Logistics Design Alternatives

Logistics Design Alternatives

Introduction

The company has different systems, which the Logistics has an influence directly in the development of its activities and is therefore essential for its operations. The structure and design of Logistic System includes the Acquisition and Control, Stores, Inventories and Control, Transportation and Handling, Communications, Planning and Production Control. The Logistics system design is an integral part for any corporation and especially for energy companies, because these sector tends to explore their product which is energy and then utilize the means of end to end supply chain for reaching out the customers (Ghiani, et.al, 2004). Therefore this paper aims to discuss and analyze the Logistics System design of Hess Corporation, which is one of the biggest corporations of United States.

Discussion

Design of Hess Corporation Logistics System

The design of Hess Corporation Logistics System is based on the concept that is applied in enterprises, which is characterized by playing an integral role in the activities that have to do with ensuring a flow directed to provide customers the products and services demanded at the time they request, with the quality required and the cost they are willing to pay. The corporation focuses on making the coordination of several activities in terms of ensuring the flow that ensures a high level of customer service and cost reduction (Kasilingam, 1998). These activities includes the management of inventories by effectively managing the storage, management of internal and external transport system for distribution purpose, management of production planning and production control in order to have right amount of raw material available on time (www.Hess.com). The logistics systems also look after the quality control of production line delivering best quality products to their consumers. Hess Corporation possesses all kinds of customers like governmental, commercial and industrial. Hess Corporation performs the activities of distributing its energy products with the help of its integrated supply chain activities (Finkelstein & Guertin, 1988).

Hess Corporation has one of the best Competitive Logistics systems, which contributes directly to achieving high levels of customer service by incurring low costs. These results are achieved by developing a reference model which gives a clear idea of how to proceed and what to consider achieving these results (Ghiani, et.al, 2004). The reference model of Hess Corporation has certain goals to be achieved which serves as a standard for them to diagnose what are their main strengths and weaknesses in their Logistics Systems and where ...