Logistic Strategies

Table of Contents

Header Sheet ………………………………………………… P.1

Table of Contents ………………………………………………… P.2

Introduction …………………………………………….…. P.3

Strategy:

1) Responsiveness ………………………………………………… P.3 -4

Best Practice – Zara ………………………………………………… P.4 -5

2) JIT ………………………………………………… P.6

Best Practice – Dell ………………………………………………… P.6 -7

3) Cost Effective ………………………………………………… P.7

Best Practice – IKEA ………………………………………………… P.7 -8

4) Reverse Logistics ………………………………………………… P.8

Conclusion ………………………………………………… P.8

Reference ………………………………………………… P.9

No. of Words: 3400

Introduction

The word ‘Logistics’, for those who are not working in this field may only think about cost saving. The Logistics manager just need to minimize different types of logistics cost, such as storage cost or labour cost, in order to increase the overall company profits. They may also think that the core responsibility of logistics department is only handling the product with regular flow, e.g. good receive → product storage → product packing→ transportation, and which is not helping in sales volume generation. It is because they are not fully understood about the function and role of logistics. Actually, logistics strategy has a closely relation with company’s business strategy.

“Logistics strategy is the set of guiding principles, driving forces and ingrained attitudes that help to coordinate goals, plans and policies, and which are reinforced through conscious and subconscious behavior within and between partners across network” Hayes and Wheelwright (1984).

The value of logistics in a company is not only for cost minimization, if it is working parallel with the company’s goal or objective, the efficiency or profit may also be increased. So, it is very important to plan the suitable logistics strategy. Logistics manager need to concern about company’s objective and also the