Friday, 13 January 2017

How conceptual approaches formulate logistics strategies? – Part 4

Cost leadership, logistics strategy
This is a strategy works to reduce logistic related costs. Some of the approaches that are used include:

  • Reducing the size of inventories along with the cost of invested capital
  • Using cross docking facilities that are provided by logistics suppliers and stopping the direct supply of outlets internally
  • Decreasing outlet inventory and Increasing daily deliveries using the cross docking facilities

Strategic Logistics
Using logistics and reducing overall costs

  • Using a network of continental, local and multi-regional warehouses
  • Using cross docking sites
  • Reducing purchasing costs by using the above and increasing the ability to stock large quantities of imports and buying for less from suppliers
  • Daily processing of fresh products, delivery following day after orders are placed and consolidated
  • Reducing suppliers and therefore reducing supplier costs
  • Using just in time deliveries
  • Eliminating qualitative and quantity checks

Differentiation logistics strategy
This approach is used to improve the quality of the logistics service being provided

  • Rationalising logistics to guarantee delivery times
  • Customising products, improving quality and complete deliveries
  • Automated central warehouses for daily deliveries

Innovation logistics strategy
Supporting innovation with logistics

  • Offering two day delivery service that depend on physical and information flows
  • Automation of sorting centres
  • Exchange of information with suppliers using EDI networks
  • Using the just in time model for production planning
  • Monitoring the supply chain with EDI
  • Offering customisation to customers

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