Logistics Strategy
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Logistics Strategy
A logistic strategy refers to the set of regulatory codes, driving powers and ingrained outlooks that help coordinate goals, policies and plans between associates across a particular supply chain.
Importance of Logistics Strategy in Organizations
To help meet customer demands – in the present day, customers have become more individualistic, demanding, quality, timely and generally better services. Towards organizations meeting this end, simple through complex logistic strategies are developed by managers.
To create visibility – efficient movement of various materials of use, products, and services around a business supply chain is of great importance to most businesses today. They track this movement using the Advanced Transportation Management Systems (TMS) which records the real-time movement of goods into and out of business. Companies with the best efficient logistics systems are listed yearly and awarded, which also increases their visibility.
Increase in revenue – a logistic strategy entirely increases the revenue earned by an organization. That is as a result of improvement in customer service which builds the business’ reputation that in turn generates more business. A proper logistics system is also economical and thus saves on costs incurred (Logistics, n.d.).
Results of an organization not tying its Logistics decisions to its Customers’ Needs
Reduction in market space – When your customers do not find your organization to be meeting their needs in a timely and efficient manner, they will end up seeking other businesses that will do so.
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In case they are ‘stolen’ by your competitors, your market niche will reduce significantly.
Stagnation of business – When an organization is not dynamic enough to change in line with customer needs and preferences, it ends up not to grow further. The organization might only remain with its original customers if it remains lucky enough not to lose them to competitors.
Coca-Cola Logistics Strategy
One of the organizations with a great logistics strategy is Coca-Cola. As I worked at one of their wholesale outlets, I noticed how they are strategically writing general names of people on cans of their sodas; this logistic strategy is in sync with the markets grown individualistic nature. Personalizing the cans in a way makes the customers feel like part of the organization and remain more loyal to it (CHRISTOPHER, 1988, p. 22).
References
CHRISTOPHER, M. (1988). LOGISTICS AND COMPETITIVE STRATEGY. Logistics World, 1(4), 204-206. doi:10.1108/eb007444
Logistics, P. (n.d.). Why is Logistics Management Important? Retrieved from http://info.plslogistics.com/blog/why-is-logistics-management-important
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