Question

Identify major issues and the problem within the logistics and supply chain management.

Answer 1

The major issues and problems faced in the logistics and supply chain management are:

- Safety and quality of the products- The inventory is supplied and stored in bulk. Its quality and safety is a challenge that the management has to deal with. They should be of high quality and safegaurded from any damage made.

- Globalising the business- When expanding the business on global basis supply chain becomes an issue as the supply of goods and raw materials becomes complex in globalisation.

- changing demands of consumers- the change in consumers tatste and demands require a change in the products in the markets. Hence the product life cycle is small for this reason. The supply management has to deal with this changes and find a solution so that the logistics does not get effected and increase costs.

- advanced technology- The technology development is fast in every field. This demands an advancement in the production and supply management too. The ways of supply and logistics need to be upgraded on the technological grounds.

- cost control- with all the globalisation, changes and advancements in the operations it is essential to keep a control on the costs of the manufacturing and supplying of inventory for this management department.

- balance in supplier and partner relationships- maintaining healthy relations with the partners involved in the function of supply management is essential as without this the methods used for logictics management may vary and waste time and money.