The Relationship between Logistics Strategy and other Corporate Strategies :: Business and Management Studies:

The Relationship between Logistics Strategy and other Corporate Strategies GLOBAL LOGISTICS For global firms, describe the relationship between logistics strategy and other corporate strategies in the areas of technology, marketing and manufacturing. * Logistics systems serve as the global infrastructure upon which the other systems operate * Logistics systems in itself give a source of competitive advantage * Understanding the service needs of customers in locations around the globe to develop an effective marketing, manufacturing and logistics strategies to satisfy the needs of the customer * Managing logistics as a system, shortening lead times when possible and moving towards the use of â€Å"focused† factories that produce limited product lines * Manufacturing – is a strategy in which one or a few plants are designated as the worldwide supplier/s of a given product or product line What are the major elements of the dynamic diamond suggested by Michael Porter? Which do you feel are most important to the success of companies operating globally? * Major element of the dynamic diamond: 1. Factor conditions – nation’s ability to transform its basic factors (eg. Resources, education or infrastructure) into competitive advantage 2. Demand conditions – market size, buyer sophistication, and media exposure of available products 3. Related and supporting industries – may include partners in the supply chain, co-packers and/or co-manufacturers, or marketing and distribution intermediaries 4. Company strategy, structure and rivalry – market structures and the nature of domestic competition  · Each factor contributes greatly and is vital to the success of companies operating both globally and locally. The efficient use of all these elements are what makes a company’s success even better. Describe the role played by intermediaries in global logistics systems. Why are intermediaries not needed in domestic logistics systems?  · Intermediaries help play a much larger role in global logistics operations  · Provide lower transportation unit costs than manufacturers would be able to achieve  · Some of the intermediaries roles are production, product and support logistics, customer contact, transaction processing, local management and risk management  · Plays a strategic role in helping new and established companies venture into the global arena