CoukieLogistics and IT technology Strategies III
May 29th 2006 04:26
Core issues 4 and 5:
Procurement
Procurement strategies are highly related to the order fulfilment strategies, both requires strong relationships with the suppliers. Procurement strategies are focused basically in the development of best practices in the procurement activities like supplier assessment, ordering, quoting and expediting. An advantage of an optimal procurement activity is the reduction of the order cycle. From this point of view customer satisfaction is impacted since the gap between the company’s lead time an the customer’s order cycle.
Product development and commercialization
Historically, the logistics function has not been involved in strategies of product development and commercialization, that trend is getting to and end. Nowadays the benefits on time and cost reductions that the logistic function represent can’t be overlooked. Logistics play an important role as a first hand information source about customer needs and behaviour, on the other hand strong relationships established with suppliers make them more sensitive to the necessities of the company helping to reduce the development cycle time.
Image source: Cerulean
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Comment by Anonymous
Is there some specific cases that you can share?