Logistics refer to the structural organization or flow of things when implementing operations. In the business sense, logistics indicate the strategic management of operations from the point of product creation to the point of consumption by the users ( Jacobs, Chase & Lummus 2014 ). Particularly, logistics is influential in establishing efficient system design as well as sustaining projects through the developmental phase. However, the logistics employed in various businesses vary. The market is competitive, especially in the contemporary world where keen logistical approaches on system design and development are integral in ensuring the organization realizes a positive economic valuation. Therefore, it is important to understand the different aspects of logistics in system design and development to establish precise and viable system development procedures. In this regard, this paper explores the concepts to consider when implementing a logistics system, and the market conceptualizations of logistics in system design and development within the scopes of effectiveness, combining functionality and the economy.
To implement a stable logistics system, information about customer service types is essential in establishing credible logistical flows of the business operations. Efforts of understanding customer service types enable a logistics system developer to blend the processes with the anticipated customer experience on product or service outcomes. For instance, a logistics system for retail customers differs from a logistics design intended to serve e-commerce customers. Similarly, mixing the intentions of a logistics system greatly alters the efficiency of the system. Organizations have developed logistics management systems which oversee effective supply chain management and resultantly improves the entity’s customer satisfaction levels ( Judd, Sarin, & Cundiff, 2012 ). This information ensures that customer demands are met through the planning, control and implementation stages. Ultimately, this translates to favorable movement and storage of goods and services from their origin to a stated destination. Moreover, understanding an organization customer segment translates to the adoption of precise logistics systems that will influence the better reception of the systems adopted especially on the distribution of products and services.
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Also, the cost estimates associated with a system prior to development are essential in designing a great logistics system. Costs in this regard refer to expenses anticipated before a system is designed and the cost attributable to the entire life cycle of the facility. A systems lifecycle cost analysis (LCCA) is important to track down the anticipated expenditures that a system will incur from the designing phase through the development, operation and disposal of the facility ( Wasson, 2015) . Therefore, when developing logistics in system design and development, the efficiency of the venture is subject to the cost deliberations made to weigh the ability of the organization to sustain the project throughout its developmental cycle. Additionally, through a cost-benefit analysis, an organization is able to make pertinent decisions when considering the most achievable systems among several alternatives. This is realized through scrutinizing different input and output variables that are required to develop appropriate logistics system designs. A cost-sensitive logistics system is a great tool in planning and organizing funds allocation in system design and development. Research indicates that there is a chance to reduce system costs by 10% to 40% when appropriate measures are established through the logistics operations (Wasson, 2015). This concept dictates optimization of the logistics system through the adoption of a cost-effective analysis.
Additionally, when designing logistic processes, it is important to accustom the Deming wheel. Deming cycle is another word for a Plan-do-check-act (PCDA) iterative management method, which aims at realizing system control, continued assessment and improvement of processes and services ( Cowley & Domb, 2012) . When establishing a system design, the planning process is vital in ensuring the system responds to the observable faults. In fact, the anticipated outputs are better achieved if a sound planning process was initiated. Similarly, a logistics system needs great planning procedures before the system is ready to handle system designing and developmental processes. This is in respect to the ability of a system developer to track and monitor the system as the outputs are accurately predictable if the initial planning of the logistics system was adequately implemented.
Continually, the do phase in the Deming cycle avails an opportunity to enact the planned logistic system by evaluating the impacts inflicted on the system as a result of the changes. This data is gathered and used to check on the efficiency of the logistics system by comparing the data collected from outputs projections and consequently revealing their similarities and differences. This phase also avails a platform to establish gaps on the aspects of the system that need adjustments in the planning process. In addition, logistic appraisals are checked in this stage to determine the future of the system. In the act phase, a PDCA cycle will respond to the indicators of the logistics plan phase, do phase, and check phase. If the check phase projected better logistic system standards, then those suggested in the plan phase are negated and action is taken to implement the newly proposed suggestion. Notably, the organization may treat the PCDA’s act phase as the adjustment stage because the suggestion implied from the prior logistics phases do not necessarily mean the whole logistic system is faulty. To this end, a few adjustments can be made on the system to realize better outputs in the actual allocation.
The process of designing a logistics system is effective when the developers major in establishing logical and structured procedures rather than spending a fortune trying to adjust or improve on the existing faulty logistics system. Therefore, a credible logistics system will follow a sequence through initiation and development process. First, in the initiation stage, logistics system developers are obliged to set the projects scope, objectives and the time plan ( Khayrullina, Kislitsyna & Chuvaev, 2015 ). In this stage, an organization should create the project development team or a task force mandated with the logistics system design and development. Secondly, the team collects data to determine the supply and consumption of the organization. This data provides information on the market competition and the available resources within the organization and is enabled through conducting a supply chain audit which creates a solid establishment of projecting the future logistics requirement of the system.
Thirdly, the logistics data captured is subjected to expert analysis to derive amicable logistical reports and inferences. Also, the analysis conducted in this logistical phase is instrumental in identifying the key logistics processes for the business, hence, availing a precise method of determining where to strengthen the processes or dictating strength and focal points relatable to the organization’s logistics structure. Fourthly, after conducting an analysis, the organization implements logistics planning and designing. In this stage, aligning the organization processes and operation with the critical logistical process will influence the applicability of the logistic design. Additionally, the logistics system at this juncture aims at establishing detailed organization structure designs, operational procedures design and business plans development. Lastly, the final stage of implementing the logistics system of a project follows. Here, the systems aim at developing implementation plans, change, performance improvement and continuous assessment of the logistic system.
Additionally, a feasibility study and justification process of a logistics system explores the precision with which the procedures adopted in the logistics designing correspond to market issues, organizational or technical issues, and financial issues. The logistics design formulated in the above paragraph adheres to the three facets of determining projects feasibility and justification. The market comprises of varying distributional structures and procedures which are integral for projects profit and wealth maximization. This translates to positive economic valuation. A logistics feasibility study ensures barriers anticipated from the market dynamics are absorbed in the design to maximize the viability of the organizations business in the market ( Jacobs, Chase & Lummus 2014 ). This aspect infers that market demand and supply forces are fundamental when designing a logistics system because disregard for customer behavior in the planning process leads to developing logistics systems which do not justify the procurement process. Organization issues enable the system developers to create logistics systems that integrate past technical experiences encountered by the business. In this way, a logistics system reflects not only the outward trends and projections of the market but also the inner contemplations within an organization. Moreover, the feasibility study of a logistics project ensures that the developers allocate the logistical procedures the most optimal financial models. Financial modeling is integral in logistics because a project can only materialize when the allocated budget is enough to enable adequate input of resources required in every logistical design procedure. Also, it is essential to note that a financial feasibility study and justification does not necessarily require long-term financial projection, but rather requires extrapolation of the financial break-even point.
In the process of justifying a logistics project, there are various economic and mathematical methods applied through the formulation of the project. Moreover, a logistics system integrates technical, fundamental, and economic analytical processes to develop convenient logistics systems. Apart from the aforementioned life cycle costing and cost-benefit analysis, mathematical economic dictates that logistics is subject to calculated processes entailed in integral calculus, integration and differentiation equations. Also, matrix algebra, mathematical programming and applicable computation methods are essential in designing a logistics system ( Khayrullina, Kislitsyna & Chuvaev, 2015 ). The relationships developed from the above calculations are typically aimed towards optimization of the available resources and the attainment of logistics goal equilibrium. Also, these models offer a comparative platform to evaluate all project alternatives and establish preferences in respect to the achievability of the task and the factors which affect the preference of one logistics procedure to another.
Conclusively, logistics in system design and development influences how efficient businesses tackle operations from their initial to final stages. There are a number of considerations employed when developing a logistics system. Customer information is essential for the logistics system as developers are able to accustom with the prevailing customer experience, which is vital in determining the logistics goals. Also, costs associated with logistics development affect the productivity of the logistics system. Also, determining costs in logistics varies from one project to another. Estimating the cost anticipated through the system development process enables the developers to allocate sustainable resources on the system as well as utilize the opportunity costs that may arise from the venture. Also, the logistics design and development blends well with the Deming cycle which dictates a plan-do-check-act procedure. Nevertheless, depending on the action taken after the check phase, some organizations apply the Deming cycle in a plan-do-check-adjust process. The study adopted a logistics design which follows an order of project initiation, data collection, analysis, planning and design and implementation. Various factors influenced the feasibility and justification of the logistic systems, especially basing on market and organization issues and financial modeling. Logistics system designing is also subject to varying mathematical and economic simulations, which are integral in the computations entailed in a logistics project.
References
Cowley, M., & Domb, E. (2012). Beyond strategic vision . Routledge.
Jacobs, F. R., Chase, R. B., & Lummus, R. R. (2014). Operations and supply chain management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Judd, J. D., Sarin, S. C., & Cundiff, J. S. (2012). Design, modeling, and analysis of a feedstock logistics system. Bioresource technology , 103 (1), 209-218.
Khayrullina, M. V., Kislitsyna, O. A., & Chuvaev, A. V. (2015). Production systems continuous improvement modeling. Quality Innovation Prosperity , 19 (2), 73-86.
Wasson, C. S. (2015). System engineering analysis, design, and development: Concepts, principles, and practices . John Wiley & Sons.
