Logistics within a Steel Fabrication & Engineering Organization

Introduction

Business is moving toward treating important customers using the cross-functional marketing, logistics, manufacturing, and engineering teams. Businesses recognize that the good services can be an important source of competitive advantage, whereas poor service tends to lose the customers.

Background of the Study and Problem Statement

With the idea of the combination of the operations in marketing channels in which it is concerned with the ownership transfers, and the logistical channel in which there is a physical possession transfer, has recognized the potential benefits (Sautter, Maltz, and Boberg, 1999). Other than that, what are the other important roles of the logistics in the steel fabrication and engineering organizations?

Research Objective

The study has one main objective and plays the central focus of the paper. The research is aiming to provide a qualitative answer in the development of technical and technological support as well as logistics in the steel fabricators or in the entire steel industry.

Research Questions

There are only three essential questions that can support the study in its aim to achieve the possible answer in the industry.

1. What is the true essence of the logistics in the eye of the steel fabricators and engineers?
2. Where to find the instructional materials that support the comprehensive approach in the customer service delivery systems?
3. Is the availability of the time and accuracy are always the key to the problem?

Literature Review

Logistics is about the integration of information, transportation, inventory, warehousing, material handling, and packaging allotted for the firms. In the area of business to business and logistics, the customer service is meant to be concrete. An internally tracked performance measures particularly in the inventory availability and the issue of the on-time delivery. The logistics professionals emphasized that the customer service should include the idea of easy business transaction and to be sensitive in the customer needs. But in the case that there are changes, the specific activities such as product availability, accuracy, and others should remain aligned in the customer service in both logistics and in marketing treatments of physical distribution services of engineering organization such as steel fabrication (Sautter, Maltz, and Boberg, 1999).

Steel fabrication has a unique industrial zone that is large enough to accommodate the steel processing plant. The logistic process is very much welcome in the large industries like the steel fabrication (The Steel Conference Exhibitors, 2006; MMC, 2007). The use of information technology is important to the steel fabrication sector which is most of the steel fabrication companies have limited expertise (American Iron and Steel Institute, 2008). Through the detailing services, specialized solutions and collaborative tools, the steel fabrication can provide the engineering solutions that are designed for the simple and complex structures. The logistics plays a special role in this matter although the cost the can be incurred in this development is assumed to be higher than of the traditional processes. And in return, the steel fabrication companies believe that there will be recognition of an increased fidelity and sales (Mora, 2003). Integrating the efficient level of all the activities and process within the steel fabrication should be improved alongside in the advancement of the collaboration and enhancing of the capabilities that can allow the companies to cope with the constraints. Most of the suppliers see the business development failed in terms of sales much more on the incorporate logistics, marketing, finance, and other functions (Kumar, 2005). This trend obviously affects the entire industry and the main reason that the suppliers is pointing out is the fabrication of the materials and substandard process. In order to provide better support to their loyal clients and add competitiveness, the steel fabrication companies should provide additional services in design and engineering support as well as the optimization of structural steel components. This is possible in the development of the expertise where there is an available technology and integrated with the commercial software (Mora, 2003).

Methodology

The applied method of the study is the case-study method. Through the examination of the past literatures and case studies, the most common dilemma of the organizations were identified. Furthermore, with the use of the case-study method, an in-depth analysis can be formulated that will satisfy the objective of the entire study.

Conclusion

Timely actions, on-time deliveries, professional engineering support, inspired logistics, and resourceful problem solving at all level are the attributes that the steel fabrications and engineering organizations should possess for successful the business adventure.

References:

American Iron and Steel Institute, (2008) “ULSAB Economic Analysis” Accessed 28 Jan 2010, from http://www.steel.org/AM/Template.cfm?Section=PDFs&CONTENTID=4249&TEMPLATE=/CM/ContentDisplay.cfm

Kumar, N., (2005) “Cover Story: The Global Retail Challenge”, Business Strategy Review, Spring 2005.

MMC, (2007) “Transport & Logistics, Energy & Utilities, Engineering & Construction”, Marsh & McLennan Companies Accessed 28 Jan 2010, from http://www.mmc.com.my/pdf/MMC_Brochure_2007.pdf

Mora, R., (2003) “A Global Solution for a Global Corporation: Canam Steel Corporation Seeks to Integrate the Entire Steelwork Chain”. Accessed 28 Jan 2010, from http://www.ctn.etsmtl.ca/hrivard/ITCaseStudies/M2-CanamManac.pdf

Sautter, E., Maltz, A., & Boberg, K., (1999) “A Customer Service Course: Bringing Marketing and Logistics Together”, Journal of Marketing Education, Vol. 21, No. 2.

The Steel Conference Exhibitors, (2006) Accessed 28 Jan 2010, from http://www.modernsteel.com/Uploads/Issues/February_2006/30750_exhibitors_web.pdf