International logistics

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Explanation of the statement: “Logistics and supply chain management are a Secret Weapon of the CEOs in times of Crises”

Contents

1. Introduction 2. Management of a Supply Chain 3. The strategy to adopt 4. Lean or Agile 5. Competitive advantage 6. How CEOs can be ready for the improbable 7. Conclusion Bibliography

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1. Introduction
In the actual times is provedthe condition for more reasonable and competitive methods to enlarge growth, the latest economics crisis are a prove, being reinforce by the actual global crisis that is reaching internationally creating a enormous recession and perhaps more is still to come. The rising in competition is directly related with the globalization making companies to fight for a larger market share to maintain theirmain goal, to give profits to shareholders. The different departments of a company are already over squeezed and nowadays is crucial to have good supply chain and one of the ways that the CEOs have to reach the goal of the company is to improve their supply chain and reduce the costs were still exists space of maneuver. In the recent business world a company no longer acts as an independent piece,the company needs to improve in a more efficient way so it will be possible to adapt to the rapid and constant changing markets. A CEO should have has a strategy the focus on the core competence of a company and creating and managing effectively the supply chain in order to succeed in the market. The business world is getting harder and harder as well as unpredictable, a good word to describe theactual market is instability and the companies need to increase the method and strategy to respond to this instability. The product value is a whole, since the moment he leaves the company all along the supply chain and until he reaches the final costumer. CEOs need to focus the best practices of their supply chain in order to reduce costs and create differentiation in a way that the company cantriumph in the aggressive market. A way of creating value is implementing and managing a good supply chain that is rapid corresponding to the customer demands making a competitive advantage. During the present paper will be described how is possible to have a good supply chain making that a “secret weapon” of the CEO responding the competition and crisis.

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2. Management of a Supply ChainWikipedia defines supply chain management (SCM) as “design, planning, execution,
control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally." Martin Christopher defines that the mission of the SCM as “...to co-ordinate thewider end-to-end pipeline. In-bound logistics is just as critical as the distribution of final product under this paradigm and the emphasis is now on time compression from one end of the supply chain to the other.” In our time a CEO should consider a supply chain as a complete assembly of all the different parts involved in it; the procurement, sourcing, information, finances, retailers,intermediaries, suppliers, third-party service providers, integration, information technologies, customer and supplier relationships, partnerships, customers, global and environmental issues. Each part should be taken in to account as partners to achieve the objective of a good SCM. The CEO should manage the supply chain coordinating and combining the flows so that the final result can add value to theproduct and company, harmonizing the chain as a whole. In a successful organization the value is created all the way through cooperation and collaboration with all parts involved with the purpose to improve efficiency adding value to the customer.

The important ambition of any efficient supply chain management system is to diminish inventory. One of the techniques is using sophisticated software...
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