Logistics as a competitive Weapon

Logistics can create a Competitive Advantage. Logistics may be the best source of competitive advantage for a firm because it is less easily duplicated than other elements of the marketing mix: product, price, and promotion. Consider, for example, forming close, ongoing relationship with carriers or logistics services providers can help give the firm a distinct competitive advantage in speed to the customer, reliability, availability, or other customer service factors.

The power of logistics in achieving an organization's customer service goals and supporting customer satisfaction has received an increased amount of attention in the press. Companies that understand and utilize the potential of logistics as a competitive weapon include logistics as a key component of their strategic planning process. In recognition of the key role of logistics in supporting strategic customer service initiatives.

 I Just want to extract your attention  back to  the succeed military logisticians  "ALEXANDER THE GREAT and Wasn’t THE GREAT ...... LOGISTICIAN !!" he has a famous quote for the logisticians which still carries a lot weight today. He said “My logisticians are a humorless lot … they know if my campaign fails, they are the first ones I will slay.”  I love this quote because it captures the do or die nature of logistics with a funny, but morbid twist. While managers are no longer killing logistics guys, there is still a lot of pressure on the logistics function. 

Why Wasn’t That Great

The problem with Alexander’s management style is that it leads to the wrong behaviors. When the logistics guy is risking his life every time the army falls short, I’m guessing there was a lot of finger pointing, CYA and plain old lying going on.

In such an environment, team work, honesty, morale, and trying out new ideas, were probably in short supply.

The same thing happens today. If the logistics guy is going to be beat up for every problem, they will begin to withhold bad news, cover up issues and shift blame to someone else. When problems get covered up, they obviously don’t get solved.

Open Communication and No Executions

To get the most from your logistics group, you have to develop a culture that encourages open communication and continuous improvement

The foundation of that culture should be honesty. You can’t have good, open communication without honesty. If you shoot the messenger, he will stop bringing bad news. The messenger bringing bad news is actually bringing an opportunity for improvement.

Also begin using metrics or key performance indicators to measure the most important areas. These metrics should point your team to even more opportunities for improvement. Remember, the biggest problem is having no problems to work on.

Encourage experimentation and new approaches. Don’t bet the farm, but take small, calculated risks that potentially uncover better ways of doing business.

"Never slay the logisticians – they are too hard to replace"

Why Was That Great

• He developed alliances with conquered and friendly locals, which enabled his army to be constantly provided magazines of provisions. Many cities surrendered to Alexander’s army before fighting, and subsequently pledged their support and supplies to the Macedonian army.
• He marched along rivers to provide easy access to sea transport, which could deliver tons of supplies compared to 200 pounds per beast of burden. 
• He set up bases to provide shelter and supplies prior to the army’s arrival. These bases were supplied by surrendered cities, ships, or allies.
• He ordered forced, or double-time, marches to conserve supplies in difficult circumstances. This reduced not only the time needed to complete the march but also the need for additional supplies.
• Include logistics in strategic planning 
• Consistently make changes in his organization that were demonstrated to provide specific benefits
• Develop a working knowledge and detailed understanding of his customers and their products, competition, industry, logistics requirements, and technologies and utilize this knowledge, along with other assets, to develop competitive advantages, market share, and profit
• Appoint a single person to lead all logistics functions and participate in strategic planning sessions
• Develop alliances with key suppliers and service providers, accessing their infrastructure by allowing them to entrench themselves in his own company
• Utilize technology and other business tools only to the extent that they further the goals of profitability and competitive advantage

That is exactly how important logistics techniques were for him to win his battles.So, what did he exactly do? Try reading the below & understand if his stratagem were effective.

• He maximized swiftness of action and flexibility of the army by eliminating the usual traveling team of servants, wagons, and spouses from the marching army. 

In other words, this is what he has done

Hence, it can always be agreed that Alexander was the greatest as a logistician for succeeding greatly in his era. Great to also see his strategies are adopted in military as well as business logistics till to date. Now we know that not everything in logistics gets outdated. Of course, no one gets slayed for failing in logistics today. But one who doesn't remain competitive in the industry presently, will surely have his job slayed. Be a winner & win all you can.