Creative Logistics Strategy - Essay Example

As an electronic manufacturing corporation, logistics become a critical part of business strategy. Effective supply chain helps in coordinating the organization’s various linkages with external agencies vis-a-vis raw material providers, supplying finished goods to customers, ensuring safe transportation of goods to various stores, etc. Efficient delivery of goods and services greatly facilitates competitive advantage in the contemporary environment of cutthroat business. The market of electronics goods is highly sensitive to pricing and change, logistic strategy is, therefore, a highly critical part of the business strategy.

The effectiveness of logistics is improved through alliances with local suppliers that reduce the cost of transportation. Porter (1985) asserts that logistics is a key component of the value chain that greatly facilitates business activities. In the company, technology is an intrinsic part of a strategy that facilitates inbound and outbound logistics for an effective supply chain for raw materials and a network of distributors for finished goods. The parts are sent to offshore business partners where assembling is done and local transports are used to send the goods to dealers and stores.

Thus, outsourcing partnership across the region significantly reduces transportation costs and helps gain a competitive advantage in the current recessive environment. This saves time and effort as the assembling of products could be easily altered to suit the demands of the local customers across geographical boundaries. The products, therefore, reach the customers timely and efficiently. Hence through creative logistic strategy, the company is not only able to survive but is also able to maintain its market position.

The use of technology facilitates improved communication and enhances efficiency in the delivery of goods and services. Most importantly, good logistics has helped to expand business across the globe and provided the company with a sustainable source of continuous income.