Lead Time And The Success Of Logistics Networks

656 words - 3 pages

The business environment has become more fast paced. Automation in factories , development and use of JIT practices ,the use of ERPs in every day work have changed the speed of work. Frequent new innovations resulting to even shorter life cycles have made customers to be more interested in speed and convenience of delivery so much that price is no longer the determining factor of purchase. Christopher (2011) explains that the lead time are both customer and supplier based concepts and that for the supplier, the lead time is the time it takes to be paid while the customer lead time is the time it takes from placing the order to the delivery. Both concepts are extremely important to logistics management in that speed of delivery to customers and of payment to suppliers is an element that can place an organization in a competitive stance as order winners. Jones and Towill (1998) stress that organizations today share similar technology and similar work practices ...view middle of the document...

Kazaz et al (2012). The different stages that begin with the request of material and lead to the final order receipt is the order cycle. As stated by Christopher (2011) Bottlenecks , inefficient processes and fluctuations in order volume often lead to variations in the time used to complete orders.
In typical construction order cycles, the lead time consists of the time spent on all the processes till materials are received. It is how long it takes to get the correct request with all data needed, the time spent on the stage of bidding (Inviting at least three suppliers) ,evaluation of offers received and negotiation, purchase order placement and approval, purchase order acknowledgment and then delivery by supplier .Ideally this should follow a synchronous flow so that lead time is reduced but the process often can be affected by several factors that tend to extend one stage or the other thereby also extending the lead time. Such factors include Supervisor or team head input, miscommunication or the lack of it, supplier delays, and transportation schedules.
According to Kazaz et al (2012), balancing the time frame to complete processes in the chain can help compress the lead time. In saipem, as stated by Towill (1997), Developing a seamless supply chain is important. There should be elimination of unnecessary procedures that only further delay delivery. A more streamlined procedure that does not involve approval of a section head at every stage is a step, Adopting business practices as JIT, benchmarking approaches so as to compare and improve on which stage in the chain has the longest time, and strengthening information networks will help further compress time.
Christopher, M. (2011) Logistics and Supply Chain Management. 4th ed. Harlow: FT Prentice-Hall.
Mason-Jones, R. and Towill, D.R(1998) Time compression in the supply chain: information management is the vital ingredient .Logistics Information Management
11/ 2 pp. 93-104.
Rushton , A., Croucher, P. Baker, P. (2010) The Handbook of Logistics and Distribution Management . 4th ed. London - Kogan Page
Wu, Z, Kazaz, B, Webster, S, & Yang, K (2012) 'Ordering, Pricing, and Lead-Time Quotation Under Lead-Time and Demand Uncertainty', Production & Operations Management, 21, 3, pp. 576-589,

Other Essays Like Lead Time and the Success of Logistics Networks

The Success of Science Essay

643 words - 3 pages Scıence has gradually been improving so rapidly for eras.More than one hundred experiments are conducted by groups of scıentısts every year and the overwhelmıng majorıty of them attains successful consequences.However some of scıentıfıc tests are sometımes exposed to heavy crıtıcısım because of some culturel,social and relıgious values or ıdeologıcal approaches.The study of clonıng ıs one of the scıentıfıc tests whıch are harshly crıtıcızed by

The Importance of Professional Values and Ethics in Success

1180 words - 5 pages the professional side of that individual’s life. In business, a balance between personal and professional values can lead to success not only for the employees but also for the company. Individuals spend eight hours or more each day in the workplace. Each day they are applying their personal ethics and values to their workplace and habits. “Values are enduring beliefs, both hard-wired (i.e., acquired genetically) and shaped by cultural context

Evaluate the Impact That Entrepreneurial Networks Will Have on the Novice Nascent Entrepreneur Setting Up Business for the First Time

2464 words - 10 pages Evaluate the impact that Entrepreneurial Networks will have on the Novice Nascent Entrepreneur setting up Business for the first time Introduction The extent to which entrepreneurial networking has an impact on the nascent entrepreneur is an interesting hypothesis. There is evidence to suggest that the nascent entrepreneur is reliant on the use of networking, yet other evidence states that the success of this type of entrepreneur stems

Evolution of Augmented Reality, Wearable Wireless, and Body Area Networks

611 words - 3 pages Evolution of Augmented Reality, Wearable Wireless, and Body Area Networks New technologies continuously emerge that change the nature of work and human lifestyles in dramatic ways. We see Augmented Reality (AR), Wearable Technology, and more specifically Body Area Networks (BAN) as particularly life-changing solutions to many human problems. As with many new innovations, some of these are problems we do not even realize we have at present

Control of the Supply Chain Networks by Supermarket Chains

3178 words - 13 pages done as a whole rather in discrete parts” (Brassington and Pettit 2006, p.556.). The key objective of total logistics is to achieve efficiency and cost reduction in the process of warehousing, transportation and distribution of goods for the mutual benefit of all partners in the value chain. In reality, as competition increases at the till, supermarkets seek to increasingly exploit the supply chain networks to deliver value to the customers at

Transnational Networks of Support for the Zapatista Rebellion

5256 words - 22 pages Transnational Networks of Support for the Zapatista Rebellion Globalization, the term used to describe the dominant framework of international relations following the cold war, is affecting many aspects of politics and social experience. This is seen in the Zapatista rebellion and movement in Chiapas, Mexico that has benefited from globalization and transnational support. This paper examines the relationship of transnationalism


2963 words - 12 pages want to accomplish. Sometimes even the best producers get into a slump. When a person gets into a slump, it simply means that they have reached a point at which, for the time being, the things they don't like to do have become more important than their reasons for doing them. Many people with whom I have discussed this common denominator of success have said at this point, “But, I have a family to support and I have to have a living for my

The Time of William Shakespeare’s’ Romeo and Juliet

2077 words - 9 pages GSCE ENGLISH: ROMEO AND JULIET. - TO WHAT EXTENT CAN LORD AND LADY CAPULET BE SEEN AS GOOD PARENTS TO JULIET? In the time of William Shakespeare’s’ Romeo and Juliet, society was dominated by men and only they were considered for positions of power and a speaking voice. This is shown in the Capulet household as they were considered very patriarchal, as it would have been expected in those times. They were also extremely wealthy so their

Time and Meaning of Life

517 words - 3 pages if you have been given a task and God wants to see how well u do it Do you do it to the best of you’re ability, do you turn away and say SCREW IT or the worst, you say you want to do it but it can wait till tomorrow. What you don’t understand is that there is very little time. So u must utilize every second of the life you have because one day you’ll lose it and then it will be too late. Everyone is destined to do great things in their

An Analysis of Gatsby’s Success and Failure

930 words - 4 pages his inheritance. Gatsby then dedicated himself to becoming a wealthy and successful man. At the same time ,he had gained the skills of making money which was vital to his success, However, his poor background and exorbitant desire for wealth and success were obstacles to him. After World War I ,the generation of young Americans who had fought the war became intensely disillusioned, as the brutal carnage that had just faced made the Victorian

Ignorance: the Downfall and Success from Hamlet

1257 words - 6 pages “Ignorance: The downfall and success from Hamlet “ Asma Baig Thursday, December 18, 2009 ENG -4U0 Per.3 Mr. Ornstein Revenge is an action often to seek self satisfaction through the impulsive decisions one may make when they are angry. Many believe that revenge is a form of justice for those who commit crimes or sin. In William Shakespeare’s Hamlet, the characters, Young Hamlet, Laertes and Fortinbras all seek vengeance for the

Related Papers

The Marketing And Logistics Essay

2582 words - 11 pages key success factor for a company 9.Summary and Conclusions Introduction The purpose of this assignment is to provide a framework of how to compete in the unknown future by developing a strategy based on the integration of marketing and logistics. This strategy is particularly relevant for competitive industries where differentiation from competitors is gained only by providing superior service. The ways to achieve this superior service

The Age Of Lead Essay

2352 words - 10 pages . * At the time Crete was a very powerful nation with a huge navy and it dominated the area. * Every year king Minos of Crete would sacrifice his best bull as an offering to the sea god Poseidon. * His herd of cattle produced a calf bull that was perfect and he did not want to sacrifice it so he sacrificed one of lesser beauty. This angered Poseidon. * Poseidon punished King Minos by making his wife lust for the bull

The Secret Of Success Essay

502 words - 3 pages The Secret of SuccessWe are born to work. We must achieve something great in a limited time. This is our duty - a duty that every man or woman should bear. But what should we do in order to achieve success. If you want to be successful in your work, you must take this rule: one thing at a time. Indeed, this is a rule for anybody to follow. Some people are too ambitious. They want to do this and they want to do that. They want to do many things

The Way Of The Seal Think Like An Elite Warrior To Lead And Succeed

2283 words - 10 pages MGT320 Leadership Book Paper Book Review of The Way of the SEAL Think like an Elite Warrior to Lead and Succeed By Mark Divine With Allyson Edelhertz Machate In this book, Retired Navy Commander, Mark Divine, presents leadership from a military standpoint. He breaks down his training from the Navy Seal training school into 8 basic principles. Each principle is supported with exercises, meditations, and focusing