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Logistics and Competitive Strategy

This document discusses logistics and competitive strategy. It explains that logistics originated from Greek and Latin words related to calculating and refers to the science of planning and managing the flow of goods and services. Logistics supports corporate goals and was originally used by armies. The document outlines sources of competitive advantage through cost leadership, product differentiation, and total solutions. It describes the customer value delivery chain and logistics functions like order processing, inventory management, and transportation that can provide both value advantages through customized services and rapid response or cost advantages through reduced costs and funds tied up in inventory.

Uploaded by

Pankaj Dogra
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© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
77 views

Logistics and Competitive Strategy

This document discusses logistics and competitive strategy. It explains that logistics originated from Greek and Latin words related to calculating and refers to the science of planning and managing the flow of goods and services. Logistics supports corporate goals and was originally used by armies. The document outlines sources of competitive advantage through cost leadership, product differentiation, and total solutions. It describes the customer value delivery chain and logistics functions like order processing, inventory management, and transportation that can provide both value advantages through customized services and rapid response or cost advantages through reduced costs and funds tied up in inventory.

Uploaded by

Pankaj Dogra
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Logistics and Competitive

Strategy

Presented By:
Neha Aggarwal
Arun Mahajan
Logistics
 Greek Word “Logistikos”
 Latin Word “Logisticus”
“Science of computing and calculating”

 Primarily used in Armies


 Support corporate Goals
Competitive Advantage
CUSTOMERS

Needs seeking benefits


At acceptable prices

Value Value
The 3 Cs

Assets and Assets and


Utilization Cost Differentials Utilization
COMPANY COMPETITOR
Sources of Competitive Advantage
 Cost Leadership/ Productivity
Advantage
 Product Leadership/ Value Advantage
 Best Total Solution
Cost and
Hi Service
Service
Leader
Leader
Value
Advantage

Commodity Cost
Lo
Market Leader

Lo Hi
Productivity Advantage
Customer Value Delivery Chain

HR Competencies, Firm Infrastructure, Procurement and Finance Resources

INBOUND OPERATIONS OUTBOUND SALES & SERVICE CUSTOMER


LOGISTICS LOGISTICS MARKETING VALUE

Technology Enabler
Logistics Functions
 Order Processing
 Inventory Management
 Warehousing
 Transportation
 Material Handling and storage
 Logistical packaging
Order Processing

 Value advantage=Short Delivery Period

 Cost Advantage=Elimination of
Excessive Inventories
Inventory management

 Value advantage=Customized Services

 Cost Advantage=Less Blockage of


Funds
Warehousing

 Value advantage=Rapid Response

 Cost Advantage=Elimination of
Excessive Transportation costs
Transportation

 Value advantage=Wider area Coverage


and Rapid response

 Cost Advantage=Low transportation


costs
Materials Handling and storage

 Value advantage=Quality Products due


to proper storage and handling

 Cost Advantage=Less Damages/Losses


Logistical packaging

 Value advantage=Damage protection

 Cost Advantage=Space Economy


Reverse Logistics

 Flow of Products or goods back to the


source for repair and disposition

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