Explain how inbound logistics, conversion operations and outbound Essay

Explain how inbound logistics, conversion operations and outbound logistics converge to provide intergrated logistics - Essay Example rations involves several essential elements of a business such as production management, information flows, transportation of goods, warehousing, inventory control etc. Handling such activities with precision has become inevitable for the companies to gain competitive advantage over their competitors and strengthen its market positioning. It covers several operational aspects of a business, such as order processing, distribution of goods, as well as packaging which are essential for the timely receipt of raw materials as well as delivery of the finished products to the end users. Logistics can be defined as â€Å"The process of planning, implementing, and controlling procedures for the efficient and effective storage of goods, services, and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements. This definition includes inbound, outbound, internal, and external movements1.† While the business dictionary defines logistics as â€Å"planning, execution, and control of the procurement, movement, and stationing of personnel, material, and other resources to achieve the objectives of a campaign, plan, project, or strategy. It may also be defined as the management of inventory in motion and at rest.2† Michael Porter’s Value Chain Model3, is an essential tool that helps in analyzing the various activities through which, the firms across the industry, seek to create competitive advantage. This model involves a series of support activities which are shown in the following diagram: The basic idea behind this model is to depict the various activities that create value to the organization which should be far greater than the cost involved in providing the product or service, hence creating a substantial profit margin in the process. These activities are explained through the case study of the â€Å"Bombay Dabbawalas† (Lunch box carriers from a city in India), a six sigma operation, recognized as a

Budget Monitoring and Format ( Individual Project ) Research Paper

Budget Monitoring and Format ( Individual Project ) - Research Paper Example The over-expense incurred by the investment specialists would tighten the amount of idle funds left for the company to meet the short term liabilities (Handlechner, 2008). Operational Risk The Money Cares Investment Corporation would face operational risks as the funds required for its daily operations would be curtailed due to the wastage of finances by means of credit cards for obtaining marketing supplies, transportation, and hospitalities. Financial Risk The budget planned for Money Cares Investment Corporation includes the estimated expenditures and the anticipated sources of the revenue in order to generate the future cash flow and meet the future liabilities. As a result of the over-expenses incurred by the investment specialists by the use of credit cards, it would lead to the deficit in the cash flows of future, thereby, posing financial risks in terms of the shortage of liquidity. Actions for the Company to Succeed In order to create a situation for the company to succeed, there should be a sufficient control established along with the continuous monitoring for the budgetary expenses planned for the company. The budgetary allocations are series of actions involving planning, implementation, and monitoring. In order to succeed, the company should construct a system of approval for the use of credit cards by the investment specialist. The CEO and Finance department should ask the clericals of the company to undertake the official work of recording the expenses on a daily basis. The expenses to be incurred by the usage of credit cards need to have a prior approval form a responsible authority. The investment specialists are also to be held accountable for the income generated and the expenses proposed by them. Thus, a proper budgetary control and monitoring system would help the company to succeed (Husson, 2002). A tally of the records will help the company to understand what amount of limit is left to be against the budget plan. This implementation of t he budgetary control will help to prevent over-expenses of the company. Company’s Most Vulnerable Areas The most vulnerable areas of the company are the financial procedures and instruments used for the funding of the daily operations. This involves the role of the manager and the three investment specialists. The company has chosen to use credit cards in order to access funds required for transportation and hospitality of customers while having expenditures for food and drinks and marketing supplies of its solutions. The absence of a cost control mechanism supported by a lack of monitoring by the company has given a free hand to the investment specialists. The ownership of the investments by the specialists under such a process is under question. Thus, the control mechanism for monitoring the expenses of the company is the most vulnerable area of the business of Money Cares Investment Corporation. The Company’s Assets The company’s assets are the short term cas h positions held by the company which help them to service the short term liabilities. The liquidity level of the company helps them to service the expenses on credit cards and other short-term credits acquired by the company. The net current assets of the company help them to meet the cost of daily operations that include transportation costs, marketing of its solutions