User talk:Pee-Jay

== THE ESSENCE OF LOGISTICS AND SUPPLY CHAIN MANAGEMENT IN BANKING INDUSTRY ==

Background
Most of the banks around the globe are experiencing dawn falling and losing vital customers just within a single blink of the eyes. This is because lean within their core competencies outweighs customer services. Customers are external factors to the business and the businesses do not have control over them. The only way to influence the customer’s desires and achieve customer retention is to give them what they always want and when they need it, we call this Just-In-Time technique. Banking institutions really need an agility supply chain, which assures that customers’ requirements (the amount of money they might need, information they need and right period they need all they want) are met in the most appropriate manners. Logistics is simply part of supply chain that comprises of the movement of inbound logistics (money, BOB cards and contract forms) and outbound logistics (movement of money to the ATMs and Information to customers), while supply chain is all about the coordination, planning, controlling and implementation of logistics activities. (Crosby, 2008)

The provision of money to various ATMs
The major role of a logistics department in financial institutions is to make sure that the three utilities namely; place, time and quantity are consistently accomplished. These utilities call for forecasting techniques, which are the best solutions to bring about more improved customer services and to multiply a firm’s profit margin. Managers must make sure that sufficient quantity of money is available to all the ATMs at the time and the right place. This is to say that Managers should be able to equip ATMs with adequate amount of money particularly during paydays such as 20th, 25th, 28th and 30th per month. Logistics requirement planning (LRP) is a scheduling practice that guarantees that the right goods and services are available at the right place, at the right time and in the right quantities.

Time management
Logistics department must make sure that customer requests or orders are attended shortly. If one wants to deposit money inside the bank, he/she should queue up for hours before reaching the deposit point. As a Logistics manager, you should be able to do process re-engineering, so that ineffective processes are sorted out and the concept of lean is addressed. This could be either implementing more teller points, introduce e-banking or open up new branches around towns as well as to remote areas. In addition, fruitful information (changes in bank chargers, new modes of banking, new services like promotions and so forth) should be communicated to customers on time so the chances of customers likely to switch to other banks are kept minimal.

Reduce costs
Cost reduction is necessary, especially to the end users. Customer need quality services at relatively low costs. For instance, customers located in remote areas can be reached via mobile marketing. Logistics comes in the provision and budgetary of all the required materials such BOB cards, contract forms, fuel consumption and information, that will be used in the process of going to and from customers live far away towns and who would want to open up new bank accounts or to renew their BOB cards. In this way, superior customer services delivered at zero cost, because they do not need to spend money on transportation going to the main branch for the services they might need.

Maintaining and repairing of the AMTs
ATMs are the points where customers receive service, which is the withdrawal of money of course. Remember that ATMs are the last points of the supply chain in banking industry. Logistics manager should be able to assure that all the ATMs are fully operating to their maximum capacities and they should be able to cater for surplus demand, particularly month end. If you walk around the towns or wherever the ATMs are, you would see that out of 100%, approximately only 60% or less ATMs are in operating. Either the only disappointing message displayed is out of order or an ATM is under maintenance. This hurts customers’ satisfactions and this is the main reason of an alarming rate of customer switching from one to another. Logistics manager must make sure that all the ATMs serviced in advance and they are all equipped with sufficient amount of money.

Conclusion
In conclusion, the motive behind logistics is to deliver products and services to customers with a least lead-time at the right place, in right quantities and at lowest costs than competitors. Logistics and supply chain management are the heart for every business, but not necessarily the manufacturing industry only, but services firms are also part of the package.

Logistics and Supply Chain are the backbone of every business.

==References==

Pee-Jay(talk) 15:45, 8 October 2012 (UTC)