TABLE OF CONTENTS After reading this chapter you should be able to:
recognize the importance of logistics and fulfilment in supply chain strategies;
evaluate the appropriateness of outsourcing in a given context, e.g. use of 'third-party logistics';
know the competitive advantage that computerized systems and transportation developments can give to organizations, e.g. backhauling, cross-docking;
recognize the strategic importance of storage and distribution in fulfilling the marketing promise to the customer.
From a strategic point of view a number of key decisions need to be taken by organizations when it comes to investment in logistics and fulfilment facilities. There are decisions relating to who should do it (the company or a third party), where to locate facilities in relation to markets and operations, and how to plan for increasing or reducing capacities. Issues relating to stores centralization and decentralization, types of building, layout, storage methods and handling equipment are also important considerations. This is a very important part of the organization's strategic decision-making and an area that can make the difference between satisfied customers or disgruntled customers, affect profit and loss, responsiveness, flexibility, quality of service and capabilities to meet market demand effectively.
Logistics and fulfilment are essential operational activities performed by all organizations delivering customer service. Benefits have occurred through the application of better communication systems including: use of bar codes and RFID tracking together with text messaging and hand held terminals (HHTs). Technology has also significantly improved transport communications through global positioning systems (GPS) providing tracking information. Initially voice...
