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Strategic Management - Functional Strategy

Logistics Strategy - Finance Marketing, Human Resource, Management Information Systems and logistics

   Posted On :  26.06.2018 10:50 pm

Logistics strategy deals with the flow of products into and out of the manufacturing process.

Logistics Strategy
 
Logistics strategy deals with the flow of products into and out of the manufacturing process. Three trends are evident: centralization, outsourcing, and the use of the Internet. To gain logistical synergies a cross business unit, corporations began centralizing logistics in the head-quarters group. This centralized logistics group usually contains specialists with expertise in different transportation modes such as rail or trucking. They work to aggregate shipping volumes across the entire corporation to gain better contracts with shippers. Companies like Amoco Chemical, Georgia – Pacific, Marriott, and Union Carbide view the logistics function as an important way to differentiate themselves from the competition, to add value, and to reduce costs.
 
May companies have found that outsourcing of logistics reduces costs and improves delivery time. Many companies are using the Internet to simplify their logistical system. For example, Ace Hardware created an online system for its retailers and suppliers.
Tags : Strategic Management - Functional Strategy
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