Answer to Question #267531 in Management for zile

Question

Critically discuss the various steps that need to be considered by SGI in order to create a logistics advantage. Your response should make use of relevant examples. (20 marks

Answer 1

Steps that SGI should consider to achieve logistics advantage are:

Establish logistical value proposition: this is the principal strategic move to ensure better performance above the industry average in terms of operational performance, inventory availability, and service reliability. Value propositioning helps the organization to focus on quality-based services. For example, SGI can establish frameworks that ensure a consistent inventory flow and improve operational performance by motivating employees and providing adequate machinery.

Use Integrated Logistical Management: management department for logistics is an essential part of business; using integrated logistics management helps to create effectively functional warehousing, packaging, and material handling; it reduces time to waste and errors, thus increasing performance quality and logistics advantage