Assignment On Role Of Logistics Managers On Corporate Strategy
Added on - 30 Sep 2019
Connecting Strategy to Financial PerformanceLogistics managers must find ways to:1.communicate how logistics capabilities provide value2.support corporate strategy and success in financial terms.oLogistics resides at the functional level of the organization.1.Functional units must translate corporate and business unitstrategies into discrete action plans.2.Corporate Level-Corporate-level strategy is focused on determining thegoals for the company, the types of businesses in which the companyshould compete, and the way the company will be managed.3.Business Level-Strategy at a business unit level is primarily focused onthe products and services provided to customers and on finding ways todevelop and maintain a sustainable competitive advantage with thesecustomers.4.Functional Level-The functional-level strategies are related to businessactivities that support the achievement of the higher-level goals set by thebusiness unit and corporation.
5.Three generic strategies that can be pursued by anorganizationCost leadership strategy- A cost leadership strategy requires anorganization to pursue activities that will enable it to become a low-cost producer in an industry for a given level of quality.Differentiation strategy-A differentiation strategy entails anorganization developing a product and/or service that offers uniqueattributes that are valued by customers and that the customersperceive to be distinct from competitor offerings.Focus strategy-A focus strategy concentrates an organization’seffort on a narrowly defined market to achieve either a costleadership or differentiation strategy.6.Functional level strategies exist in:1.Marketing2.Finance3.Manufacturing4.LogisticsLogistic strategy decisions involve:1.Determining the number and location of warehouses2.Selecting appropriate transportation modes3.Deploying inventory4.Investments in technology that support logistics activitiesLogistics strategy is directly influenced by strategicdecisions in functional areas of:Marketing1.
Product availability, desired customer service levels,and packaging design directly influence logisticsdecisionsoManufacturingStrategic decisions by manufacturing to implementjust-in-time system would influence logisticsdecisions in warehousing, transportation andinventory managementLogistics function can positively affect the financial outcome of anorganization by designing a strategy to optimally support therequirement of the business.Basic Financial TerminologyoIncome statement shows for a period of time:Revenues-(sales) provide a dollar value of all the products and/orservices an organization provides to its customers during a givenperiod of time.Expenses -(costs) provide a dollar value for the costs incurred ingenerating services during a given period of timeProfitoAlso referred to as a profit and loss (P&L) statementExample of an Income Statement