Supply Chain Management and Roles of Logistics

Supply Chain Management
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Chapter one: Supply Chain Management and Roles of Logistics
Article 1: Importance of logistics and supply chain management in the enhancement of Romanian small and medium-sized enterprises.
This article explains how logistics and Supply Chain Management (SCM) can be used as a tool to develop activities of Small and Medium Enterprises (SMEs) aiming at creating a good business organization and additional business chance. The 2008-2009 world economic crisis led to adverse effects that caused a high unemployment rate and also weakening of the Romanian Leu (RON). Therefore, this created a need to develop and transform the SMEs. According to Lakatos and Németh (2013), the use of SCM and logistic tools is one of the best ways to improve businesses.
Recent studies have shown that logistics and SCM are the key opportunities to improve the success and competitiveness of companies. They have displayed significant progress of SMEs in Romania. The SMEs businesses usually concentrate their operations on particular functional markets while operating on distinctive supply chain management. For the SMEs to have a competitive nature, they usually have competitions within their supply chain.
The SMEs can attract both negative and positive effects of logistics and SCM tools. The tools can lead to the supply of quality, cost, client service, leverage, and reduced risk repayments for SMEs. On a negative note, they might hurt the SMEs by exposing them to control and managerial hazards and also reducing private differential benefits. The SMEs having efficient logistics and SCM will improve their competitiveness and maximize their success in the market. Therefore, the success organizations obtain from achieving SCM will have advantageous effects on the approach status thus developing trends towards the implementation of SCM by several businesses. This trend will affect the SMEs and the challenges would make them grow primary skills and application of well-organized logistic activities.
In the year 2008, the article indicates growth mainly originating from demand created by companies that had moved part of their SCM with an aim of lowering costs of fighting slump in the economy. The transport sector at that time in Romania was mainly dominated by the road network, followed by rail and lastly the water (river) transport. The transportation and storage area sectors were dominated by microenterprises followed by small enterprises. The medium enterprises had the least percentage.
The study further reveals how logistic services and SCM can be instrumental to businesses operating in the Roman market. For them to compete, they must focus on the supply chain management procedures and logistics, because modern technologies provide a very good platform for market opportunities. The success of replicating global companies’ supply chain lies in their ability to trade goods across the borders at affordable prices consistently. Therefore, to connect the world and the Roman economy, much emphasis should be put on improving logistics and SCM. The SMEs having well-planned logistics and SCM will be greatly advantaged therefore achieving success in both competitiveness and abundanc...