College of Administrative and Financial Sciences Assignment 2 Deadline: 28/03/2020 @ 23:59 Course Name: Logistics Management Student’s Name: Course Code:MGT322 Student’s ID Number: Semester: II CRN: Academic Year: 1440/1441 H For Instructor’s Use only Instructor’s Name: Students’ Grade: Level of Marks: Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. Assignment: 2 Submission Date by students: Before the end of Week- 10th Place of Submission: Students Grade Centre Weight: 10 Marks Learning Outcome: 1. Demonstrate an understanding of how global competitive environments are changing supply chain management and logistics practice. 2. Apply essential elements of core logistic and supply chain management principles. 3. Analyze and identify challenges and issues pertaining to logistical processes. Assignment Workload: This assignment is an individual assignment. Critical Thinking In today’s highly competitive, extremely variable and really dynamic environment, many firms are seeking solutions. Supply chain management becomes more sophisticated and the difference between what firms want to achieve and what they can do in-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything. Accordingly, they are becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases firms decide to outsource this function in whole or in part to agents or third party logistics firms. Using this concept of offshoring and outsourcing answer the following questions by taking any Saudi Local company or any Multinational company. Question: 1. What are Third party logistics firms? 2. Explain the motivational factors for going internationally? 3. On what ground companies choose developing countries location for offshoring? Use examples. (Mention the country and decisive factors) 4. Assess the reasons for using third party logistics service in Saudi Arabia? Using examples, Explain The Answer should be 3- 4 pages in length including the cover page and reference. The Answer must follow the Key word/ outline points below: • Outsourcing ,offshoring ,Third Party logistics • Their Main functions • Motivational Factors /Drivers • Any local example • Reasons with suitable Examples • Reference Note: You can support your answer by reading chapter 4 of your book. You can use secondary source available on internet. Please use APA-style referencing. Answer 1. Answer 2. Answer 3. Answer 4. References. Slide 4.1 Chapter 4: Managing logistics internationally Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.2 Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.3 7 Rights of Logistic @ seven rights are, • to deliver the right product, • in the right quantity • the right condition, • to the right place • at the right time • for the right customer • at the right price. Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.4 International logistics • International logistics is the process of planning and managing the flow of goods and products in your company's supply chain , where part of the process involves crossing at least one international border. Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.5 International Logistics Management • Logistics management skills are one of the most needed competencies in global economies. • The International Society of Logistics defines logistics as a professional discipline that ensures the successful support of the product throughout its life. From design engineering to manufacturing and materials, packaging and marketing, and distribution and disposition, • logistics involves every possible phase of the product support process. The main goal of a logistician is to minimize both public and private operating costs and maximize productivity. Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.6 Risks in International Logistics Risks in international logistics External risks ⚫Language and culture uncertainty ⚫Political risks ⚫Macroeconomi c risks Internal risks ⚫Supply options ⚫Inventory policy ⚫Transportation and distribution arrangements Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.7 Figure 4.1 Decision framework for international logistics Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.8 Internationalization The designing of a product in such a way that it will meet the needs of users in many countries or can be easily adapted to do so. Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.9 Drivers and logistics implications of internationalization Motivations for International Expansion • Increase Market Share – domestic market may lack the size to support efficient scale manufacturing facilities • Return on Investment • large investment projects may require global markets to justify the capital outlays • weak patent protection in some countries implies that firms should expand overseas rapidly in order to prevent imitators Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.10 Drivers and logistics implications of internationalization Motivations for International Expansion • Economies of Scale or Learning – expanding size or scope of markets helps to achieve economies of scale in manufacturing as well as marketing, R & D or distribution – can spread costs over a larger sales’ base – increase profit per unit • Location Advantages – low cost markets may aid in developing competitive advantage – may achieve better access to: • Raw materials • Key customers • Lower cost labor • Energy Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.11 Drivers and logistics implications of internationalization • Strategy and operating decisions are Multidomestic decentralized to strategic business units (SBU) in each country strategy • Products and services are tailored to local markets • Business units in one country are independent of each other • Assumes markets differ by country or regions • Focus on competition in each market • Prominent strategy among European firms due to broad variety of cultures and markets in Europe Logistical network: Mainly national; Sourcing, storage and shipping on a national level and duplicated by country Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.12 Drivers and logistics implications of internationalization Global strategy • Products are standardized across national markets • Decisions regarding business-level strategies are centralized in the home office • Strategic business units (SBU) are assumed to be interdependent • Emphasizes economies of scale • Often lacks responsiveness to local markets • Requires resource sharing and coordination across borders (which also makes it difficult to manage) Logistical network: Limited number of production locations that ship to markets around the globe through a highly internationalized network with limited localized warehouse and resources. Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.13 Figure 4.2 The international logistics pipeline Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.14 Figure 4.5 Delivery strategies in a global network Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.15 Figure 4.9 Phases in the location selection process Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.16 Figure 4.10 Changing role of distribution centres Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.17 Figure 4.14 SCM tools and trade-offs in the supply chain Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.18 Table 4.7 Comparing forward and reverse logistics (Source: Reverse Logistics Executive Council, http://www.rlec.org) Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.19 Figure 4.15 CSR practices in the supply chain Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.20 Table 4.8 NEC CSR supplier requests (Source: NEC Group CSR Guideline for Suppliers, http://www.nec.co.jp/purchase/pdf/sc_csr_guideline_e.pdf) Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011 Slide 4.21 Table 4.8 NEC CSR supplier requests (Continued) (Source: NEC Group CSR Guideline for Suppliers, http://www.nec.co.jp/purchase/pdf/sc_csr_guideline_e.pdf) Harrison and van Hoek, Logistics Management and Strategy: Competing Through the Supply Chain, 4th Edition, © Pearson Education Limited 2011
Purchase answer to see full attachment