The Role of Suppliers in the Supply Chain

The idea of the supply chain is gaining importance in the global business environment. The competitive advantage of a supply chain is largely dependent on the collaboration between supply chain members, who perform different supply chain activities interdependently. A supply chain involves several members and is responsible for ensuring the smooth flow of goods or services from suppliers to customers. The suppliers perform a particularly important role in the upstream supply chain, as their work can largely affect overall supply chain performance. We illustrate an overview of SCM in Figure 3.1. In a logistics firm, the roles of the purchasing manager and supplier are interrelated. In the past, the purchasing manager's job was mainly to (1) plan and carry out manufacturing requirements, (2) evaluate the quality of goods provided by the supplier, (3) buy supplies at the lowest delivered cost and (4) arrange for warehouse goods shipments. In the contemporary era, the purchasing manager is expected to (1) perform direct insertion into key suppliers’ facility needs with interpersonal skills, (2) examine complementary strengths and weaknesses of suppliers, (3) interact with suppliers about new product designs and production and (4) use the information in a supply chain and the different financial positions of suppliers to optimize cash flow and financing for the whole of the supply chain. Thus, procurement management attempts to improve quality, reduce cost and improve the firm's entire competitive position through supplier commitment and competency (Gomm, 2010).

It is now accepted that supply chain decisions determine the firm's capital structure, cost structure, profitability, risk level and market value. In other words, SCM is evolving from a tactical, back- office function to a creation of shareholder value.

The Role of Warehouses in the Supply Chain

For a supply chain to realize maximum strategic benefits from logistics, logistics management must be integrated. Integrated logistics management must include five functional areas of logistics work (see Figure 4.1). These functional areas are related to the capabilities for achieving logistics value from integrated logistics management.

The critical exigencies in the processes of logistics centers (LCs) can enhance the role of warehouse processes in outsourcing when customer behavior changes. The complexity and the opportunity to conduct additional logistics services beyond the range of warehousing and storage of goods have prompted the creation of buildings of different functionalities. It is therefore necessary to specify which buildings are warehouse buildings (WBs), warehousing centers (WCs) and LCs. Developers engaged in the development of storage space mistakenly define LCs; therefore, fundamental functional differences between the LC and other buildings should be filtered (Kolinska, 2016). Table 4.1 shows the evolution of the definition of the scope of the LC.

The main characteristic of LCs is the intermodal terminal object, although this is not the only feature that identifies LCs, WCs and WBs. Table 4.2 shows a comparison of the individual functionality of logistics infrastructure objects (Kolinska, 2016).

As products and materials are procured, a value- added inventory flow is initiated that ultimately results in the ownership transfer of finished products to customers. However, with the emergence of globalization, reducing lead times requires the continuous improvement of material flow throughout the logistics supply chain.

Introduction

Infrastructure by itself does not generate value. Logistics platforms, industrial zones and industrial parks were, and still are, one of the main instruments, in terms of cost and effectiveness, to promote the development of industry in growing economies, as well as to promote the economic development of rural and peripheral regions. However, the results depend on a set of internal and external factors that determine the growth of these developments, so it is expected that when some of these are not available in the necessary conditions, the achievements will be minimal compared to the high levels of investment, and even poor results may imply higher costs, mainly for businesses and governments.

In this context, when industrial and logistics infrastructure is developed that do not qualify the minimum requirements nor has the urban industrial equipment, it is possible that it cannot significantly influence the level of industrialization of a country, slowing down industrial production, even when the economies of agglomeration benefit the gradual establishment of new companies and investments. Thus, industrial infrastructure, logistics and associated services must meet certain localization factors, economic and extra- economic, capable not only of attracting companies, but retaining them and promoting their full development. Indeed, much of the world's poverty is due to inadequate access to opportunities, development, hopes and dreams, due to limited access to infrastructure and a highly vulnerable environment.

The global economy is experiencing a dynamism and volatility that puts investment at risk for the growth, strengthening and development of necessary infrastructure, which guarantees the demands for basic services, competitive supply chains and the sustainability of the environment.

Introduction

Logistics associations have appeared in the world in the nineteenth century. The growth of these association has spread from the western to eastern regions. In order to align with the ever- changing logistics business practices and employer expectations, logistics associations organize various activities (i.e., seminars, site visits, conferences, social gatherings etc.) and collaborate with academic institutions to deliver different courses and practical examinations. Nowadays, logistics professionals tend to acquire both academic and professional qualifications. It makes good sense for them to obtain various professional qualifications from different logistics associations. In other words, the number of logistics associations is trending rapidly upward since the twentyfirst century.

Why Join a Logistics Association?

Until now, various students and industry participators have been eager to strive to obtain various academic qualifications. The majority of them seriously overlook the significance of professional qualifications obtained from different logistics associations. In this section, we explore the rationale behind you joining a logistics association in the following reasons:

What Are the Top Challenges for Today's Logistics Associations?