Lord Emmanuel Yamoah
Department of Purchasing & Supply, Takoradi Technical University
Abstract
The success of logistic operations consists in ensuring the synchronization of material flows thanks to the coordination of processes and the use of resources in the company and the supply chain, and as a consequence ensuring the availability of goods in the place and time expected by the customer. An extremely important dimension of logistics management success is also the cost level, both logistic and manufacturing costs as well as transaction costs (Witkowski, 2010; Pfohl 1998). The impact of material flow organization on transaction and production costs is a consequence of the nature of logistics processes , which is to support both production processes, transactions, and customer service. Logistics and supply chain should not be confused. Logistics is a rather narrowly focused concept (narrower than the SCM), which means globalization of resource management from every local unit to the entire network of production points.In turn, supply chain management is a more complex category. Supply chain management involves logistics and thus performs end-to-end optimization – that is, within the enterprise and when working with counterparties.
Efficient logistics management aims to achieve maximum competitiveness and profitability of the company and the entire network structure of supply chains, including the end-user. In reality this is not always the case as logistics in its role to coordinate the various functions of the supply chain tend to face various challenges. These include transportation issues, technological and skills deterrent, issues with customer service. Customers want full clarity into where their delivery is at on time and so keeping customers waiting is a major cause for concern. This is a major problem because meeting customer demand and delivery on time helps to complete a successful supply. After conducting the research study above, the researcher came up with the following conclusions; The researcher concluded that the following are the modes of transport used at GHACEM; inland water transport (shipping), rail transport for longer journeys, road transport for short hauls and air transport. Again, the researcher concluded that the main factor influencing the selection of transport modes at GHACEM is legal procedures. The size of the load to be shipped out either in large or small volumes, distance coverage, speed and transit time and rate of risk are the other factors influencing the selection of transport modes at GHACEM.
Moreover, the researcher concluded that improve Just in Time is the main impact of transport management on operational efficiency. Improvement of delivery, increase responsiveness, quality and safety in distribution assurance are the other impact of transport management on operational efficiency. Lastly, the researcher concluded that the following are the challenges of transport operations at GHACEM; transport operation management is a capital intensive venture in operations of the organization, fixed or standing cost are incurred when transport vehicles and concrete mixers are standing still and not working, insurance cost associated to the vehicle or equipment as well as the physical goods in transit may be expensive, variable or running costs are incurred whilst the vehicles or transport equipment are in operations and bad roads and poor infrastructure
Keywords: Competitive Tendering’s | Procurement Planning | Value for Money | Procurement System, Cost-Reduction
