IMPACT OF LOGISTICS MANAGEMENT ON ORGANIZATION PERFORMANCE
CHAPTER ONE
1.1 Introduction
Logistics management is a supply chain management component that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination. Logistics management helps companies reduce expenses and enhance customer service (Fugate, et al, 2010). Maritime logistics has been traditionally regarded as the primary means of transporting parts and finished goods on a global scale and has recently attracted considerable attention from academics and practitioners alike. However, the term ‘maritime logistics’ is not easy to define and its precise definition, scope and role within global supply chains are yet to be established (Song and Lee, 2009). Organizations perform various logistical operations so as to meet their customers’ needs and sustain development.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Globalization and the technological revolution in the transport sector including containerization, logistics integration and the consequent expansion of the maritime industry have redefined the functional role of shipping and ports in global logistics and supply chains and have generated a new pattern of freight distribution. The rapid increase in world trade in the past decade has restructured the global maritime industry, having brought about new developments, deregulation, liberalization and increased competition. There have been dramatic changes in the mode of world trade and cargo transportation, characterized by the prevalence of business-to-business and integrated supply chains. These changes have been embodied in the increasing demand for value-added logistics services and the integration of various transportation modes such as inter- or multi-modal transport systems. As a consequence, the business stability and sustainability of the industry is largely subject to how well it adapts to such a dynamic environment. Therefore, high-quality logistics services and the effective and efficient integration of transport and logistics systems offered by a maritime operator has become an important issue.
Historically, however, the initial attempt to define maritime logistics was made by Panayides (2006), who suggests that, for a better understanding and ultimate definition of the term, the starting point should be to consider the underlying scope and characteristics of the two areas making up the term (ie ‘maritime transport’ and ‘logistics and supply chain management’). On the one hand, maritime transport (ie shipping and ports) is clearly concerned with the transportation of goods and/or passengers between two or more seaports by sea; on the other hand, logistics is the function responsible for the flow of materials from suppliers into an organization, through operations within the organization and then out to customers. A supply chain is composed of a series of activities and organizations that materials move through on their journey from initial suppliers to final customers. Supply chain management involves the integration of all key business operations across the supply chain. In general, logistics and supply chain management relate to the coordinated management of the various functions in charge of the flow of materials from suppliers to an organization through a number of operations across and within the organizations, and then reaching out to its consumers (Harrison and van Hoek, 2011).
Based on this clean-cut understanding, Panayides (2006) further elaborates on the issue of convergence of maritime transport and logistics. These two terms are largely attributed to the physical integration of modes of transport facilitated by containerization and the evolving demands of end-users that require the application of logistics concepts and the achievement of logistics goals (Lee and Song, 2015).
One important management practice that can be applied in organizations today is Logistics management. Logistics management provides business organizations with the total operations costs and increases the efficiency of the company’s business activities. Collaboration among all the supply chain players coupled with a responsive approach can enhance organizational competitiveness through reduced lead-time facilitated by smooth flow of material from upstream towards the downstream end of supply chain. This approach will ensure end customers get value for their money and also reduce the level of uncertainty in the industry (Waiganjo & Gatobu, 2014).
Therefore, in Lagos State where the research was carried out, the activities that was conducted is to know the Impact of Logistics Management on Organization Performance.
1.3 Statement of Problems
Investigation revealed that the growth of world container trade during the last decades reflects the coalescent markets in the world. The geographic separation of supply and demand has raised the expectations towards transportation services. Keeping up with the growth of global container traffic was considered as one of the biggest challenges. In addition, customers expect fast and reliable services in a wide geographical network.
Vessel capacity and utilization provide only one possibility for competitiveness. Vertical and supply chain integration are characterizing the modern transport industry, as transport businesses are gearing up towards global logistics services based on the principle of the ‘one-stop-shop’. In order to accomplish this goal, it is necessary to integrate port, hinterland transportation and logistics management services. It follows that strategic aspects of supply chain integration and diversification are of significant importance in the contemporary shipping industry.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Impact of Logistics Management on Organization Performance using Fortune Global Shipping and Logistics Limited in Oshodi-Isolo, Lagos as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To analyze the extent to which logistics management has affected Organizational effectiveness in the area under review;
- To examine the impact of logistics information flow management on employee’s efficiency in the study area; and
- To evaluate the significant relationship between logistics inventory management and organizational productivity in the area under review.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Does maritime logistics have an encouraging performance in the study area?
- Is there significant relationship between logistics inventory management and organizational productivity in the area under review?
- To what extent does logistics management affects Organizational effectiveness in the area under review?
- What is the impact of logistics information flow management on employee’s efficiency in the study area?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between logistics inventory management and organizational productivity in the area under review.
- H1: There is significant relationship between logistics inventory management and organizational productivity in the area under review.
Hypothesis Two
- H0: Maritime logistics does not have an encouraging performance in the area under review
- H1: Maritime logistics has an encouraging performance in the area under review
1.7 Significance of Study
The study will be very significant to students and Maritime Industry. The study will give insight on Logistics management and performance in Fortune Global Shipping and Logistics Limited. The study will also serve as a reference to other research that will embark on the related topic.
1.8 Scope of the Study
The scope of this research is focused on the Impact of Logistics Management on Organization Performance using Fortune Global Shipping and Logistics Limited in Oshodi-Isolo, Lagos as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Maritime Logistic: More broadly speaking, maritime transport logistics in Texas can be defined as anything that encompasses the processes of moving goods from one place to another utilizing cargo ships.
Maritime Transport: Maritime transport, fluvial transport, or more generally waterborne transport is the transport of people or goods via waterways. Freight transport by sea has been widely used throughout recorded history
1.11 Organization of the Study
This research work is organized in five chapters, for easy understanding, as follows:
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
Chapter three deals on the research design and methodology adopted in the study.
Chapter four concentrate on the data collection and analysis and presentation of finding.
Chapter five gives summary, conclusion and recommendations made of the study.
CHAPTER TWO
2.0 Literature Review
2.1 Introduction
The review of relevant literature is the main topic of this chapter. A literature review covers theoretical and methodological contributions to a certain issue in addition to the state of knowledge at the time of writing. It provides information about the state of the art in relation to the subject you are writing about. It examines the body of work on the chosen subject. The literature evaluation in this study comprises the …
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