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Role of Logistics in Competitive Performance


Rapidly growing global competition and Recession are the two major obstacles faced by the organizations in their chase for leading and enduring competitive edges. However, this is also the truth that offering a quality of service to the client which outstands others is exceptionally attainable if a company supplier section falls short in managing their logistics planning. An organization in order to achieve their goal, should deal with a fresh market concept where logistics should not be recognized just as a support system but instead is considered as an important part of a business which needs to be regulated in the right direction on a strategic ground.

Role of Logistics in Competitive Performance

Potential and Proficient Services is essential

There is no challenge to this statement that logistics is turning up as a substantial unit in business revival processes. In fact, logistics can play a major role in achieving competitive performance, especially in terms of better customer service and cost-effective system. Couriero is one such leading courier aggregator where one can select from varieties of service providers to pick up their parcel with continuous support and all in one app.

Competitive performance is basically obtained by providing your client facilities of better value, at a cheaper cost and operative advantages. Logistics, in parallel, aims to meet clients’ needs at a lower price by ensuring the smooth flow of raw materials, goods, and information in the supply chain method. In order to fulfill this purpose of putting your business above its competitors, logistics ensures that the correct product is delivered at the right time and at the right place with a refined approach. As today’s business is becoming riskier and demanding, to sustain it one needs to be more versatile in terms of the above services.

An organization is required to focus on purchasing, shipment, inventory, flow management, and customer care facilities in its plan of action with the purpose of bettering their productivity to lead the business. Logistic oriented planning leads to track the real-time flow of product and share the same with users in the supply chain.

Logistics to be implemented at strategic platform

A cooperative, extensive and integrated planning method will attain respective competitive performance through valuable service that helps in providing client’s satisfaction and retaining future demands. The strategic planning of logistics functions in the direction of overall organizational goals and objectives, which expects knowledge of how various components and actions of logistics contribute to trade-off and price to the business. Logistics is a sensitive section of the supply chain which requires expertise and better management, which can come from a professional and experienced partner.

Acquisition, transportation and warehousing management required expertise practice to take a lead in the market. The business thus commits on taking a dedicated action in its logistics planning process and upgrading its functions from the traditional model to a more efficient approach in the way to resolve complexity.

Managing Production Costs

Transport is an essential part of a business’s logistics action plan, hence, the worth corresponding with a specific logistics unit has to be precisely administered. Transport estimate ascertains what an individual shipment will cost per unit weight for a specific distance. Hence an Organization should be suitable enough to handle this part skillfully if they seek for competitive growth.

Inventory costs are also important for network evaluation and can be inspected in respect of the handling, storing and maintaining price. The capability of an inventory will be regulated through its resources. Logistic Managers should make sure that accommodation is flawless and prevents baseless excessive utilization of the space associated with a resource. The warehouse is also essential in terms of organization balance structure and influences the financial performance of a business as an inventory turnover ratio is a symbol of proficiency in its management.

Logistics impact on the overall performance of an organization

To analyze the chances for a longer duration of excellent competitive performance, a business must deal with any upcoming management challenges in the logistics before choosing the correct logistics strategies to benefit competitive growth in the market.

Here is a survey data as per economic times 2019, logistics impact in gaining competitive advantage in respect of profit.

Profit Growth

Thirty-five percent of companies after adapting a third-party logistics have grown with a profit of 20% or more since 2018; 18% of business grew with 15% profits; and 20% have influenced 10% growth.

Today’s rigid market competition calls for influential measures in dealing with functionalities of various business subunits as an outcome, many companies are targeting over minimizing the overall cost by maximizing the capacity without compromising the quality of the service. The consequence of gradually decreasing costs is that a business starts getting involved in the ambiguity of becoming a product supplier instead of an improved value provider. To be a better quality supplier focuses on providing a degree of service which outstands others and attracts more clients, this can be successfully attained under an effective logistics strategy.

An expert logistics partner understands the vital role of logistics at the core of any business competitive performance by reducing expenses and by making value for the end-user of providing variable impactful services. It aids with proper facilities and staff required in order to improve the supply chain of any organization.


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