SUMMARY LOGISTICS & SUPPLY CHAIN MANAGEMENT IBM1 WELL EXPLAINED AND VERIFIED AS 100% CORRECT BY EXPERTS LATEST UPDATE 2024 GRADE A+

SUMMARY LOGISTICS & SUPPLY CHAIN MANAGEMENT IBM1 WELL EXPLAINED AND VERIFIED AS 100% CORRECT BY EXPERTS LATEST UPDATE 2024 GRADE A+ UNIT-I Logistics and competitive strategy Definition of logistics Logistics is the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory (and the related information flows), through the organization and its marketing channels, in such a way that current and future profitability are maximized through the cost-effective fulfillment of orders. Firms can achieve competitive advantage through: Differentiation, in the eyes of the customer, from its competition By operating at a lower cost and hence at greater profit. 1.1 Logistics and competitive advantage Productivity Value Lower cost Profile 4. Differential plus There is substantial evidence to suggest that big is beautiful when it comes to cost advantage. This is partly due: To economies of scale To the impact of the "Experience Curve In this regard Logistics management can provide a multitude of ways to increase efficiency and productivity and hence contribute significantly to reduced unit costs. 1.2 Gaining competitive advantage through logistics: Competitive advantage cannot be understood by looking at a firm as a whole. It stems from the many discrete activities a firm performs. In this case we can use the value chain analysis to disaggregates a firm in to its strategically relevant activities Productivity advantage: Capacity utilization, inventory reduction, closer integration with suppliers. Value advantage: Superior customer services