Tuesday, 10 January 2017

How conceptual approaches formulate logistics strategies? – Part 1

Logistics strategy starts with the company’s main strategy, then moves on to the definition of the logistics strategy that will be used to reach the overall objectives. Therefore, we think of logistics as a support system that is used to achieve global strategy. The logistics strategy is a subset of the company’s overall strategy. It requires a top down approach, so the control of the flow of materials and the goods along the supply chain is the keys of success.

Logistics opens up new strategic lines of action too. In order to come up with these new logistics lines, it’s necessary to reverse the approach and use strategic logistics instead of logistics strategy. Strategic logistics are the visualisation and the development of strategic actions that are only possible thanks to competent logistics. Logistics is now playing a strong role in competitive advantage and this has called for a change in the strategic games being played by the industries, or the need to adapt to new strategies. Therefore, it’s now necessary for logistics to be thought about right at the point of coming up with the firm’s overall strategy being created, instead of after.

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