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Chapter 4 Logistics Strategy Management Unit1 Strategic Logistics Management Unit2 Logistics Improvement Unit1 Strategic Logistics Management 1 New Development of Global Market 2 Role for Logistics 3 Strategy of Logistics 4 Implement of Logistics Strategy 5 Case Study 1 New Development of Global Market The competitive environment for manufacturing firms has changed drastically in the past 10 to 15 years1. Customers in geographically dispersed, emerging and established global markets now demand higher quality products at lower cost in a shorter time. As a result, firms have been forced to reorganize their manufacturing activities and realign their global strategies. 2 Role for Logistics Logistics has, in the past, been considered a narrowly-defined functional activity concerned with tasks such as transportation, warehousing, inventory, and materials management2. A new concept, the “logistics environment” must also be considered. Changes in logistics capabilities, technologies, and management techniques have allowed logistics to become a primary mechanism for integrating and coordinating activities across stages of a supply chain3. 3 Strategy of Logistics 3.1LowCost and High Quality Tactics 3.2 Flexibility Tactics 3.3 Good Delivery Performances Strategy of Logistics In our framework, strategy refers primarily to business strategy, which specifies how a business unit will achieve and maintain competitive advantage within its industry. We are particularly interested in this paper with those elements of strategy that relate specifically to manufacturing capabilities and decisions. Low Cost and High Quality Tactics Cost as a competitive priority can be interpreted as the firm’s intention to be the lowest cost producer in its industry. It is a readily understood competitive dimension and probably needs no further discussion. products. Flexibility Tactics Flexibility can also have different interpretations, but we choose to consider two different c
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