Assignment : 2

Name : M.Rahid
Registration Number : 2225120
Course : Distribution and supply chain network design
Class : MBA Second (Supply chain)
In the business world logistical consideration plays a vital role. In recent years there is a huge
change in the business environment mainly that change has seen in raw materials and in the
standard of customer service.in this article, the author shows that many of the companies have
changed their strategies by looking forward to changes they have accepted the challenges by
developing competitive strategies based on standardization, and differentiation. The author
gives an example of an engineer who began to build from scratch. His first product was liquid
bleach. He didn’t know much about the business at the time. He just applied a different
strategy in which his name is dominated by manufacturers in New Jersey.
The increased importance of logistics in company strategy has several causes. There are more
and more options available to fulfill cost and service demands, including containerization,
minicomputers, air freight, and global satellite communications networks. A possible energy
deficit. Transport expenses may play a bigger role in deciding where to locate plants and
warehouses when there are energy shortages. More in-depth examination of the long-term
trend towards complicated product lines.
Patterns in Uncommon Responses
Several businesses are now able to adopt less conventional logistical remedies to perceived
competitive cost or service disadvantages because of the scale and complexity of corporate
operations, problem-solving approaches, and computer technology. Following are a few of the
strategies,
1. Postponement and speculating tactics
2. Standardization
3. Consolidation
4. Distinctiveness
Factoring Logistics into Strategy
Management must take two steps in order to use logistics as a powerful competitive lever and
a key element of strategy. Secondly, it has to modify logistics plans to help short-term company
objectives that are already in place. Second, it must continuously and permanently include
logistics in the formulation of commercial operational strategies. Following are the steps to
ensure the performance is:
1. Logistics strategy audit,
2. System redesign,
3. Longer-term actions
4. Corporate Strategy of the Future
Paying attention to logistics may support growing product lines in prosperous times or serve as
a foundation for building a competitive profit edge during slow development periods. Whether
the objective is to expand market shares or profits from current or lesser market shares,
logistical considerations might be fundamental to these successes. It is not too early to set up a
procedure to ensure that logistical issues will not be missed when drafting strategy, if general
management must spend a growing amount of its time dealing with low- or no-growth
scenarios as many have forecast.