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Global logistics management under risk and uncertainty
Abstract: The economic globalization has promoted the implementation of the marketing and logistics strategy of the multinational corporations within the global, and the restructuring and re-arrangement of the value chain has proposed more new requirement for the global logistics management. Global logistics management has come into being with the development of the internationalized economic development, and it is an extensive management theory of the traditional logistics management.However, http://www.ukassignment.org/lxslw/ the cost of the traditional logistics is parallel to the economic efficiency that has been achieved by the traditional logistics strategy tough there are many factors that affect its implementation. It is similar that there are many elements that would exert effect upon the application and implementation of the global logistics management. As the global logistics management is the main trend of the logistics, and there are no countries that could escape from it. This thesis has analyzed the risk and uncertainty that lie in the global logistics management and propose strategies for the development of the global logistics management. The author has put forward many recommendations for reducing of the risk and uncertainty of the global logistics management by means of investigating into the top four successful global logistics corporations worldwide.
Key words: global strategy; global logistics management; multinational corporations
Table of contents
Abstract……………………………………………………………………1
Table of contents…………………………………………………………..2
Chapter 1Introduction……………………………………………………..4
1.1 Research background………………………………………………….4
1.2 Research objectives……………………………………………………5
1.3 Rationales for the work………………………………………………..6
1.4 Organization of thesis…………………………………………………6
Chapter 2 Literature review……………………………………………….7
2.1 Global logistics management………………………………………….7
2.1.1 Overview of GLM…………………………………………………..8
2.1.1.1 Development phases of global logistics ………………………….9
2.1.1.2 Global logistics characteristic……………………………………10
2.1.1.3 Form of the global logistics………………………………………12
2.1.1.4 GLM……………………………………………………………...13
2.2 Significance of marketing logistics…………………………………...14
2.3 Relationship between GLM and International trade …………………15
2.4 Global logistics system ……………………………………………….16
2.4.1 Order processing ………………………………………………….16
2.4.2 Warehousing…………………………………………………………17
2.4.3 Inventory control and management………………………………….18
2.4.4 Commodity inspection………………………………………………..18
2.4.5 Transportation…………………………………………………………19
2.4.6 Information monitoring ………………………………………………19
2.5 Global logistics risks……………………………………………………20
Chapter 3 Methodology……………………………………………………..22
3.1 Research question……………………………………………………….22
3.2 Research method………………………………………………………...22
3.2.1 Case study……………………………………………………………...23
3.2.2 Questionnaire…………………………………………………………..23
Chapter 4 Data analysis & main findings………………………….…………..25
4.1 Logistics management in many countries………………………….………25
4.1.1 Logistics management in the US………………………………………...25
4.1.2 Logistics management in Japan………………………………….……….25
4.1.3 Logistics management in Europe…………………………………….…..26
4.2 Main risk and uncertainty …………………………………………………..27
4.2.1 Strikes revealed the vulnerability of the global logistics management…...27
4.2.2 War reduced controllability the global logistics management…………….28
4.2.3 The existence of the terrorism increased the global logistics procedures...29
4.2 Case analysis of the successful GLM firms ……………………………….29
4.2.1 FedEX ……………………………………………………………………30
4.2.2 Deutsche Post …………………………………………………………….30
4.2.3 Nippon Express……………………………………………………………31
4.2.4 Ryder ………………………………………………………………………32
4.3 Experience borrowed from the four performers…………………………......32
4.3.1 Envision the future and act on the foundation …………………………….33
4.3.2 Establish flexibility………………………………………………………..33
4.3.3 Partner for success…………………………………………………………34
4.3.4 Automate with Internet……………………………………………………..34#p#分页标题#e#
4.3.5 Increase visibility and control………………………………………………35
4.3.6 Use inventory to increase efficiency………………………………………...35
4.3.6 Implement transportation spends…………………………………………….36
4.3.7 Streamline customs processes ……………………………………………….36
4.3.8 Develop the supply chain manager for the future……………………………36
4.3.9 Establishment of a complete global logistic management system……………37
4.4 Risk prevention of the global logistic multinational corporations………………38
Chapter 5 Conclusions………………………………………………………………41
5.1 Summary…………………………………………………………………………41
5.2 Limitations……………………………………………………………………….47
Bibliography…………………………………………………………………………48
Appendix…………………………………………………………………………….52
Introduction
1.1 Research background
A combination of powerful forces have been exerting a great influence upon the worldwide economy, ( globalization, terrorism, stress from the stock market) These forces create an atmosphere of high uncertainty, change and risk; however the it is also true that these and other structural and technology changes create opportunities for organizations to exploit. The fields of logistics and supply chain management have been at the center of all these developments and have developed an increasingly strategic role in creating value. For example global logistics trade security protocol, declining cross-border trade barriers, information and communication technology cost, transportation cost, and pressure from the global competition, has transformed the way the multinational companies organize and coordinate their production into global logistics system.
A key trend with these developments has been that multinational corporations have outsourced non-competencies to third-party logistics providers, partnering and cooperating with other organizations which ultimately results in locating elements of their supply chain in international contexts.
A global logistics system is a worldwide network that involves many firms and relationships where the activity of adding value to products by means of the transformation of the raw material to product and service in an effort to fulfill and exceed the ultimate end-users’ value expectation (Amburgey & Rao, 1996). The counterpart of the global logistics system is global logistics management, it entails a volume of methods that could be used to integrate the manufacturer, supplier, retailer and distributor efficiently so as to realize the producing and distribution of the merchandise in the proper quantity, to the right location and at the right time in efforts to minimize the system cost while fulfill the service level requirement (Scherpereel, C. M. (2008). Global logistics management should be consumer-oriented and flexible to adjust the operations of the business flow for the sake of the allocation of the global resources of the enterprises (Lee, 2004). Global competition has been increasing since the 1980s, and during this period the life cycles of products have been becoming shorter. Meanwhile, the key business activity of the global competition has changed and as well. Rudberg and Olhager (2003) have investigated two research areas that are based upon two structural decision categories in an operations strategy, i.e., the facility and vertical integration, which could be seen in the literature review section.. Ho (2002) has highlighted main weaknesses of the extant literature regarding the conceptualization, operation, and modeling of SCM http://www.ukassignment.org/lxslw/ models and a SCM models that is based upon a context-practices-performance framework has been developed thereafter, Ho (2002). In fact, there exist many problems of global logistics management or global supply chain management, for instance, the problems exist in the supply and demand in the market, the criteria to determine the size of the raw materials, the way of products designing and so on. According to the development of the industry and the previous academic research field, in efforts to enhance the business competition and earn more benefits, it is of great benefit and profile to construct optimal global logistics management framework (Rossetti & Choi, 2008).
In order to respond to the re-structuring and the large-scale industry transformation, under the circumstance of globalization, the international economy has been experiencing an unprecedented change, and the investment force and the corporation strategy have been changing as well (Vidal and Goetschalckx, 2000). In reality, there are a large number of multinational corporations that have been participating into the re-structuring of their industry chain; meanwhile, a new global development strategy that various corporations have planned out has been exerting great influence upon the global logistics and supply chain management. As a result, this thesis tries to investigate the risks and uncertainty that lie in the global logistics management, proposes some useful suggestions and recommendations for management of global logistics development.
1.2 Research objectives
Global logistics management is usually acknowledged as an extended theory of the traditional logistics management and development (Davis, 2008). However, global logistics management is one of the most critical trends within logistics, and few aspirational organizations or countries can afford to ignore this phenomenon. As a result, the thesis aims to point out what are the risks and uncertainties of global logistics by means of analyzing the problems that at the presence of the logistics management and exploring that successful global logistics management of some giant logistics companies. It is expected that the thesis would propose recommendations for the global logistics development and operation of other companies under the circumstance of an increasingly fierce international competition.In addition, the research aim of the thesis is how to get out of the risks and uncertainties of the global logistics management. The author would try to realize that aim via answering the questions in the following:
1) What is the logistics management within the global?
2) What are the risks and uncertainties of global logistics management?
3) What experiences that could be learned from the successful logistics management enterprises?
4) What are the proposals that could be put forward so as to reduce that risks and uncertainties?
1.3 Rationales for the work
Under the circumstance of the economic globalization, and with the constant change of the global economy, the investment motivation and corporation strategy have been experiencing unprecedented change within the multinational companies. Nonetheless, due to the advancement of the technology, the trade barriers have been eliminated between various countries. Meanwhile, there is an increasingly strong aspiration for the recovery of the global economy, within the world there comes a new run of the restructuring and http://www.ukassignment.org/lxslw/ transferring of the corporation framework, and the multinational firms have considered reorganizing their value chain as well as making new plan for their development worldwide. Global logistics management has been right influenced by such trend, and it has been experiencing profound change and newly-born development trend. Simultaneously, there are many uncertainty and risking factors at the presence of the international corporation, as a result, undertaking the investigation into the modern global logistics from the perspective of the global is of extremely significance.
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