Traditional Focus on Outbound Transportation Logistics, Why Essay

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traditional focus on outbound transportation logistics, why are more organizations taking a closer look at the savings and benefits that can be generated from greater efficiency on inbound transportation logistics?

The biggest reason why a number of corporations are placing more of an emphasis on inbound logistics is because of: globalization and improvements in technology. These elements are important, because they are providing firms with the tools they can use to: increase their productivity and profit margins. At the same time, the addition of new competitors in a particular industry has meant, that there is a greater focus on finding ways to be able to maintain their market share. (Chatur, 2006) (Gourdin, 2006, pp. 185 -- 202)

As a result, a number of different corporations have begun to concentrate on just in time inventory management (JIT). This is when manufacturers will use a host of different tools to objectively determine how they can be able to monitor what products are in demand. While simultaneously, being able to control their costs of producing different goods and services they are receiving through inbound logistics. Those firms that are focusing on these areas can effectively adapt to the changes that are taking place. (Chatur, 2006) (Gourdin, 2006, pp. 185 -- 202)

These different elements are significant, because they will allow a company be able to control their costs. As, this will have a dramatic impact on their overall profit margins and the ability of the firm to: offer products that address the needs of consumers. Once this takes place, it means that they can be able to realize the biggest benefits of maintaining their dominance in various sectors. Over the course of time, this concentration on inbound logistics helps a firm to be able to: evolve with these changes and remain a viable entity inside the sector. (Chatur, 2006) (Gourdin, 2006, pp. 185 -- 202)

Why are more and more organizations viewing 4 PLs as solutions for helping to optimize inbound logistics?

The reason why most companies are viewing the 4 PLs as a solution to optimize inbound logistics is because they are helping to: improve efficiency and control.

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This is based on the fact that this approach is adding an extra layer to the structure of the business itself. As, it is allowing executives to see the impact of their supply chain on: costs and their ability to adapt to changes that are taking place. The way that this helps to control their costs is by providing: an effective way of monitoring their supply chain and analyzing what kinds of resources are being utilized. Once this occurs, it means that managers can be able to determine what elements in the production process are leading to dramatic increases. As, a firm has the ability to: more effectively adapt to changes in the marketplace. This is because the 4 PLs are telling them what specific adjustments they need to make in their production process and the kinds of goods that are being produced. Over the course of time, this allows a corporation to become more competitive and respond to the needs of consumers. (Dutton, 2009, pg. 20)

These elements are important, because they helping a firm to become more alert. As, the 4 PLs are telling them on real time basis what is happening with: their organization and its supply chain. For managers, this means that they have the capability of understanding the needs of their customers and the marketplace better. At which point, they can make adjustments to their supply chain and the resources are being utilized to manufacture the final product. Once this occurs, it means that a firm is able to respond to numerous changes and they can maintain their dominance in a host of different sectors. This allows them to be able to adapt more quickly to….....

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