Marketing. Firms gain competitive advantage Case Study

Marketing. Firms gain competitive advantage - Case Study Example For many years, logistics inefficiencies have been criticized and scrutinized in order to increase productivity. There has been little close examination of possible savings in the area of physical distribution, now known as logistics. There is a movement towards a closer analysis of all aspects of logistics. This is particularly important where selling and distribution costs are high. One of the new methods in logistics is wireless technologies used by UPS and FedEx which help them to create state-of-the-art solutions for difverse customer groups. In other words, firms are a sum of their activities and not just comprised of a series of discrete functions. Logistics is therefore not just about managing functions, but managing linkages between those functions. More will be said about the integration of various facets of the value chain in the discussion on implementation strategies. FedEx Executive says: "Wireless data connectivity is something we've done for many years. But we had to provide our own bandwidth and we had to develop technology to manage it" (Gruman 2006). At this stage, what is important is to understand how logistics companies can analyze current position along various dimensions of the value chain - in essence, their strengths and weaknesses. ... real-time data to manage their operations, and the only way for the companies to get this near-real-time information is through the use of wireless technology in the field and in their facilities" (Gruman 2006). UPS and FedEx take into account internal and external factors that influence location of the goods. The Concept of 'Place' and its Role in New Logistics Looking at the concept of 'Place' from a total viewpoint, may indicate that some parts of the system can operate at less that the optimum in order to make the whole system more effective. For example the production manager may need to schedule shorter runs, or the transport manager more frequent deliveries, if it benefits the total logistics system. Acceptance of the new logistics concept implies a recognition of the fact that an action affecting one part may affect all others (Chase, Jacobs 2003). So a united approach is needed in order to maximize overall effectiveness. One of the main innovations used by UPS and FedEx is that: 'The two companies are exploiting new wireless technologies in their differing attempts at aiding the two main components of their operations: pickup/delivery and packaging/sorting" (Gruman, 2006). In order to produce or provide quality service to a required quality level, at an appropriate time and within acceptable financial constraints, logistics create a number of functions that are essential. For instance, using UPS and FedEx new logistics flexible organizations have the potential to maximize benefits from different locations and national economic conditions through a variety of means: locating businesses in markets where factor conditions are favorable leading to cost advantages and efficiency; operating in non-domestic markets where "demand conditions are more favorable"