Wednesday, 11 January 2017

How conceptual approaches formulate logistics strategies? – Part 2 Logistics Competence

What are the three interrelated dimensions of logistics competence?

There are three interrelated dimensions of competence that logistics relies upon: action, expertise and knowledge. Action deals with the way to perform logistics processes. Expertise is the resources that are related to the action, which includes:

  • Methods
  • Procedures
  • Technologies
  • Engineering
  • Organisational routines

All of the above are extremely influential for the quality, efficiency and reliability of the logistics process, they are also important for competitive advantage.

Knowledge relates to the information that must be collected, analysed and integrated during the formulation of strategy.  Knowledge includes the senior management experience along with the general management culture of the firm. Knowledge helps businesses to survive, grow and adapt. It’s also a driver behind companies investing in skills and research and development. The skills and development can then be converted into the logistics network. There’s also a need for competent information management. Information is vital for the development of logistics. It must be collected, communicated and processed. The information gathered is used to develop new strategic directions.

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