Logistics Management: Supplier, Manufacturer, Retailer

Logistics management: Manufacturer perspective
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Logistics management: Manufacturer perspective
Logistics management is an essential aspect of supply chain management (Wagner, Jönke & Eisingerich, 2012). This paper provides a description of the global market forces, strategies, and supply chain from the perspective of the manufacturer. The paper also describes development chain and risks from the manufacturer’s perspective.
Global market forces
Global market forces basically include the opportunities that foreign customers create and the pressures that are created by competitors in foreign markets. It is worth mentioning that the presence of foreign competitors within the home markets of a manufacturer could significantly affect the manufacturer’s business. Autry, Zacharia and Lamb (2011) reported that much of the demand growth that is available to manufacturers these days is in fact in the emerging and foreign markets. There is a rising demand for products worldwide through the international proliferation of information. Certain markets typically drive advancements in technology in particular areas. Manufacturers are compelled to make and enhance innovative products and technologies. Such cutting-edge products could be utilized by the manufacturer to maintain or increase its market position in other regions or areas in which the markets are not as competitive (McGinnis, Kohn & Spillan, 2013).
Risks
Offshoring and outsourcing by a manufacturer mean that the supply chain is more diverse geographically. This exposes the manufacturer to various risks. Recent trends towards Just-In-Time (JIT), lean manufacturing, and cost reduction mean that in a progressive supply chain of a manufacturer, low levels of inventory are maintained. In case of any unforeseen disasters, following this sort of strategy could lead to a shutdown of production lines owing to lack of parts inventory or raw materials (Sezhiyan & Nambirajan, 2011). The main sources of risks for a manufacturer are as follows:
Source of riskType of risk/characteristic Natural disasterUncontrollable, unknownEpidemicsUncontrollable, unknownGeopolitical risksUncontrollable, unknownTerrorist attacksUncontrollable, unknownCurrency fluctuationsUncontrollable, knownPort delaysUncontrollable, knownMarket changesUncontrollable, knownPerformance of the supplierControllable, knownForecasting accuracyControllable, knownExecution problemsControllable, known
There are a number of factors that impact the manufacturer’s exposure to risks, including government reactions, supplier reactions, competitor reactions, and customer reactions. The manufacturer can manage unknown risks by investing in redundancy to effectively respond to unforeseen events, creating an adaptive supply chain community, and increasing quickness in sensing as well as responding to risks considering that speediness in sensing and responding to any risks could aid the manufacturer in overcoming unforeseen any problems with supply (Wagner, Jönke & Eisingerich, 2012).
Development chain
During business launch, the manufacturer needs to develop a good logistics network. A development chain al...