Why is corporate strategy important to logistics?
For any company that is in the business of providing a variety of products and services to costumers, it is of crucial importance to the health of that business to implement a logistics strategy that will help keep service levels at their highest at all times, no matter what changes might be happening in other areas of the business organization. This is an even bigger imperative for companies that are more complex in structure, or that may have a very fluid or fluctuating supply chain,
or that have specific product lines, specific countries or specific customers to cater to. Show
Meet Our Panel of Logistics Strategy Experts:
Shawn CasemoreShawn Casemore is the Founder and President of Casemore and Co, Inc. Shawn has spent nearly two decades leading, managing and motivating teams across a vast array of industries and sectors. He has worked with dozens of dynamic and diverse organizations including Magna International, Arvin Meritor and Bruce Power LP. Shawn is recognized as a thought leader in the area of operational excellence and his views are frequently published in industry publications including the Globe and Mail, CFO Magazine, Enterprise Apps today, purchasing B2B and many others. Shawn has also been a visiting faculty member at the Humber College Institute of Technology and Advanced Learning for the past two years. My top logistics strategy tip is…Leverage your predicted volumes to reduce price. Keith BiondoAs the publisher of Inbound Logistics Magazine – a multi-media publication serving the informational needs of business logistics and supply chain managers globally since 1981 – Keith Biondo is considered a supply chain visionary. Early in his career, Biondo recognized the importance of helping U.S. manufacturers better match demand to supply, and his passion for that idea fuels many of Inbound Logistics’ accomplishments. Under Biondo’s leadership, Inbound Logistics helped grow the third-party logistics segment and taught shippers the importance of evaluating their 3PL providers. He also championed the concept of applying logistics technology to all aspects of supply chain management, from the largest ERP systems to the smallest SaaS solutions. Biondo currently serves as a board advisor to the American Society of Transportation and Logistics. Biondo holds a BA degree in History and English from St. John’s University, New York.When it comes to an effective logistics strategy…My one tip is to start practicing demand-driven logistics if you have not already done so. Steve MurraySteve Murray holds the unique role of both a Principal Consultant and as Chief Researcher for Supply Chain Visions. As the head of research at Supply Chain Visions, Steve is constantly monitoring the pulse of the supply chain industry for leading edge trends and best practices that Supply Chain Visions can bring to their clients.Steve maintains the SC Visions “Catalog of Processes and Best Practices” – which is the foundation for both the Council of Supply Chain Management’s Supply Chain Management Process Standards guides and the Warehousing Education and Research Council’s Best Practice Guides, and he manages the SC Visions / CSCMP Glossary of Supply Chain Management and Logistics terms. Steve is also a member of the team which performs the annual WERC / DC Velocity Study of DC Metrics, and is a frequent speaker on the subjects of process improvement and the use of metrics. The most important tip I can share with business professionals looking to create an effective logistics strategy…Comes from many years working as a consultant to companies in the warehousing and
supply chain areas. It is a rather simple, and extremely effective approach that is way too frequently overlooked, misunderstood, or simply not well executed. Rick BlasgenRick D. Blasgen currently serves as the president and chief executive officer of the Council of Supply Chain Management Professionals (CSCMP) in Lombard, Illinois, USA. He began his career with Nabisco, where he held various logistics positions of increasing responsibility in inventory management, order processing, and transportation and distribution center operations management. He became vice president, supply chain, at Nabisco in 1998, then vice president supply chain for Kraft in 2002. From 2003 until 2005, he served as senior vice president integrated logistics at ConAgra Foods. He earned his degree in business administration from Governors State University.When it comes to logistic planning for any business…My top tip is to acquire an experienced logistician who has great interpersonal skills, is well connected to the logistics/supply chain world (a CSCMP member of course!), is a proven leader, and has solid financial acumen. Richard WildingRichard Wilding is the Professor of Supply Chain Strategy at Cranfield School of Management. As Chair (Full Professor) in Supply Chain Strategy at the Centre for Logistics and Supply Chain Management, Cranfield School of Management UK, Richard works with European and International companies on Logistics and Supply Chain projects in all sectors including pharmaceutical, retail, automotive, high technology, food, drink and professional services to name a few. He is a highly acclaimed presenter and regularly speaks at Industrial Conferences and has undertaken lecture tours of Europe and Asia at the invitation of local Universities & Confederations of Industry. He has published widely in the area of Supply Chain Management and is Editorial Advisor to a number of top journals in this area.When it comes to creating an effective logistics management strategy…The answer to your question is contained in my 60 seconds on Supply Chain Strategy video on YouTube. Kenneth B. AckermanKen Ackerman has been active in logistics and warehousing management for his entire career. Before entering the consulting field, he was chief executive of Distribution Centers, Inc., a public warehousing company which is now part of Exel Logistics USA. In 1980, Ackerman sold the company and joined the management consulting division of Coopers & Lybrand. In 1981, he formed the Ackerman Company, a management advisory service.Ken is editor and publisher of Warehousing Forum, a monthly subscription newsletter and blog. His newest books are Lean Warehousing and Fundamentals of Supply Chain Management, both published in 2007. His other recent publications include Auditing Warehouse Performance and Warehousing Tips. Harvard Business Review published “Making Warehousing More Efficient,” co-authored with Professor Bernard J. LaLonde. The New York Times published his bylined article “Just In Time, Right For Retail.” He is the author of numerous other articles dealing with warehousing and management. He has the following educational and professional credentials:
The most important idea about a business’ logistics plan is…that it should always be subordinate to corporate strategy. For example:
Steve NovakSteve Novak is the President of PPR Management Services, LLC, where he works with organizations to define and achieve their goals. He has over 20 years of process improvement and business operations experience, and is the author of “The Small Manufacturer’s Toolkit”.My top tip for creating an effective logistics strategy is…First define what you are trying to accomplish, what goals you are trying to achieve. Your logistics / supply chain strategy supports the goals of the business, so your supply chain strategy must align with and help achieve the organization’s goals. The second step is to articulate how the supply chain
strategy works to achieve the higher level goals. Timothy D. GarciaTim Garcia is the founder and CEO of Apptricity, a leading logistics and supply chain management software solutions provider. Tim brings more than 25 years of software sales, management and development experience in the enterprise applications market to Apptricity, and under his leadership, Apptricity’s growing client base now includes three of the world’s largest organizations, namely Walmart Stores, AT&T and the Department of Defense. Prior to Apptricity, Garcia held management positions at Pivotal Corporation (Nasdaq: PVTL), Compuware Corporation (Nasdaq: CPWR), Peregrine Systems (NYSE: HPQ), Sterling Software (NYSE: CA), and EDS (NYSE: HPQ). He received his BA degree in Economics from the University of California at Davis.When it comes to any company’s logistics management strategy…There is a critical need in today’s hyper-fast, online environment to meet the expectations of clients. Finding a faster, more efficient means of handling products is important for supporting a successful organization, and a well-run supply chain is vital to the success of a business. Starting with a great solution or
upgrading the supply chain management system is essential in order to compete and can provide a substantial boost to productivity. The potential for supply chain disruption comes from unexpected weather, natural disasters, political upheaval, economic crises and other “black swan” or unique events that can ruin a start up and cripple an existing business. Clay GentryClay Gentry is VP of Logistics Operations, responsible for developing innovative TMS technology and improving processes for clients of Transportation Insight, a leading North American 3PL. He has more than a decade of experience in non-asset based logistics management. His engagement with clients has included transportation planning and process management, engineering, continuous improvement and Transportation Management System (TMS) process design and integration.The best idea I can share with business professionals for better understanding how logistics strategies work is…Logistics strategy is the science of evaluating the most cost effective methodology of distributing goods to market while achieving service level objectives. When establishing an effective logistics strategy, you need to understand to what degree logistics impacts your operations and your customers’ operations. How crucial is timely delivery to your inbound and outbound deliveries, and what constraints exist, such as budget, resources and existing network of providers. If you choose to outsource your logistics operations, make sure you use an organization that will work with you hand-in-hand to co-manage your logistics, so that you keep all your front-line carrier relationships and control. Work with an organization that doesn’t see you as a “project” but as a “partner” who will share with you their best practices and understanding of emerging trends. This partnership-type relationship ensures success within your logistics operations. Samuel LevinSamuel Levin is the Cofounder and Managing Director of MavenWire LCC. Prior to co-founding MavenWire LLC, Samuel served in a variety of roles at G-Log Inc., (Global Logistics Technologies, acquired by Oracle Corporation in 2005), including Technical Consultant, Senior Functional Consultant, and Project Manager. While implementing G-Log’s award winning GC3 Supply Chain Management solution, Samuel has had the opportunity to work in virtually every logistics vertical including CPG, Automotive, 3PL/4PL, Manufacturing, and International Freight Forwarding.One of my most important tips for maximizing the effectiveness of your business logistics strategy is…Focus on your competencies. Many companies think they need to “do it all” when it comes to logistics, but in reality there are many options available to organizations that are looking to develop effective and efficient logistics processes. Depending on the complexity of your reader’s shipping needs, for example, in some cases it may be easier to outsource logistics domestically to a 3PL or a global freight forwarder. And, even start ups that lack established IT
departments can create effective logistics strategies by using an affordable SaaS-based transportation management solution (TMS). These platforms allow organizations to plan, execute and track freight without the concerns of managing software applications and computer hardware. Raad MobremRaad Mobrem is the CEO and co-cofounder of Lettuce, which he originally created as an internal solution for his first wholesale small business. Getting tremendous demand from other wholesale businesses after seeing Raad’s company use the product, Lettuce was launched in early 2012 with the help of CTO Frank Jones. Raad is the visionary behind Lettuce’s product and company, which is focused on creating consumer-like business applications that make it simpler for businesses to run their company.The best way to increase the effectiveness of your logistics plan is through…Utilizing the technology available to you. My own
company, Lettuce, has innovated a way for small business owners to cut costs by consolidating the entire sales, processing, accounting, inventory, forecasting, fulfillment and shipping process into the click of just one button – let that sink in a bit. It’s taken a task that spans across multiple departments and translated it into a single click. Dr.McKayDr. McKay is the CEO for MJMcKay Consulting Corporation. He was one of the first academics asked by the Boeing Company in the early 1990’s to create a Lean manufacturing curriculum for the company’s middle management. The training that he created has since been used to teach Lean to thousands of participants. He has also enjoyed his time discovering growth opportunities for giant corporations such as Microsoft Corporation, Starbucks, and Pfizer. He has worked with government organizations, NGO’s, service organizations, and manufacturers. He has substantial experience successfully working with the particularly unique challenges of the family-owned business.When it comes to creating an effective, yet realistic, logistics strategy…Plan to give the decision away. Mark BroussardMark Broussard is the President & Chief Operating Officer for SAMI, responsible for global consulting operations, knowledge operations, administration and marketing. Mark entered management consulting over ten years ago and has created substantial value for clients in upstream oil and gas, mining, metals, power generation, pharmaceuticals, and entertainment industry verticals. Mark is a member of the American Management Association, Society of Maintenance & Reliability Professionals and is a Certified Maintenance & Reliability Professional.The #1 way to increase the effectiveness of your logistics strategy is to…Have absolute clarity on the purpose of the logistics function in the organization. Investing in developing and clearly articulating the vision of logistics in support of the overall operation are foundational steps in defining optimum logistics strategies. Ben CubittBen Cubitt currently serves as the Senior Vice President, Consulting & Engineering of Transplace, and has more than 20 years of industry and consulting experience in freight optimization. At Transplace he leads the engineering, carrier management and consulting teams. He has a deep familiarity with the freight procurement field working for consulting firms and multiple Fortune 500 companies in the consumer products, paper and automotive industries. Mr. Cubitt has led and assisted with bid projects for companies such as MeadWestvaco, Kellogg’s, RockTenn, The Home Depot, Colgate-Palmolive, RockTenn and McCormick Foods.When it comes to logistics planning and strategies…Within the supply chain, there is the constant challenge to optimize service and cost performance. There are more tools and challenges than ever before; but at the end of the day, for supply chain professionals, it’s all about delivering low cost and great service. To accomplish this, companies need to gain end-to-end visibility of their network and analyze service and cost performance. It starts with building a solid transaction and information
foundation. Often this means partnering with a third party logistics provider (3PL) who has the people, processes and technology needed to execute, gain visibility, track and report cost and service performance. Danny YunesDanny Yunes is the Manager of Supply Chain Strategy at Coyote Logistics. Coyote Logistics is a new third party transportation & logistics company built on a wealth of experience. Started in 2006 by a 22-year veteran of the industry, Coyote brings together the brightest, best trained employees and arms them with brand new technology that combines vast operational experience with the latest advances in optimization and applied probability sciences.The most important tip I can share with logistics professionals…Would be to always remember your core
competency. Focus on it. Ingrain it into your culture. Then, align your logistics strategy around that competency, and segment out your products, customers, and vendors. Richard J. ShermanRich is an author, speaker, and consultant on Supply Chain, Business, Leadership, and Information. He is an internationally recognized pundit and author on trends and issues across supply chain management. He currently serves as a Principal Essentialist at Trissential co-leading their supply chain consulting practice. His book “Supply Chain Transformation: Practical Roadmap for Best Practice Results” (Wiley, 2012) has received praise by practitioners, academics, and non-supply chain executives as a great read on business transformation. Throughout his career, Mr. Sherman has held senior management positions with visionary technology firms such as EXE, Syncra, and Numetrix, and marketing leading corporations such as Microsoft, Information Resources (IRI), Mercer Management Consulting, Digital Equipment Corporation (DEC), and Unisys.One of my most important tips for maximizing the effectiveness of your logistics strategy is…Begin and end with customers and how they use your offerings! Logistics is about optimizing costs while providing outstanding service. And, not all customers are created equal! A segmented logistics strategy that considers the requirements of your most valuable customers first and designed accordingly wins! Business is about growing exceptional current results while building a strong base for the long term. Logistics is the capability that can orchestrate all of that to happen, by starting with an intimate understanding of product and service needs of every customer segment and linking them to the steps that provide breakthrough satisfaction to customers. Logistics is the external link between suppliers, production, customer interface, and results. It is the internal link between product development, marketing, sales, procurement, production, finance, and executive leadership. An effective logistics strategy will contribute to the financial health of the company and fuel its growth. When it starts with customer segment needs and expectations and understands the value you create for the customer, only then can it produce exhilarating customer response through delivery of knockout value. Naseem MalikNaseem Malik is Managing Partner of MRA Global Sourcing, an affiliate of MRINetwork, one of the largest executive recruitment organizations in the world. Naseem brings over 15 years of experience in the supply management and logistics function to the search and recruitment business. Spanning diverse industries, he has worked in numerous roles of increasing responsibility, including implementation of global supply strategies, product and process cost reductions, logistics and transportation management and supply chain improvements. He was also Director of Global Sourcing at both Terex Corporation and ACCO Brands, and his background includes working in management consulting for AT Kearney, as well as multiple start-up businesses.The truth about logistics strategy is that…An effective logistics strategy at its core, is nothing more than the process of moving and positioning inventory to meet customer requirements at the lowest possible total cost to serve. For a business leader, it’s their responsibility to design and
administer a system to control the flow and positioning of materials to support the business strategy. Every firm should adopt a strategic initiative to align suppliers and distributors into collaborative relationships to gain a competitive advantage. When this synchronization takes place, it’s called an integrated logistics model. There are a few key factors that comprise a successful integrated logistics model and they are: asset minimization, lowest total cost, and supply chain
connectivity. Douglas HoldsworthDoug is currently the Manager of Operations at Quality Freight Logistics, Inc, a transportation company based in Michigan. Prior to helping found and mange Quality Freight Logistics, Doug helped launch and grow logistics firm, R2 Logistics, over the course of six years. He has more than 12 years of management and customer service experience in the Logistics industry.When it comes to logistics strategy success, the most important tip I can share is…Employ an experienced transportation procurement specialist to vet and manage your vendors “in house”. Within these vendors, you want to work with a combination of asset based companies and at least 2 third-party logistics companies (3pl’s). 3pl companies have access to all modes of transportation throughout the entire market, and will be able to adapt to changes in the market throughout the year. Also, working with more than one of these companies will keep them in competition with one another and will usually net you the lowest price for their services. Nick MartynNick is the CEO and Founder of RiskLogik. Before founding RiskLogik in 2010, CEO Nick Martyn held various command and staff appointments in both the Canadian and British Armies over 27 years of military service in Canada, UK, Germany, Former Republic of Yugoslavia and Afghanistan. From 2008 to 2011, he served as CEO of the Afghanistan Information Management Services (AIMS) where he oversaw the transition of AIMS from the United Nations to independent NGO status and transformed the organization taking them from a negative cash position to a peak of USD $9M revenue in 24 months. During that period AIMS delivered a world class international aid effectiveness management system (ANDMIS) to the Government of the Islamic Republic of Afghanistan while also modernizing the Land Management System and Mapping the Electrical Service in Kabul.If I had one fundamental piece of logistics management advice for a company, it would be to…Conduct a complete risk and resilience assessment prior to establishing a new supply chain. Unfortunately, resilience does not come in a box, and cannot be purchased just when you need it. While
designing and building a resilient supply chain from the very beginning is much more cost-effective than trying to change the supply chain in mid-stream, many organizations must redesign them as they live with the results of one or more disasters or shocks. Patrick Burnson@SCMR Rayford Collins@UPS Lora Cecere@lcecere
Eric Meister@myblujay Asset Tracking Solutions from Camcode:
What is the relationship between logistics and corporate strategy?Logistics strategy and corporate strategy are on a two-way connection. Corporate strategyfocuses on the management and growth of a company which is what logistics strategieshelp put into place. Logistics strategies help differentiate a business and cater to a broadrange of customers.
Why are strategies important in supply chain and logistics?But having a supply chain strategy helps companies know how to work with their products' distributors and vendors to improve operational efficiencies and drive down costs—and that can help enable profitable growth.
Does the logistics strategy support the corporate strategy?Organisations now realise that logistics strategy is integral to corporate strategy especially when we consider the ever-pressing need for sustainability to be built into business activities. The effect of carbon emissions on climate change means that logistics can be key in lowering a company's environmental impact.
What is corporate strategy in supply chain management?A supply chain strategy determines the nature of procurement of raw materials, transportation of materials to and from the company, manufacture of the product or operation to provide the service, and distribution of the product to the customer, along with any follow‐up service.
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