Logistics and supply chain management Essay Example | Topics and Well Written Essays - 1500 words

Logistics and supply chain management - Essay Example Vulnerability of organisational logistics process and SCM resilience Analysis Vulnerability in organisational logistics processes needs to be tackled to make business functions lean, flexible and responsive. Companies are immensely dependent on each other and are vulnerable in increasingly integrated supply chains. The time and relationship dependencies are significant to manage vulnerabilities (Svensson, 2002). The time and relationship dependencies between two companies in the supply chain network can be described through the interactional model of Hakansson. Dependence of companies cannot be easily constructed until their functioning is performed to check their assumed time and relationship dependencies towards their suppliers and customers. The functionality process of the dependence construct has turned a bit with the research performed by Hammarkvist et al. (1982)) and Mattsson (2000)). There have been five dependency dimensions identified by Hammarkvist et al. (1982)), which a re: 1. Technical Dependence. It happens when two companies sell compatible products and adjust their business functions with each other in technical way. ... 3. Knowledge Dependence. It is related to the communication process between two organisations, gaining from the strengths and weaknesses of each other. This interaction helps in finding ways of resolving issues. With regard to this dimension, we can say that Seal Honey used this dependency appreciatively by engaging supermarkets as point-of-sales and realised increased sales. 4. Social Dependence. It is related to increased communication between two companies because of individual level contacts. It means that social environment and increased compatibility level between the executives of two companies create an impact on their business functions. Again, Seal Honey was able to use its contacts to sell its products through superstores and leverage from this dependency. Economical/Judicial Dependence. This is related greatly to the formal written format of depending, entered into by the companies themselves to strengthen their dependence of business functions in the economical and judic ious way. Case studies on both the companies do not indicate that they have entered into any such formal contract with their suppliers to comment on this dependency of the Seal Honey and Fresh Mart (Svensson, 2002). Mattsson has added two extra dimensions to the list of Hammarkvist et al.’s, namely: 1. Market Dependence. It is related to a company’s reputation and ranking that might have a positive impact on the other company’s reputation and ranking. It can also enhance the brand value of the other company in the market. Of course, both the companies are leading players in grocery market and dependent on market forces to a great extent as dealing in perishable goods. 2. IT Dependence. When the two companies follow the same IT