule of the organization and transported to larger warehouses of Sunningdale Tech Ltd Company as an inventory hold. The goods are carefully evaluated and transported to various warehouses of retailers of the company in different locations and then get to the various retail outlets of Sunningdale Tech Ltd, the products are then delivered to customers at various point of delivery.

Sunningdale Tech Ltd Company Information flow is very important in supply chain management because this information flow serves as the link between each stage in the supply chain management. There are effective IT technological tools that help enhance the information flow within the supply chain process (Li, et al. 2011). The use of computers and the internet help keep track of information and improve the performance of the organization

Sunningdale Tech Ltd Company cash flow relates to how payments are made based on timing and frequency of payments to suppliers and from customers, vice versa, invoicing steps for customers, how accounts are managed. The flow of cash perspective in supply chain management process can be specified into cost and investment expenses, and the fund or revenue from sales. The cost is the various expenses incurred and investment relates to the payment of various expenses incurred by the organization. Costs are incurred during the supply chain process and contribute to the profitability of the business and require settlement (Patnayakuni, et al. 2006).

As a supply chain manager, the reduction of cost and increasing revenue or fund are very important. Cash expenses are monies paid by Sunningdale Tech Ltd Company to keep the organization operating and revenue cash flow is the movement of monies from customers to the organization. To enable the company to gain profits, revenue must always be higher than the cost incurred. Payment are arranged according to organization’s plans, schedules, credits, and other financial arrangements to receiving cash from the public and in paying expenses of the business are gathered annually and recorded. There is a need to manage various financial flows of the organization.

Inverse flow is the return movement of goods from customers to the company and how the organization refund and collect these goods back into the company safely. Inverse flow of goods from customers or retailers made by receiving information related to any problem of the good to be checked and solved. The return flow passes from the customer to the vendor, then to the retailer, and shipped to the Company. After the correction is made, the product is sent back through the same process to the customer with a discount to enhance customer satisfaction.

(Pedrosoa & Nakanob, 2009)

The Make Process

The Sunningdale Tech Ltd Company have a specified production planning and make process for developing goods for the organization and manufacturing of the organization’s products. This ensures that all resources, investments, and raw materials are enough and accessible for producing goods and services in the organization. Activities involving measures taken as a supply chain manager in directing, regulating, and controlling various productions of the organization is arranged and rolled out accordingly.

The make process is a very important aspect in supply chain management and this requires gradual important steps in manufacturing goods and services in the organization. The success and wellbeing of the organization is linked to tallying the production level of the organization to the resources to produce these organizations. The resources should be enough to facilitate the production of goods and services for the organization successfully. Sunningdale Tech Ltd require appropriate allocation of resources including, workers, raw materials, production machines, product deliveries, transportation of goods to customers, and purchasing raw products from suppliers are done during production planning

The way taken by various products into the organization is arranged and designed to facilitate the movement of products from suppliers to the company. After identifying the routing process of goods, the execution is when customer’s orders are delivered to their locations successfully. This will help avoid frustration and delay in order execution, production that moves with a good plan always help in preventing customer disappointment and help to improve their satisfaction. Good production planning involves the production of the right goods, foreseeing the future, analyzing, and using potential manufacturing plans to achieve set goals. Allocation of resources is done by assigning team members the right task and machines to operate (Longo & Mirabelli, 2008).

Sunningdale Tech Ltd should have proper planning of technological material requirement to be able to analyze needed input resources, components and materials required to produce various products in the organization. The production planning schedule is a widely used system that helps in improving productivity of a given manufacturing organization (Håkan & Göran, 2004).

This planning schedule helps in advancing and improving the production performance of the organization. The manufacturing requirement planning uses information from expenses or cost of materials, production, and flow of goods to understand the needed inputs and various costs during the manufacturing process. Planning the arrangement of materials and other material components of the organization will help enhance the manufacturing success of the various products along with the quantity of the product, with appropriate determination of the right items to produce. The Company identifies the number of confirmed orders and production to make during operations.

As a supply chain manager, my duty is to ensure that the organization have access to needed materials and resources for production of products. There are several products required by customers from the organization, and with demand and order description, I will be able to check and allocate the right materials for production in the organization. Demand directly affects the quantity of goods to produce for customers in general. I will be able to setup a strategic planning system that will be able to track products and supply chain production in the organization.

(Håkan & Göran, 2004).

The Supply Chain Forecasting

Forecasting model in supply chain management relates with the upcoming events expected to take place in the market and production system in the future. This is just like predicting expected future of the organization in a qualitative or quantitative way. The supply chain forecasting methodology and models examine the future expectations and outcome of how demand and supply range will project, how the customer’s reaction towards a specific product will change, and the change in price level of goods in the market (Singh, et al. 2006). There are benefits the organization derives from supply chain forecasting, including helping to prepare for a new condition arising.

The supply chain forecasting will guide the Company know the right goods suppliers are willing to offer the organization, and how these goods will determine the performance of the Company, in order to take necessary measures immediately before becoming too late. Various evaluations are conducted on the market to provide a complete position of the organization in the near future. In forecasting, especially in supply chain management, factors like weather, technology, research, among others relate with the supply chain management of the organization. This describes how these factors will influence consumers demand and interest in each week, months and years (Helms, et al. 2000).

Price forecasting model is a description of supply and demand influence on prices of goods and services in the market. Situations such as a low income, bad road and weather conditions, and poor environmental conditions could lead to a reduction in the price of Sunningdale Tech Ltd products like precision steel moulds, car audio equipment, plastic products and tools, among others. The price forecasting model helps businesses to know when necessary to cut down prices or increase prices and this will help the Company to know when to maximize the price level of products and the time to reduce the price to fit well in the market at a given time (Gattorna & Jones, 1998).

Another model called demand forecasting model that allows organizations to keep the right number of stocks enough to satisfy all demands. The demand forecasting model will help the Company to utilize time, resources, and efforts properly to improving the production of goods at the right time. The demand forecasting model is very helpful in identifying the interest of the public and behavior of the market demands, including preference, trends, seasonal goods, personality, and behavior of the customers (Guanghui, 2012).

Opinion forecasting model is a qualitative forecasting model that describes how the opinions of experienced experts make meaningful analysis and projections into the future without statistical data and where there is no available data to be measured. This model uses an easy and quick method to anticipate future market trends and structure. The market research model is a qualitative forecasting module that uses market research and analysis to forecast future events. This can be done by staff, firm members, and the Company will have researchers to use research opinion poll, telephone, interviews, and questionnaires.

Various quantitative and qualitative model of forecasting relating to average moving model goods, economic model, opinion of experts, research model, and strategic model are classified based on the quantitative and qualitative analysis of the supply chain forecasting model. The moving average model uses the quantitative forecasting model to analyze data and understand data about the market prices, sales, demands, supplies, and many more. The econometric modeling is about how regression analysis and independent regression is measured to determine the influence of an economic variable to another and to understand the outcome of the analysis (Helms, et al. 2000).

(Rogelio & Watson, 2009)

Production across the various four key flows of supply chain management and how to serve as a supply chain manager of Sunningdale Tech Ltd is steep into the making process, and the supply chain forecasting in order to enhance the movement and production of products along the supply chain management process. The various flows of products along the supply chain management process like information flow, cash flow, product flow, and return of goods are major duties of the supply chain manager in order to ensure the positive operation of the business in the organization. Sunningdale Tech Ltd ensures that goods flow from one stage to the other till customers acquire their products and appreciate the product, and the supply chain manager also has to improve the relationship between customers and the organization through technical, brand, and research development. The supply chain manager also ensures that the right supply chain forecasting model such as the demand forecasting model or price forecasting model is used correctly. It is important that technological tools are encouraged and used to induce the positive performance of Sunningdale Tech Ltd supply chain management and maximize information and transactional management potential of the manufacturing company. This helps in improving the effectiveness and efficiency of the business and supply chain management.

Bibliography

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Gattorna, J., & Jones, T. (1998).  Strategic Supply Chain Alignment: Best Practice in Supply Chain Management.  Vermont: John L. Gattorna. Retrieved from https://books.google.com.gh/books?hl=en&lr=&id=pS03aP72VR8C&oi=fnd&pg=PA1&dq=KEY+FLOWS+IN+supply+chain+management+&ots=Uuo2-b6Tx2&sig=OyA6s1Z7xK46UOykRAqNMuAKSgg&redir_esc=y#v=onepage&q=KEY%20FLOWS%20IN%20supply

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Guanghui, W. (2012). Demand Forecasting of Supply Chain Based on Support Vector Regression Method.  Procedia Engineering Journal , 280-284. Retrieved from https://www.sciencedirect.com/science/article/pii/S1877705811065441

Håkan, H., & Göran, P. (2004).  Supply Chain Management: Teh Logic of Supply Chains and Networks.  Bingley: Emerald Group Publishing Limited. Retrieved from https://www.ingentaconnect.com/content/mcb/ijlm/2004/00000015/00000001/art00002

Helms, M. M., Ettkin, L. P., & Chapman, S. (2000). Supply chain forecasting – Collaborative forecasting supports supply chain management.  Discover Journals, Books & Case Studies , 1463-7154. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/14637150010352408/full/html

Li, J., Chen, J., & Wang, S. (2011).  Risk Management of Supply and Cash Flows in Supply Chains.  London: Springer Science. Retrieved from https://books.google.com.gh/books?hl=en&lr=&id=2gh9BHT9NRkC&oi=fnd&pg=PR3&dq=KEY+FLOWS+IN+supply+chain+management+

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Longo, F., & Mirabelli, G. (2008). An advanced supply chain management tool based on modeling and simulation.  Computers & Industrial Engineering Journal , 570-588. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0360835207002100?casa_token=HeksMSixGbQAAAAA:w05VLMIDWGIkA2xUQJodfMDZi5cE4Sre72m

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Patnayakuni, R., Rai, A., & Seth, N. (2006). Relational Antecedents of Information Flow Integration for Supply Chain Coordination.  Journal of Management Information Systems , 13-49.

Pedrosoa, M. C., & Nakanob, D. (2009). Knowledge and information flows in supply chains: A study on pharmaceutical companies.  International Journal of Production Economics , 376-384. Retrieved from https://www.sciencedirect.com/science/article/abs/pii/S0925527309002011?casa_token=umKrV-90DUQAAAAA:AKgRfA9Wzbnb1i2S-hjN3E1d0rVMiDqzrxaTfavIcnC2SKz0gqwoPymlOS2s53eL0mP6oBMQQw

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Australia , Companies , Logistics , News , Supply Chain , Supply Chain Management

Stay cool, stay informed.

The world of logistics is forever evolving, and the new Scan4Transport standards make it even easier for the industry to manage temperature-sensitive consignments. With freight volume on the rise, universal barcoding solutions are becoming the need of the hour.

The vast and intricate world of the freight and logistics industry is witnessing a surge, both in terms of volume and diversification. With more players entering the scene —particularly those focused on last mile logistics — and the increasing complexity due to customer requirements and the fragmented nature of the industry, the need for standardised systems has never been more evident. Given the challenges, such as limited connectivity and the absence of electronic information exchange, there’s a pressing demand for interoperability and capturing key transport instructions via barcodes.

SCAN4TRANSPORT’S ONGOING EVOLUTION

Michiel Ruighaver of GS1 sheds light on how the logistics world confronted challenges in the past: “Around 2017, the industry approached GS1 about the challenges caused by the myriad of transport labels across the industry. Each carrier had its unique format. So, they spoke different ‘languages’ – to use an analogy.”  

Such inconsistencies were problematic, especially for large shippers dealing with multiple transport companies. That’s why Scan4Transport was introduced as a “standard format, initiated in 2019, with a global group of shippers, logistic service providers and solution providers from 21 countries. This standardised the transport industry’s language.”  

Traditional information like delivery addresses was incorporated directly into the logistic label’s 2D barcode, aiding in first- and last-mile deliveries. However, Michiel says there was an emerging challenge: the inability to encode freight temperature requirements in a standard format.

TAKING THE TEMPERATURE  

In the logistics sector, there are instances when providers deal with freight without an electronic manifest, relying instead on paper or waiting for the electronic version. In such cases, manually entering transport requirements becomes the norm. While the existing Scan4Transport standards have successfully managed requirements such as Ship-To Address or Authority to Leave, the introduction of Freight Temperature Requirements has been a game-changer.  

“Now that we have a standard for it, many more carriers can adopt it,” Michiel says. “The main goal is to provide all relevant information in a scannable format, minimising errors.

“These new standards aren’t just about maintaining temperature requirements. They bring a transformative change. For instance, in the past, temperature-sensitive freight might have a label that changes colour when the temperature goes above a set limit. However, you’d only know there was an issue after the fact. Now, carriers can capture the temperature requirements electronically, allowing for proactive measures.”  

This proactive approach ensures that the logistics companies remain ahead of potential challenges, drastically reducing points of failure.

INDUSTRY DEVELOPED AND IMPLEMENTED  

It was essential to involve various industry leaders in the development of these standards. Michiel emphasises the collaboration, noting that players like Freightways, 4Technology, Escavox, and the University of Melbourne played pivotal roles in ensuring the Freight Temperature Requirement AIs were a success.

Implementation of the new temperature AIs is relatively simple for those already utilising the original Scan4Transport standards – but for those who haven’t, they should begin that journey today.  

“It’s relatively simple – as a common business language should be,” says Michiel. “With a standardised approach, parties scanning a barcode can see whether a temperature encoded in a barcode, for example ‘0 degrees,’ is a minimum or maximum temperature for the freight due to GS1 application identifiers (qualifiers) used to define the data. Having standards simplifies the implementation process compared to proprietary formats which vary from company to company. If you setup your system using GS1 standards , future enhancements become easier than proprietary systems.” With GS1’s Scan4Transport standards, it’s like updating a dictionary: “Every new year, a few new words come out.”

Michiel also touches upon the question of why there is a particular emphasis on temperature control now.  

“Many businesses aim to improve quality and reduce waste. A robust approach to temperature control helps in this endeavour,” Michiel says. He further adds that enhanced visibility in the supply chain can mitigate waste. “Take fresh produce suppliers, for instance. If their products go outside a certain temperature range, it reduces the shelf life. Fresh produce and dairy products might have a specific shelf life, but if subjected to inappropriate temperatures, their ‘use-by’ date shrinks.”

Focusing on the food and beverage supply chain specifically, Michiel notes that businesses often have to navigate a maze of regulatory requirements. Different countries have varied requirements for demonstrating traceability, safety, and quality.  

“GS1’s global standards act as a bridge,” Michiel notes. “They provide a global standard which enables businesses to demonstrate compliance and simplify international trade, irrespective of where their products are headed.”

Furthermore, as trade agreements evolve and consumer demands shift, the industry needs to remain agile. Michiel believes that GS1’s continuous evolution and adaptation to changing market needs position it as an indispensable ally for supply chains – including food and beverage, pharmaceuticals, and many others.

To fully understand the potential of the Scan4Transport’s new application identifiers, one only has to look at the industry’s trajectory. With the rising demand for temperature-specific freight handling and the collaborative spirit of global logistics leaders.  

The future, it seems, is looking increasingly cool.

For more information on GS1, click here .