Logistics: Tool & Competitive Strategy

Logistics: Tool & Competitive Strategy André Luis Garcia Barreto *

Nowadays logistics is seen by many experts as a management tool capable of promoting not only the reduction of operating costs, but also as a competitive strategy to reach new markets and new customers. To begin this article about how the Logistics Strategy and influence, in a competitive, private market in the era of globalization, we will first offer some concepts and theories spread. A widespread concept by the experts is that logistics should be considered as the strategic management of material flow and information related to lead in an efficient and effective products from a source to a destination. The logistics business as we see today is "patron" of military logistics, which must provide adequate support for the troops can operate effectively on the battlefield. This factor is so prevalent in cases of war who recently saw the U.S. to dedicate themselves winners in the Gulf War showing all their efficiency and effectiveness in meeting the concepts of military logistics, leaving nothing lacking in the necessary hours. Given this concept, logistics business will be essential to meet the competitors in the market and compete on equal footing with the best competitors. Globalization, changing consumer behavior, reducing the life cycle of products and the weakening of the brands require organizations to acquire and develop new skills to acquire and keep customers. Expand the dimensions of competitiveness, which is no longer regional to be global. The competition is happening between supply chains and no longer between individual companies. In this context, the advantages and competitive edge are increasingly ephemeral. Speed and flexibility are not merely a discourse and become mandatory. From

the

90

years

to

stabilize

the

economy,

the

increasing

internationalization of markets between the economic blocs and better coverage of global business has made the old model of business management, focused on productivity, this place for a new model based in competitiveness.

Competitiveness is treated in several books and can highlight some thinkers on the subject: “a firm is competitive when it is able to offer products and services of higher quality, lower costs and make consumers more satisfied than when served by rivals” (Barbosa, 1999) “Organization's ability to manufacture better products than its competitors, according to the limits imposed by their technological capabilities, managerial, financial and commercial.” (Machado-da-Silva and Fonseca, 1999) Also

in

the

context

of

globalization,

logistics

and

business

competitiveness can not stop talking about the strategy that the manager will now have to maximize all that knowledge and tools. Therefore, it is important to present some theories about competitive strategy and its importance to the new management model competitive. “The strategy is the set of plans, policies, programs and actions developed by a company or business unit to expand or maintain, in a sustainable, competitive advantages against competitors.” (Alves Filho, 99) “Without competitors there would be no need for strategy, for the sole purpose of strategic planning is to become able to gain, as efficiently as possible, a sustainable advantage over their competitors." (Ohmae, 1983) “The competitive strategy is to establish a profitable and sustainable position against the forces that determine industry competition." (Porter, 1985) “ It is through the strategy that the company will position itself in the decisionmaking regarding enterprise and competitiveness, that is, how will the direction of the organization to act in the face of competitive threats.” (Mintzberg, 2000) (Mintzberg, 2000) The questions that many people make is: As logistics show is a timely and effective choice with the new requirements of the market? As the logistics can be seen as a strategy? Some of the answers can be found by analyzing the following aspects: •

the evolution of its concept: to incorporate and use the precepts of marketing, quality, finance and planning, logistics has become a multi-

discipline, and thus increased its contribution to the efficiency and effectiveness of management. Furthermore, it is able to maintain attention to the needs within the company and at the same time, turning their eyes to what our customers; •

increasing its scope: over time, logistics has to worry about a growing number of activities and no longer seen as operating to become strategic. Thus, should be considered in important decisions and receive the attention of the highest echelons of the company;

•

the expansion of its coverage: initially treated in a functional way, he joined the various functions within the company and now works as a liaison between customers and suppliers;

•

systemic approach and orientation processes: give a complete picture of the company and the supply chain as a whole. Thus, in an integrated manner, provides that all interests and points will be analyzed in decision-making;

•

concern with the management of flows. The first is the flow of materials, which starts at the supplier and ends at the final consumer. The second is the information, which has an opposite direction as before. Then, by synchronizing and streamlining of these flows, we seek to simultaneously reduce inventories, which are consumers of resources, and increased product availability. This synergy helps, too, the company's cash flow.

Organizations need to find out what are the components of value that customers appreciate and seek to carry out actions that will result in adding values to their customers. Thus, you can know where the problems of logistics systems and develop a set of performance indicators that will serve as logistics for the implementation of benchmarking between sectors and between companies themselves. The solution of the difficulties of logistics will help create greater competitiveness of the Brazilian economy. Using the concepts exposed and the global context, we can conclude with certainty that the Logistics presents itself today as a formidable tool for creating competitive advantage in organizations. The global environments require efficient and effective exchange of products and goods that flow through

international and regional channels and tuned. It is no accident that the United States, the costs of logistics reach the figure of over 1 trillion dollars, which means about 10% of the GDP of that huge country. * Logistics Specialist at the University Of Miami - USA and Director of the Institute of Logistics Sagres.