Ch. 3 Strategic and Financial Logistics Flashcards
Describe Business Strategy
The strategy that identifies a firm’s targeted
customers and sets time frames and
performance objectives for the business.
Describe Core Competency
An organizational strength or ability,
developed over a long period, that customers
find valuable and competitors find difficult or
even impossible to copy
Describe Functional Strategy
A strategy that translates a business strategy
into specific actions for functional areas such
as marketing, finance and supply chain.
Describe Logistics Strategy
A functional strategy that indicates how logistical
structural and infrastructural elements, with the overall
supply chain area, will be acquired and developed to
support the overall business strategy.
What are the three primary objectives of Logistics Strategy?
Help management choose the right mix of structural
and infrastructural elements based on a clear
understanding of the performance dimensions valued
by customers and the trade-offs involved.
Ensure that the firm’s structural and infrastructural
choices are strategically aligned with the firm’s
business strategy.
Support the development of core competencies in the
firm’s supply chains.
List the Structural Decision Categories
Capacity
Amount, Type, Timing of capacity changes
Facilities
Services/Manufacturing, Warehouses, Distribution hubs
Size, location, degree of specialization
Technology
Services/Manufacturing processes, Material
handling equipment, Transportation
equipment, Information systems
List The Infrastructural Decision Categories
Organization
* Logistics structure
Sourcing/Purchasing
* Sourcing strategies
* Supplier selection
Planning and Control
* Forecasting
* Inventory management.
Describe cost leadership strategy
Requires an organization to pursue activities that
will enable it to become the low-cost producer in an
industry for a given level of quality
Describe Differentiation Strategy
Entails an organization developing a product and/or
service that offers unique attributes that are valued
by customers and that the customers perceive to be
distinct from competitor offerings
Describe Focus Strategy
Concentrates an organization’s effort on a narrowly
defined market to achieve either a cost leadership or
differentiation advantage
What do logistic strategy decisions involve?
Determining the number and location of warehouses
Selecting appropriate transportation modes
Deploying inventory
Investments in technology that support logistics
activities
