Strategic Purchasing and Logistics Insights

The assignment content discusses strategic purchasing and logistics, including global sourcing, competitive advantage, and supply chain management. It highlights the importance of sustainable competitive advantage, multi-drop routes vs single-drop routes, safety stock, and reducing facility operating costs by minimizing inventory.

Assignment
Strategic Purchasing and Logistics

Answer 1:
Global sourcing is regarded as a new field of study and has become imperative due to
globalization. Sustainable competitive advantage is a familiar relative term in strategic
management, but it’s difficult to define. Competitive advantage is the edge bestowed to you and
your organization when compared with competitors. The competitive advantage can be
sustainable if it is not established by other competing firms as it is impossible to substitute.
Answer 2:
To analyses when it makes sense to use multi-drop routes and when are single-drop routes better.
We need to take a look at vehicle expenses. If stores are located nearby, then trucks must carry
enough inventory to fill in all stores, but if they are far apart, then single route delivery must opt.
• Supply chain managers must keep the safety stock as sometime things could go beyond
control and all of sudden demand can rise due to any of the environmental factors, like supply
not happened as planned, so it makes a buffer so that business is not affected. If supply is going
on in every day, then there must be a safety stock for one day.
• To reduce the facility operating cost one can lessen the inventory so that it could be adjusted
in small place. The change in a location near to delivery sites and small stock area would reduce
cost by reducing rentals, transportation, etc.