Increasing the Company's Profitability through Logistics Management

Author:Mihail Romulus Radulescu - Victor Constantin Ioane - Ioana Ceausu - Ioana Florentina Savu
Position:Postgraduate student, Academy of Economic Studies Bucharest, Romania - Postgraduate student, Academy of Economic Studies Bucharest, Romania - Postgraduate student, Polytechnic University of Bucharest - Postgraduate student, Academy of Economic Studies Bucharest, Romania
Pages:582-587
SUMMARY

The objective of the paper "Increasing the company’s profitability through logistics management" is to present the significance of organizing an efficient logistics activity and the challenges that the companies are facing in order to obtain full advantage from using logistics as a competitive tool. The companies’ dependence from the strategic decisions belonging to the supply chain stands as a... (see full summary)

 
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European Integration - Realities and Perspectives 2012
582
Increasing the Company’s Profitability
Through Logistics Management
Mihail Romulus Rdulescu
1
, Ioane Constantin Victor
2
,
Ioana Ceauu
3
, Ioana Florentina Savu
4
,
Abstract: The objective of the paper “Increasing the company’s profitability through logistics management”
is to present the significance of organizing an efficient logistics activity and the challenges that the companies
are facing in order to obtain full advantage from using lo gistics as a competitive tool. The companies’
dependence from the strategic decisions belonging to the s upply chain stands as a reason for the ever growing
interest towards Supply Chain Management and towards applying inn ovative processes that will offer an
advantage when faced with increasingly tougher competition from domestic or foreign companies. The
company’s characteristics can be subject to deep changes through decisions pertaining to the supply chain;
these decisions are vital to the company’s productivity and co mpetitiveness. If the logistics’ role in increasing
the company’s profitability is acknowledged, then implementing complex technologies and investing multiple
factors into improving logistical performance is fully justified. Customer orientation a nd focusing on key
activities, which need to be performed daily in order to meet customer demand are absolutely necessary in a
system which implies fast reaction to market changes. The managerial way of thinking has changed
significantly in the last years, because of the highly global c ompetitiveness, the pressure to reduce costs,
focusing on the company’s central c ompetence. The principle of functioning is an aggregate system a pproach
for the entire flow of information, materials and s ervices beginning with supply of raw material, processes
and movements inside the factories and warehouses, until the products reach the final customer.
Keywords: logistics; supply chain management; outsourcing; distribution; added value
JEL Classification: M21- Business Economics
1. Introduction
The “Logistics” term comes from the way the companies relate to each other. If we start our research
with the provisioning department and we go all the way of provisioning we identify a number of
suppliers but for each one of them we find one or more suppliers. The result is provisioning network
or a series of chains. These networks can become easily very complex. The purpose of supply chain
management is to reduce the risks that may occur in the processes, by acting in a positive manner in all
that concerns inventory, time cycles, processes, but mostly in satisfying the final customer. The focus
is on optimizing the system. The instruments that assist the efficiency of the chain activities are
Forecasting, General Planning, Inventory, Daily/Hourly/ Planning. In order to develop forecasts a
common database must be used. The forecasts become therefore entry dates for general planning. This
general planning establishes restrictions and directions for the Inventory, thus through it can be
determined the need of workers and the equipment planning.
1
Postgraduate student, Aca demy of Economic Studies Bucharest, Romania, Address: 6, Piata Romana, District 1 , Bucharest
010374, Romania, Tel.: +4.021.319.19.00, Fax: +40 21 319.19.89, Corresponding author: radulescuromulus@yahoo.com.
2
Postgraduate student, Aca demy of Economic Studies Bucharest, Romania, Address: 6, Piata Romana, District 1 , Bucharest
010374, Romania, Tel.: +4.021.319.19.00, Fax: +40 21 319.19.89, e-mail: ioane_victor@yahoo.co.uk.
3
Postgraduate student, Polytechnic University of Bucharest, 313 Splaiul Independentei, Sector 6, Bucharest 060042,
Romania, + 4 021-402 91 00, Fax: + 4021-318 10 01, Romania, e-mail: ioana.ceausu@gmail.com.
4
Postgraduate student, Aca demy of Economic Studies Bucharest, Romania, Address: 6, Piata Romana, District 1 , Bucharest
010374, Romania, Tel.: +4.021.319.19.00, Fax: +40 21 319.19.89, e-mail: buduioana@yahoo.com.

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