Outbound Logistics Strategy

Subject: Logistics
Pages: 2
Words: 297
Reading time:
< 1 min

In the modern business world, outbound logistics are recognized as an integral part of the process of delivering value to the customers of a given organization or company. In outbound logistics, firms select the best strategy that balances the costs and customer satisfaction. The company tries to strike a deal between using the minimum resources for production and, on the other hand, making sure that the consumer of the product derives maximum satisfaction from the product.

Formulation of such strategies is the function that the management of such organizations should hold dear for the success of the organization. It should not be instant but rather a process. To start with, a firm must first develop a plan of action to have a competitive advantage in the market. The firm must put into consideration the needs of the customers, the market as well competencies that clearly outline how the customers will be satisfied.

The firm also needs to make key decisions on how the market will be segmented, issues to do with price and product differentiation, and investment decisions. This should be aimed at increasing the customer value as well as reducing the costs involved.

Consider a company such as Toyota Motors Corporation. Despite the company being the leading manufacturer of automobiles, it faces stiff completion from other companies such as General Motors, and the Volkswagen Group, among others. To implement logistics strategies, the company must follow the above-outlined steps. The company has indeed managed to deal with the stiff completion through such strategies. The company has managed to expand and define its market through franchising. It has also ensured customer satisfaction by coming up with different models of cars that are cost-efficient and customer-friendly in terms of price.