To overcome logistics challenges in 2023, you need to create a competitive advantage to satisfy customers needs?. To create a competitive advantage, you need to understand the logistic strategic management. Most logistics companies focus on making profit without finding out what is the resource view and process view to satisfy their customers. As a global trade logistics industry, we’re all familiar with a lot of logistics challenges faced in the past few years.
In a Forbes article, 45% of economists believed that the supply chain situation would start to get better only until the second half of 2024. Focusing on the value chain of inbound to outbound logistics in align with what customer wants and need will help improve the desired outcome. With the come of globalization, investing in innovation in term of digital technology, establishing standards for suppliers and partners, and improving accuracy of errors in delivery service and warehouse management. These will help leverage control on the logistics trade challenges.
The logistics strategy management goal is to achieve the desired outcome of business success. In this blog, we will focus on how to create a competitive advantage to satisfy customers needs. To better understand the concept, let’s take a look at strategic management in global trade logistics industry.
What is Strategic Management in Logistics?
“Strategic is the art of creating value”
To overcome logistics challenges in 2013, you need to understand what is strategic management. However, Strategic Management is therefore managing the value that you create for your customers. In the logistics industry, we can look at it as a systematic approach to managing the whole activity-based view of a firm, allowing an assessment of how a corporation creates value. In contracts, Logistic Strategic management is all about leveraging the logistics value chain’s entire flow of materials, information, services, and finance from raw material suppliers through manufacturing and warehousing, to the end user (customers).
To achieve a competitive logistics strategy’s desired outcome, three possible success factors are shown below.
The Process View to Overcome Logistics Challenges: Understanding Competitive Strategy as a Sequence of Steps that may Overlap.
The proview view to overcome logistics challenges in 2023 determines the success of your strategy. Every logistics business is unique based on its core values, and desired actions of implementation. We will look at the processes to enable us to understand the overview concept.
Competitive and Industry Analysis
A competitive and industry analysis of our business which ranges from Where do we stand? What is our business? How do we create value? Who are we in business with? How is our business changing? What drives this change?
Answering these questions gives us ideas and aspects of our internal and external building blocks ( DO – SWOT ANALYSIS)
This is the value creation direction where we want to go. We need to look into our goals, these goals should be compatible with our strengths and weaknesses and in line with our underlying norms and values. How is your business going to compete with others with similar values? How will you create value in the face of competition?
Implementation and Control
Here, basically is about how to get our values and goals practiced. Ask yourself, Which steps and activities need to be carried out to achieve these goals, and also, Do we have the resources and capabilities necessary? If not, how are we going to build and sustain these?
Sustaining a competive advantage helps to overcome logistics challenges in 2023. How do I mean? Competitive advantage has been a buzzword that means different things to customers, companies, and competitors. Here, we will be focusing on value creation to satisfy customers’ needs. The value creation processes of logistic industries differ, reflecting the respective history, culture, strategy, and implementation success. This applies to competitors in particular. The difference in the way how competitors create value, and how they shape their value-creation processes, is the key source of competitive advantage.
Usually, for attaining a competitive advantage a firm will have to make a choice about the type of competitive advantage it seek to attain, and the scope (“strategic target”) within which it will attain it. Most times logistics industry can possess two basic types of competitive advantage: Low Cost and Differentiation. Most firms ask whether it possible to have both cost advantage and differentiation. The answer is yes if you choose the right competitive scope. If you want to expand our business opportunities by saving cost and differentiating your service to gain competitive advantage.
Use Container Xchange Platform to achieve both if you are looking at automating your container trading processes from pick-up to drop-off across the world to satisfy our customers.
Success Factors and Principles underlying a Firm’s ability to create Competitive Advantage.
To overcome logistics challenges in 2023, there are factors, principles that plays a major role in creating competitive advantage to solve customer pains.
- Competitive Advantage is relative:
.This can mean firms playing against the market and against other players in this market.
- Limited Resources lead to Specialization:
. Follow the course prescribed by your advantage relative to the market.
. Better be mediocre among poor performers than one among many good ones.
- Ability to Defend Against Imitation is critical:
. Successful strategies are targets for imitation, and imitation equalizes returns.
. Institutional and economic factors influence ease of imitation.
- How defensible are the following common-cited sources of advantage:
. Market share, economies of scale and learning curves, corporate culture, marketing and research expertise, asset ownership ?
- Is the ability to create value a competitive advantage?
. Do you know you can leverage technology to optimize your container operations in other to create competitive advantage in this container shortage – Where are all the containers – Make buying, selling, leasing easy – automate manuel paperwork.
In Neu Marke Container, the strategic goal is to help our customers find a place in the logistics industry where they can best defend itself against competitors forces, and influence them in its favor. Also, Learning how to create competitive advantage using a container online trading platform to simplify your end-to-end container transactions from buying, selling and leasing to solve customer pains that leads to satisfaction. Book a demo by talking with our expect who will advice and guide you accordingly base on your strategic situation.