Logistics in Supply Chain Management

The evolution of logistics for manufactured products has grown in direct proportion to the rapid advances in technology and the subsequent price erosion of the product as new and better products are entering the supply chain at a faster pace. With such a thin margin and so much competition, mismanagement of the logistics & supply chain management can be devastating.

Those organizations with the infrastructure to capture and compare the composite value of components with real-time quick analysis and disposition based on changes in refurbishment cost, resale value, spare parts, repair and overall demand will not only become more profitable, but such flexibility and scalability will allow them to outmanoeuvre and eliminate the competition.

This is the case of modern Darwinism. It is survival of the fittest. It requires the cooperation of integration in Supply Chain Logistics, or appear in the list of endangered species. Today, technology drives evolution at an incredible speed. The ability to capture, migrate, integrate and facilitate the intelligent analysis of the data is similar to the invention of fire.

This is what will separate the companies who can walk straight from the people who will be stuck in a tar pit of slow response. The early days of logistics were measured with convenience and customer accommodations. The focus was on the front end of the return process, the ability for consumers to be able to return unwanted or damaged merchandise.

The ability to facilitate the return of the consumer is a courtesy that turned into an attractive competitive differentiator in retail. Companies that do not support the return of consumers find themselves at a strategic disadvantage to those who do and finally forced to adopt the same consumer conveniences or lose those customers to the competition.