Based in Shanghai, Tiger also maintains administrative offices in Hong Kong, where most trading takes place. During the recent economic downturn, many companies stripped layers of cost from their supply chain operations. Marketing logistics can help to ensure that all of these entities work together and produce the marketing materials needed to sell the product.
Marketing is essentially the window to customers. Finance is responsible for managing cash flow, current assets, and capital investments. And 20 to 30 percent of every company provides all the reported profit and subsidizes the losses.
Although both categories have an OM function, these differences pose unique challenges for the operations function as the nature of what is being produced is different.
Regardless of these differences, the customers expects percent conformance and assured reliability at all times with every transaction. The Asia-based supply chain serving a U. They are most like manufacturing organizations yet they provide a service. Some questions to ask are: The goal is to manage the overall performance of that portfolio of products.
For example, locating a factory in Mexico might reduce the labor costs associated with a product. Most team members will have been born and raised in the same area where they have spent their entire career. High contact segments are those parts of the operation where the customer is present, such as the service area of the post office or the dining area of a restaurant.
This is one way to take some control over a risk and avoid a sudden increase in supplier costs if raw materials prices rise. Marketing logistics must recognize price drivers. Among the qualifying factors, Byrnes cites the operating fit.
While cost controls, optimization, efficiencies, and operational excellence are important to a successful supply chain, relationships and risk management will differentiate the big winners. Service organizations, on the other hand, produce intangible products that cannot be produced ahead of time.
Figure Organizational chart Operations management OM is the business function responsible for managing the process of creation of goods and services. That change positions supply chain professionals as the driving force behind opportunities that can result in better financial performance for their companies.
Usually there is much overlap between them, and their distinctions are increasingly becoming murky. Marketing is responsible for sales, generating customer demand, and understanding customer wants and needs. Customers here usually come in contact with some aspect of the operation.
Many of these decisions can be costly. The profile of the customer, the product and the type of order are factors that drive the price.
This is true regardless of the size of the company, the industry it is in, whether it is manufacturing or service, or is for-profit or not-for-profit. As an industry, the medical surgical supply segment has increased the volume of product it sources from Asia to nearly 10 percent, says Holt.
Shifting Roles The traditional supply chain had senior management, product design, engineering, manufacturing, sourcing, marketing, sales, and logistics all located in the domestic market see chart, below. Companies are realizing the financial benefits of integrating more with customers and suppliers.
The organization must execute logistics in such a way that the customer is not aware of the complexities involved in the logistics process. However, in service organizations the customers are typically present during the creation of the service.
Figure illustrates this by showing that the vice president of each of these functions reports directly to the president or CEO of the company.
Supply Chain ManagementFinance Innovative supply chain management delivers financial benefits to your bottom line. These differences are shown in Table This is shown in Figure First, manufacturing organizations produce a physical or tangible product that can be stored in inventory before it is needed by the customer.
The Transformation Role of Operations Management We say that operations management performs a transformation role in the process of converting inputs such as raw materials into finished goods and services. Further, the size of the manufacturing run, labor costs and the types, quantities and quality of the materials used in the manufacturing process can affect price.Purchasing / Manufacturing.
If an organization is involved in the manufacturing of products of any kind, logistics and transportation are absolutely critical.
The lifeblood of the organization is the raw materials and components that are planned, purchased, scheduled, and delivered to. Discuss how logistics interfaces with finance.
This scenario often involves high storage costs and high obsolescence costs. That is. manufacturing is optimized by producing product even though demand organizations rationalized long productions runs to lower unit costs without really evaluating the resulting inventory carrying costs 5/5(1).
Operations management (OM) is the business function responsible for managing the process of creation of goods and services. It involves planning, organizing, coordinating, and controlling all the resources needed to produce a company’s goods and services.
Question: Discuss how logistics interfaces with finance, marketing and manufacturing from an inventory stan Discuss how logistics interfaces with finance, marketing and.
Discuss how logistics interfaces with finance, marketing and manufacturing from an inventory standpoint.
ANSWER: Marketing The primary mission of marketing is to identify, create, and help satisfy demand for an organization’s products or services. Jun 30, · Marketing logistics involve coordinating the development and delivery of marketing materials with products to meet the market demands.Download