The scope of today’s customers needs broadened, but companies are finding it extremely difficult to maintain their competitive advantage purely on the basis of innovative strategies based on the product, price, place, or promotion. As these competitive advantages can easily be replicated, the emphasis is on using logistics as a mean of differentiation from the competition. Simply it means putting the right product the right place at the right price and in the light condition.
Logistics service exists to improve the performance of a company’s warehousing, inventory management and distribution network. It also reduces the number of inventory holding locations, as well as the size and value of inventory held. It provides the global transportation networking enabling the access and dispatch of inventory 24/7 and improves cash flows by using bonded warehouses which provides the options to defer customer duties and taxes, and the flexibility to change distribution patterns for new products, based on customer demands.
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