Techno Company's Logistics Management: Strategies and Analysis

This report analyzes the logistics management tools employed by Techno Company, utilizing SWOT, PESTEL, and RBV analyses to uncover the strategies driving the company's success and its ability to maintain a competitive edge. The analysis reveals well-developed logistics strategies contributing to the company's success in sales and profit, particularly through the elimination of middlemen and rapid response to supply chain issues. Recommendations include adopting new strategies such as partnerships, establishing an emergency supply chain, ensuring accountability and transparency, and prioritizing coordination. The report emphasizes the importance of continuous improvement and adaptation to maintain a competitive advantage in the global market.

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Executive summary
The paper carries out an analysis of the logistics management tools as used in Techno
Company which is the case study of the report. The analysis will involve the use of analysis
tools such as SWOT, PESTEL, and RSV to reveal the logistics management strategies that
have brought about the success of the company. It will also look at how the company can
maintain its competitive advantages. The results of the report show that the company has
well-developed logistics management strategies which enable it to compete favorably in the
global market.
According to the report, the success of the company regarding sales volume and profit-
making is attached to the strategies embraced by the company. Abolishment of middlemen
and quick response to supply chain flaws are some of the sources of its success. Some of the
recommendations in this report are the adoption of new strategies such as partnership, the
establishment of an emergency supply chain, accountability and transparency as well as
coordination and prioritization.

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Contents
Executive summary....................................................................................................................2
Introduction................................................................................................................................2
Analysis of the logistics management strategies that have brought about its success...............3
SWOT analysis........................................................................................................................3
PESTEL analysis....................................................................................................................5
RBV analysis...........................................................................................................................6
How the company can maintain its competitive advantages.....................................................6
Conclusion..................................................................................................................................7
Recommendations......................................................................................................................7
References..................................................................................................................................8

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Introduction
Logistic management is one of the most critical subjects that ought to be given much
attention and exploration by both researchers and business scholars. This fact explains the
reason as to why the subject has drawn much attention to scholars over the recent past.
Logistics management determines whether that particular organization will be in a position to
achieve its long-term goals through business diversification and successful supply of its
commodities (Baker, 2014). The most precise definition of the term logistics management is
that it is the component of the supply chain management that is charged with the mandate of
planning, control, and the implementation of efficient and effective flow of goods, services as
well as other information from the origin point to the point of consumption. This duty is
aimed at increasing utility of the products.
This paper will analyze logistics management of a selected case study company. The analysis
of the logistics management of the company will involve preparation of a report concerning
the logistics management strategies that the company embraces for its success as well as
other strategies that the company does not use whose usage may increase efficiency. This
paper will also look at the possibility of the application of the logistic management strategies
in other companies for success as well as how the company can maintain its competitive
advantages as far as logistics management is concerned. The study will then conclude and
give recommendations based on the findings if the report.
In this report, Techno Company will be used as the case study company. The report will give
a brief review of the company and discuss the logistics management strategies that have
enabled it to have the success it is enjoying today. Techno is a high technology manufacturer
of products which supplies product to original equipment manufacturers. These
manufacturers bundle the products together with other commodities for sale to consumers.
Analysis of the logistics management strategies that have brought about its success
Any organization would succeed or fail in its operations depending on the logistics
management strategies it embraces. It does not matter whether the company is small or
significant. Research has proven that logistics management strategies employed by any
company determine whether it will fail or succeed (Liao, 2014). For the case of Techno
Company, it has embraced poor logistics management strategies that at one point have

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threatened the revenue earning of the company. However, it is appreciable that the company
later realized where it had messed up and corrected accordingly to ensure that it continues to
maneuver and stand competition from its opponents. These strategies that have been
embraced by Techno Company are analyzed below using different tools.
SWOT analysis
Swot analysis is one of the tools for analyzing the logistics management strategies employed
by a particular company. This tool helps in determining the strengths, weaknesses,
opportunities as well as the threats of that specific logistics and supply chain management. In
developing logistic management strategies, managers use this tool to determine the strengths
involved in the business to take advantage of them (Childers, 2017).There are various
strengths of different businesses. Possibly a particular company is the only licensed firm to
operate a certain business or maybe it has a well-known brand and good public image. These
strengths act as competitive advantages for individual companies and help them reach their
goals.
In the case study tackled in this paper, Techno has several logistic management tools that
serve as its strengths. One of these strategies is the abolishment of the middleman.
Intermediaries may negatively affect the business if present in the supply chain (Bing, 2014).
According to the case study, it is evident that a problem encountered by one part of the
supply chain would affect the whole chain. In this case, therefore, taking action of owning the
entire process as Techno Company led to the recovery of the operations that were paralyzing.
Another crucial logistic management strategy that acts as its strength is problem identification
and quick recovery. Some companies take too long time to discover a problem, especially in
the supply chain. Others take too long to respond to the challenge hence maiming the supply
process. Techno, when it realized that there was a problem in the supply chain that resulted in
lower sales volume adjusted and closed the loopholes. This quick action led to successful
recovery of the business operations as well as revenue generation.
However this company has some well laid out logistic management strategies, it still has
some weaknesses. These are weaknesses that ought to be reduced as much as possible or wise
enough is turned into opportunities. For instance, Techno suffered a period of low-income
generation and possibly poor public image as a result of lack of direct contact with its
customers. As mentioned earlier in this report, logistics management involves the movement

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of commodities from the origin point to the consumption point (Mowforth, 2015). Use of
poor supply chains that negatively impacted the business was a significant weakness. Another
major weakness was the production of more commodities than the company could sell. The
company should have determined its market and known how much they are capable of selling
and produce the required amounts.
The company has been faced with several opportunities. The company is in a position to
diversify its market by conducting market research to know the taste of different customers
across the world. The company can sell its products in the global market. It is also in a
position to use its reputed brand and advanced production technologies as competitive
advantages.
However, this company has several threats. One of these threats is long-term closure if it does
not put much emphasis on the role of supply chain in product design. If it does not give
attention to having direct contact with customers as a company, it may at long run end up
making less volume (Crane, 2015). Making fewer sale volumes would imply low revenue and
that would lead to business failure at the end of the day.
PESTEL analysis
PESTEL is another primary analysis tool for logistics management. This tool explores the
political, economic, technological, social and technological factors that may affect the
business and in this case logistics management. The political aspect of this tool looks at the
existing market and trade policies in the national and global market as well as the likelihood
of the change in regulation. Luckily enough, Techno Company has not had regulation
breaches or disputes with the existing global policies. It is operating in a market where its
products are acceptable in any country due to their quality and conforming to the set
standards.
Economic factors also affect logistics management. Research has to be conducted on the
same to know whether the products that the company deals with are affordable by the general
public or a few people of a particular social class (Bloemhof, 2015). Techno Company
encountered a scenario where the sales volume went down as customers opted for
competitor’s products due to high prices of Techno products. However, the company adjusted
the same, and it could now sell more products.

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Sociocultural factors also have an enormous impact on logistics management. They dictate
where and when the product will be sold. Some countries have a culture that is against the
consumption of certain products. However, this company has not had problems or gotten
affected by people’s culture. It deals with electronics which are common and universal
gadgets and thus acceptable by any culture.
Technology also affects the supply chain and logistics management. Techno company had to
change production technology by looking for materials with a higher hardness that would
have fewer vibrations as opposed to the materials they were using (Mowforth, 2015). This
move was in the attempt to improve quality and meet customer specifications as well as the
current global requirements. Therefore, technology impacts project design so much.
RBV analysis
The resource-based view is yet another analysis tool that can be used to analyze logistics and
supply chain management in Techno company. This tool came into being in the 1980s and
1990s, and it is based on the achievement of strategic goals by the use of resources. It holds
that one ought to look for competitive advantages within the business itself rather than
sourcing them in the external competitive environment (Munguia, 2018). This tool helps
business entities and organizations to attain their highest organizational performance and thus
be able to outdo their competitors.
Based on the case study company, it was realized that solving the internal flaws in the
company would enable them to cope with competition from their opponents. The company
resolved to correct supply chain problems that lowered the sales volume, something that
acted as a competitive advantage (Narasalagi, 2015). The company also used the strategy of
improving the quality of its products to fetch a broader market. The company also has the
opportunity to use its renowned brand as a competitive advantage.
How the company can maintain its competitive advantages
The fact remains that stiff competition is one of the significant challenges facing business
organizations around the globe. Due to this fact, it is essential to devise ways of gaining and
maintaining competitive advantages (Oliveira, 2014). Techno Company has tried to acquire

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some competitive advantages. However, it needs to explore more to be able to grow and
successfully outdo its competitors. Below are some of the ways that this company can
maintain its competitive advantages.
1. Collaboration with the customers. This company ought to interact with its customers
by all means and make sure that it’s in close contact with them. This move can be on
social media platforms such as Facebook, Twitter, Instagram, blogs, websites among
others (Ong, 2016). The company needs to take advantage of the free advertising
feature of social media. It also needs to monitor the feedback from its customers to
weigh themselves and know how the public takes them.
2. Offering understanding and insight. The company ought to continually communicate
with its customers through phone calls, emails among others to give them an idea
about the company. It is also obliged to training its stakeholders on the methods that
have been used to attain the competitive advantages (Saenz, 2015). The stakeholders
must be taught how to operate to safeguard the company's already acquired
competitive advantages.
3. Being customer generic. The company should try to put itself in the position of the
customers to know how they feel about the company based on how they are treated.
4. Exploration of new ideas. The company should have an aggressive team that seeks to
always come up with new ways in the effort to beat their competitors. Innovativeness
will help the company remain to be the best and the best there will ever be.
5. Loving its employees. The company ought to know that employees are the heart of
any organization and that they should be loved and given a conducive working
environment (Wood, 2016). Customers will always notice if they are served by
unhappy employees.
Techno Company also needs to improve and acquire new competitive strategies. Some of the
strategies it can embrace are proper choice of the units of carriage of its products, using the
best packaging materials, coordination, and prioritization, the establishment of an emergency
supply chain, transparency and accountability as well as a partnership.

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Conclusion
Logistics management is a very crucial component of the supply chain management. It
determines the failure or success of a business. From the discussions above it has been
evidenced that organizations using proper strategies succeed as opposed to those that use
poor and non-functional strategies. Right logistics management strategies serve as
competitive advantages that help the company withstand stiff competition from their
opponents.
Recommendations
Techno Company has not yet set out enough logistics management strategies. It, therefore,
needs to consider exploring more tools that will enable to be better placed in the global
market. The company ought to improve its logistics management tools so that it can match
the other big brands as well as being in a position to outcompete them.

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