Logistics, Management and Strategy

7872 Words Dec 8th, 2011 32 Pages
THE FUNDAMENTAL OF LOGISTIC MANAGEMENT AND STRATEGY
Xi-Er Dang

Abstract
This paper provides a basic but fundamental understanding of logistic primarily based on the book of “Logistics Management and Strategy” by Harrison and van Hoek. It will guide you through from the basic definition and concepts to the different supply chain strategies that exist, as well as providing a perception on the future logistic development. Explanation of principal terms like logistic, supply chain management and supply network is discussed, and important logistic systems like just-in-time, lean thinking and agile strategies are deliberated. Different ways of working together within the supply chain is debated, where there are different ways of sharing
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(2004). The partners or suppliers which are near the source and thus the production until the focal firm are referred to as upstream (buyer side) (Harrison and van Hoek 2005). In contrary to the partners or first and second tier customers which deliver to the final end-customer are referred to as downstream (customer side). However, all partners are responsible of adding value to the end-customer in each process they conduct, where the process can be explained as transforming inputs to outputs. (ibid.) Another term which is similar to supply chain is supply network, where both terms describe the objective of serving the end-customer through the linkage of different partners. Harland et al.‟s 2001 study (cited in Harrison and van Hoek 2005, p.10) distinct the term network and chain as following: network as a complex structure of cross linkages between organizations, and chain as a simple step-by-step link of few organizations. Harrison and van Hoek (2005) points out that the supply network should be looked at as a system where there must be an understanding of how all process are interacting with each other on a dependent way.

Competing through logistics
Harrios and van Hoek (2005) describe four ways of creating logistic advantage in which they contributes to the competitive advantages of the company. The first way is to compete through quality where the symptoms of quality problems signify

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