Murphy and Wood (2011, pp.20) suggest that “logistics can play an important role in a nation’s economic growth”. The authors have illustrated four types of economic usefulness or utility that adds value to a product or service. These include: 1. Possession utility 2. Form utility 3. Place utility 4. Time utility, and Logistics activities play a critical role in adding value, particularly time and place utility. Hence, warehousing is an essential part of any logistics system. It is a major logistics activity, but, more recently, the provision and use of distribution centres has become more common. In relation to warehouses and distribution centres Grant et al (2006, p229) state, “The term distribution center (DC) is sometimes used, but the terms are not identical. Warehouse is the more generic term.” Many organisations have adopted Distribution Centres (DCs) as a means of ensuring they achieve their service proposition at least total cost. Organisations such as Kellogg’s, BMW, Kimberley-Clark and Arnott’s are examples that have been discussed in trade journals (for e.g. see MHD Supply Chain Solutions – via library Your Task Research academic journals, textbooks, trade journals and other credible references to analyse the operations conducted by various DCs and respond to the following issues (giving examples): 1. Describe what you understand by the term ‘logistics value proposition’. 2. Define the terms ‘warehouse’ and ‘distribution centre’ and describe the role of each in adding value to an organisation’s products and services, particularly in terms of utility. 3. Discuss the differences between warehousing and distribution centre operations. 4. Describe the role and function of three of the DC described in MHD Supply Chain Solutions. Analyse the role of the DC in ensuring overall quality of the products provided to its numerous customers. View Less >>
Logistics activities play a critical role in adding value, particularly time and place utility. Hence, warehousing is an essential part of any logistics system. It is a major logistics activity, but, more recently, the provision and use of distribution centres has become more common. In relation to warehouses and distribution centres Grant et al (2006, p229) state, “The term distribution center (DC) is sometimes used, but the terms are not identical. Warehouse is the more generic term.” Part 1 Logistics Value Proposition The key to achieving logistical leadership is to master the art of matching operating competency and commitment to key customer expectations and requirements. The customer commitment in an exacting cost framework is the logistics value proposition. The uniqueness in the commitment for a selected group or an individual customer is the value proposition to that customer. In the common trade parlance, one can obtain strategic competency by adding value to the customers by catering them specially. In order to cater them, a well designed and well operated logistical system can help them achieve competitive advantage. The work of a logistical value proposition is a vicious circle which can be understood with the help of a diagram as presented below. Get solution

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