HOW TO USE LOGISTICS AND DISTRIBUTION TO GAIN A COMPETITIVE EDGE

We live in a rapidly changing world.
This really was brought home to me recently when I was having a discussion with my father who was recounting his memories of running a business in England just after the Second World War, and having products delivered to his retail store by horse and cart. 

In just one generation he has seen a complete revolution in logistics and distribution systems. Today we accept overnight delivery services as a fact of life and we can trace our produc.ts at each stage of the transportation process.

The language of logistics and distribution is full of anachronisms. We talk about shipments, receiving docks, free on board and transportation as though everything is sent by boat. 

The reality today is that there are many ways that products can be delivered to customers. According to APlCS, Logistics is defined as the art and science of obtaining, producing and distributing material and product in the proper place and in proper quantities. 

According to David Ross in his textbook on Distribution Planning and Control, logistics consists of seven it's. Having the right product in the right quantity and the right condition at the right place, at the right time for the right customer at the right price. The problem is that it is very difficult to get everything right all the time. The problem is caused fundamentally by the uncertainty that exists regarding the purchasing pattems of customers. This uncertainty creates the necessity for organizations to forecast the potential demand for their products in advance of receiving actual customer orders. 

The errors associated with these kind of predictions create the situation where the seven R's are not met. There are four main factors which determine the level of customer satisfaction, product quality, product delivery, product service and product price. These factors will influence a customer's future purchases. 

Customers today are more demanding than ever. They demand value and they define value as perceived total quality of the product and service for the price. Companies today are competing on the basis of order qualifiers and order winners. Order qualifiers are the factors that determine whether you could even be considered as a potential supplier for a product or service. Order winners are those factors that will cause a customer to select your company as a preferred supplier of a product or service.