introduction to logistics-part-3

1. Logistics Management
(Part of ORL)
BBA (Semester 4)
Faculty : Ravi Kumar Singh, International School of management Patna
Lecture-3 : Introduction to logistics

2. Lecture-3 : Introduction to logistics
Topics to be covered :
● Concept of Competitive Advantage
● Logistical Competitive Advantage
● Logistics as a system
ISM Patna/Logistics_1_Ravi_K_Singh

3. Recap of Lecture-2
ISM Patna/Logistics_1_Ravi_K_Singh
1. Logistics Chain
2. Significance of Logistics
3. Objectives of Logistics Management (To be competitive by
optimising all the operation)

4. What is Competitive Advantage ?
The generic meaning of the term ‘Competitive advantage’ involves the
firm’s ability to differentiate itself with others in the eyes of the
customers by giving superior value through its various activities.
•In other words, If the firm or brand is preferred over its competitors, we
can say that the it has an advantage over the competitors.
• According to Michael Porter, competitive advantage can come from :
• - Overall Cost Leadership,
- Differentiation,
- Focus.

5. Competitive Advantage (Cont...)
ISM Patna/Logistics_1_Ravi_K_Singh

6. GENERIC VALUE CHAIN MODEL
ISM Patna/Logistics_1_Ravi_K_Singh
Michael Porter
has introduced
‘Value-Chain
analysis’, a tool
for analyzing the
sources of
competitive
advantage.

7. Logistical Competitive Advantage
ISM Patna/Logistics_1_Ravi_K_Singh
Competitive advantage
can be created &
achieved by logistics
managers in two ways :
- Cost advantage,
and
- Value advantage.

8. 8
Logistics –A system Approach
All the activities of material movement across the business process are interdependent
and needs close coordination and these are to be maintained as a system.
1. Order Processing
2. Information Flow (LIS)
3. Warehousing
4. Inventory management
5. Packaging
6. Transportation
7. Material Handling

9. 9
Summary of Lecture-3
In this lecture we discussed about-
1.What is competitive Advantage?
2.What is the role of Logistics in gaining CA?
3.Logistics as a system.