Identify and Discuss the Change of Activity and Costs Structure within Essay

Identify and dissertate the Change of Activity and represents Structure within the Supply Chain ifLB Looked to a Third companionship Logistics - Essay ExampleThis paper examines critical issues related to Lauritzen Bulkers - LB, one of the leading dry quite a little transfer firms in the world with its head quarters in Netherlands (Wolf, 2008). The paper first presents a brief literature review about SCM and then it discuses the change of activity and damages structure within the tag on compass if LB looked to a third party logistics provider to supply their transport needs. The paper similarly examines the finish to which this would impact LB gaining ISO 14000 recognition. LB is a very deep shipping company that owns a large number of carriers and it has taken up partnerships with other shipping firms and uses third party logistics. As per the annual insure (LB, 2011), by 2011, LB controlled through its owned assets and with those of its network partners, 100 ships of different sizes such as Handymax, Handysize, Capesize and Panamax bulk carriers. Through its subsidiary Lauritzen Kosan, LB controlled a combined fleet of 44 semi-refrigerated ships. Gas carriers for Ethylene, fully pressurised blow carriers, and several smaller refrigerated gas carriers. The firm also controlled 2 numbers very large oil carriers, DP shuttle tankers, and 18 MR product tankers. 2. Literature Review An efficient supply mountain chain can reduce make ups, increase efficiency and help to retain customers. Organisations across the world have issue to depend on supply chains to service their production lines, fill customer orders and retail shelves. some(a) important aspects of SCM are discussed in this chapter. 2.1. Nature of supply chains and networks A critical review of Hugos (2011), supply chain management is not merely about picking items from one point and dropping it to another. It is to a greater extent about estimating demand correctly, understanding the lea d-time for procurement and then placing the order for manufacturing. If the lead-time estimation is excessive, then armoury is much and lead to excessive cost while lesser lead-time means the risk of stock out. There is also the economic order that indicates the minimum quantity required in a shipment. Shipping and logistics firms are combine with the operations of large buyers so that efficiency is maintained, the quality of service is prompt and reliability of service is unfailing. 2.2. Cost structures in Supply Chains Supply chain analytics often focus on reducing cost structures of the supply chain. This is mainly done because in a procurement cycle, other than the basic product cost, the cost of the supply chain makes up a major component of the cost. The percentage of cost varies from 35% to 55% of the product costs. For perishable items such as dairy products, meat and poultry products, livestock, the costs are much than 67%. Much depends on the distance travelled, the na ture of product, pressure for on time delivery, possibility of wastage and deprivation and other factors (Deloitte, 2012). A critical review of Xia (2003) shows that some of the cost structures in an nerve are inventory carrying costs, production costs, inspection costs, logistics costs, transportation and handling costs, storage costs, onward forwarding costs and other costs due to delays in berthing, availability of shipping and so on. Some of the costs are borne by the organisation while some are borne by the