The impact of non-production departments on effective logistics and Essay

The impact of non-production departments on effective logistics and operations performance - Essay Example The non-production departments would be identified and their impact on effective logistics would be discussed; that would assist in not only identifying the problem, but also finding a solution for it. The process by which acquisition movements and other functions such as storage of parts, materials, and finished inventory are strategically managed through the utilization of proper marketing channel, which is the future objective of generating revenue and profit, is called effective logistics (Blecken 134-137). It also includes the objective of effectively fulfilling the orders by minimizing the cost. In case of effective logistics, the focus is on efficient system and attention is paid towards movement, which is the backbone of the system. Instead of distribution, finance, production, and purchase, logistics deals with a flow of information and materials. According to the concept of logistics, every segment in an organization should work together, and the marketing manager should be prepared to consider lower performance or lower level of service while preparing activity framework, so that the lag times are also considered. This would give the project manager a proper estimate of time, which is most important in logistics (Burg â€Å"5 Logistics and Shipping Mistakes Small Businesses Make"). Operations Management Performance and Effective Logistics Effective logistics is a part of operations management and the performance of the enterprise depends on logistics and other aspects of operations management. Operations management involves management of design and productive systems, along with control, and planning of daily operations within the transcorporate networks and company. Supply chain network is an integral part of operations management. In small enterprises, the operational management, such as daily productions, etc is usually handled by the human beings. Operations management and logistics are considered an area of concern by the stakeholders of the co mpany. In order to measure the performance of operational management process and logistics system, appropriate performance indicators should be selected in such a way that it stands in line with the objectives of the business. The performance measures would assist in evaluating the objectives and degree to which those are attained (Charantimath 440-443). The operational management performance of the company can be accessed by examining certain areas such as cost, flexibility of process, delivery, and quality of products. Logistics system of any organization influences the objectives of the company through the above mentioned areas. This also indicates that logistics affect the performance of any organization significantly. Considering the four areas of logistics which are considered in operations management, the quality of process, and product should meet the high demand standards. The cost of the inventory and the work process should be lower. The objective would be to have high ca pacity, and low cost of administration. Delivery rate should be high and accurate, and lead time has to be short. Finally flexibility in terms of achievement of customer benefit, maintenance of relationship with partners should be of high degree (Deepen 14-16). Non-Production Departments In order to identify the impact of non-production department on logistics and operations management performance of organizations, first the non-production overheads have to be identified, and discussed why they are considered such. The non-production