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‘Integrated logistics is key to global business’
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Posted on Mar 12 2005
To be more competitive in an era of high-technology and globalization, businesses need to attend to an often ignored but highly important area—logistics, according to U.S.-based logistics executive Jun Heramia.
“This is the differentiator. This gives you an edge over other businesses,” said Heramia during a half-day seminar on Friday at Dai-Ichi Saipan Beach Hotel.
Logistics simply means getting the right product at the right time, at the right place, and at the right cost.
While the process seems familiar, it actually requires careful planning, implementing, and controlling “the efficient, most-effective flow and storage of raw materials, in-process inventory…from point of origin to point of consumption” for the purpose of ultimate customer satisfaction.
Heramia said this department requires well-trained and competent individuals. These people must be knowledgeable about materials management, physical contribution, procurement, warehousing, inventory management, distribution planning and transportation, and customer service.
“If you go to the store and you don’t see stocks in the shelves when you need it, it’s most likely a case of logistics failure,” Heramia said.
He said logistics also includes knowing the best airline or freight forwarder to use to get products to the customer. “It’s not about getting cheapest material or service, but about cost-effectiveness,” he said.
The entire process is called integrated logistics, which ultimately creates synergy, customer satisfaction, and maximized returns.
In a high-tech world where distance is no longer an issue, businesses must practice integrated logistics.
In a way, he said, it is about managing “the uncertainty of supply and the uncertainty of demand.”
He said logistics “is a developing, very challenging field.”
Last Friday’s seminar was attended by representatives of key businesses in the CNMI headed by Saipan Chamber of Commerce president Alex Sablan. Also present were representatives from the government, including the Public School System.
