Transportation and logistics management encompasses the administration and governance of supply chain functions. Imperatively, logistics management activities commonly consist of inbound and outbound transportation management, taskforce management, warehousing, materials supervision, and order implementation. It also takes into account logistics network strategy, inventory administration, supply and demand scheduling and supervision of third party logistics service providers (Bowersox et al., 2002). The logistics function also encompasses customer service, tracking and procurement, production preparation and arranging, packaging and assembly. Logistics management is part of all stages of planning and implementation, strategic operational and tactical (Bowersox et al., 2002). It is an assimilating function, which directs all logistics activities, in addition to incorporated logistics activities with other functions including marketing, sales, manufacturing, finance, and information technology (Bowersox et al., 2002).
The economy, in terms of different activities, does have an impact on the transportation and logistics management. In particular, it does have an impact on Defence Transportation System toward complementing best practices in supply chain management efficiently and securely. To begin with, in the Defence Transportation System, the two key goals of the USTRANSCOM consist of reengineering the DTS to offer the strategic transportation support necessitated by war-fighting CINCs, and to undertake it at the best value to the American taxpayers. This is beneficial, particularly with the transition of the DTS in the sense that there will be new operating, business and financial processes for better incorporation with the private sector. More so, economically beneficial, this intermodal system that is combined and assimilated will do away with stovepipes and uneconomical replication, arrange for a single point of contact for not only the consumers, but also the suppliers. At the same time, it will also generate a seamless transition between operations for peacetime and operations for wartime (Shuler, 1999).
This reengineered system of logistics ought to enhance organizational structure, improve the interfaces with the consumers and suppliers and also provide the department of defence with the international defence transportation system that they will need in this 21st century epoch. Some of the challenges that are bound to be faced in the future periods include: global management, mechanization as well as acumen. All services are necessitated to and have requirements for training and qualification programs or their logistics staff to generate a level of management that is focused on generating results. Taking this into account, personnel are not permitted to undertake work that they have not been trained on (Shuler, 1999).
Another instance that can be pointed out in the transition is the evolvement and shifting of the Air Force from using the just-in-case logistics to starting using the just-in-time logistics. The previous kind of logistics was made up of a burdensome system of acquisition that procured inventory just in case it ended up being needed at some point in the future. This system of logistics was quite uneconomical for the reason that it was costly. The inventory that was acquired could end up not being used at all, which implies that the funds used were wasted. More so, the acquisitions could not be returned due to becoming depreciated and also obsolete with time passing by. On the other hand, the just in time logistics in which the Air Force is transitioning to is purposely designed at ensuring that the consumer satisfaction is actually attained with regard to their need when such needs and requirements arise or come about (Shuler, 1999).
Another element in which economics has influenced the transitioning of the DTS in a beneficial manner is through business economics. In particular, the Quadrennial Defence Review evaluated threats to national security as well as the risks and prospects for the United States. In doing so, a team was created to undertake meetings with different executives in the industry to ascertain how business has had the capacity to re-engineer their processes and practices to place them at the very top of the performance across the world in the present day (Shuler, 1999).
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