logistics

Department of Business Administration

MGT 322, Semester 2nd , 2018-19

Assignment : 1

Course Code: MGT322	Student’s Name:
Academic Year: 1439/1440 H	Students Number:
Semester: 2	Students Grade:
CRN: 22660	Level of Mark :

LOGISTIC PERFORMANCE PRIORITIES

Executive summary:

Logistics management is one of the latest branches of administrative science. It includes an integrated system of activities inside and outside the organization, such as purchasing, storage, transportation, distribution, handling, packaging, customer service and scheduling. It is the task of logistics management to coordinate and integrate these activities in order to provide the products and inputs of production at the right time and place in the required situation, in addition to the role of logistics management in customer service, which helps to provide the competitive advantage of the organization and increase profits.

We should know that the concept of logistic management is planning, directing, implementing and controlling economically the movement of raw materials (semi-processed goods), finished goods and related information from the source of processing to the final customer in order to satisfy the customer's desire.

Supply chain management objectives in terms of logistics are: reducing the total cost of product flow and information while maintaining the required the highest quality level of supply and customer service in the shortest possible time. The different modes of transport and means of supply focus on the planning, organization, management, control and implementation of direct transport and shipping operations within the supply chain. Distribution networks and production institutions are highly dependent on the efficiency and quality of the supply system to regulate the transport of materials and goods within the companies and beyond.

Al Baik Restaurants:

Al Baik Restaurants is a fast food restaurant chain established in the mid-seventies in Jeddah, Saudi Arabia. It is famous for serving chicken and seafood with potatoes. It is the first restaurant in Saudi Arabia to offer Broast. Al Baik meal was very popular and well received due to its excellent taste, reasonable price, excellent service and high quality. Al Baik branches have spread widely to cover many neighborhoods of Jeddah and then expand and open other branches in the western area, Qassim, Jazan and also in the central area of Saudi Arabia and the number of branches more than 64 branches. There are replicas of the restaurant in Egypt, India and various US states.

FLYADEAL:

FLYADEAL is a company owned by the General Establishment of Saudi Airlines, established on 17 April 2016. Based in King Abdulaziz International Airport in Jeddah, Saudi Arabia. It provides internal and economic air transport services and operates independently of Saudi Air Lines. FLYADEAL is its economic arm and one of its independent strategic units. The company commenced operations on the National Day of Saudi Arabia on 23 September 2017 by flights to local destinations.

FLYADEAL is one of the strategic initiatives being implemented under the 2020 transformation program. The fleet is expected to reach a minimum of 25 aircraft in 2020 and a maximum of 50 aircraft per arm. The FLYADEAL aircraft includes 186 18-inch Recaro seats in one class, offering different levels of passengers. The company is known for its reasonable economic prices for its domestic flights. Passengers can also get great offers, last-minute flights and discounts on FLYADEAL online booking on flights. The booking portal is easy, fast, safe and easy to use.

Problem Description:

The common fact between the two companies is that they serve all customers, including middle- and low-income customers, so they have a large number of customers. However, the problem with these companies is that they do not get the supposed profits, even though they are successful local companies with a competitive advantage and a high customer loyalty. Also, the vision of 2030 and the localization of the working environment will cost a lot.

First, Albaik restaurant: We know that the company imports chicken from Brazil and deals with foreign suppliers to provide the required spices.

OBJECTIVE: To provide import costs from abroad through local imports, and thus will lead to the rapid provision of raw materials (chicken and spices) at the lowest cost.

Second, Flyadeal: This company has a very competitive advantage for other airlines; because of the prices of economic flights, the ease of booking tickets through the site, and high customer service. Although we know that the company was able to enter the market strongly, we must bear in mind that Flyadeal is still a new company and the age of less than five years.

OBJECTIVE: To reach and win the majority of customers and maintain their position vis-à-vis other airlines, through a logistics plan that includes unique ads to attract the customer, as well as adopting the principle of transfaring the customer to his destination in the fastest time and the cheapest price.

Logistics and Supply Chain Management Concepts & Tools:

To support strategic and logistical objectives, also to follow the logistics plans and supplier chains should use both companies some tools, such as:

· Demand Forecasting

Using analyzes, SCM processes vast quantities of supply chain data in the shortest time. They can also create expectations for future demand forecasting. This tool will make it easier for both companies to know the demand for their products and services.

· Supplier Management

When we talk about logistics management and supply chains, you need a supplier management tool that helps us understand the costs of advisories and expenses. Supply chain management tools can also help both companies understand how they can best connect their suppliers and find the best local suppliers for the Albaik restaurant. Supplier management tools will help them show the history of a business partnership and how it affects the supply chain. Using Supplier Performance Analysis, they will also be able to see how any particular vendor contributed to the business model.

· Transportation and logistics tools

In order to achieve a complete supply chain management solution, companies need to type of transport management. Transport and logistics tools help both companies manage the movement of inventory and materials from one location to another. With SCM solutions equipped with transport management, companies, especially Flyadeal, can plan multi-stop flights, and combine shipments to increase space and plan for less freight. These tools also help companies address problems when they appear. Through inventory tracking, companies can see when the stock is slowing down and intervene to find the cause. There are also collaborative tools within transport units that enable all supply chain operators to manage the shipping process.

· Shipping Status Tools:

This tool is very important for companies that provides real-time alerts and timely information on all shipping activities.

· Order processing tools

Application processing is critical to any supply chain, and as such, SCM programs provide the tools to make this task easier and more efficient. These tools support all functions by processing orders such as sales order processing, order management, order fulfillment, billing and cash order orders. So, we find that companies follow this approach with their customers as Flyadeal does when booking customers for flights.

Analysis of expected results:

We should know that the level of logistics and its application in the company significantly affects the primary objective of the company's existence that is to gain customer satisfaction and loyalty and thus increase the company's profits.

Albaik and Flyadeal companies are expected to increase their branches at the internal level of Saudi Arabia and continue their economic prices for their products and services. Albaik and Flyadeal companies are also likely to expand outside Saudi Arabia at higher prices.

Albaik Restaurant If foreign suppliers are replaced by local suppliers, this will reflect positively on the company's profits. Flyadeal will increase its planes, and may also import larger aircraft with more seats.

References

· lbaik. (2019). Albaik Food System Company. Retrieved from Albaik Story: http://www.albaik.com/en/section/albaik-talk/how-we-started

· Flyadeal. (2019). Who We Are. Retrieved from Flyadeal: https://www.flyadeal.com/en/about-us/who-we-are

· Michigan State University. (2016, May 10). Is Logistic the Same as Supply Chain Management? Retrieved from Michigan State University: https://www.michiganstateuniversityonline.com/resources/supply-chain/is-logistics-the same-as-supply-chain-management/

· 13 Essential Supply Chain Management Tools https://selecthub.com/supply-chain-management/13-essential-supply-chain-managementtools/

· Wikipedia https://ar.wikipedia.org/wiki/%D8%A7%D9%84%D8%A8%D9%8A%D9%83