Page 317 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management Neha Tikoo, Lovely Professional University

Notes Unit 14: Supply Chain Logistics Administration

CONTENTS
Objectives
Introduction

14.1 Relationship Development Management
14.1.1 Relationship Management
14.1.2 Customer Relationship Management (CRM) Focus

14.1.3 Internal Supply Chain Management (ISCM) Focus
14.1.4 Supplier Relationship Management (SRM) Focus
14.2 Operational Performance
14.3 Financial Performance
14.3.1 Asset Utilization

14.4 Social Performance
14.4.1 Supply Chain Security
14.5 Summary

14.6 Keywords
14.7 Review Questions
14.8 Further Readings

Objectives

After studying this unit, you will be able to:

 Understand the Relationship Development Management
 Explain the Operational Performance
 Discuss the Financial Performance

 Describe the Social Performance
Introduction

Logistics Function plays a very strategic role in achieving the twin objectives of any Firm i.e.,
Superior Customer Service and Cost Reduction. The aim of Logistics Strategy should be to play
a proactive role for sustainable competitive advantage in a dynamic business environment. The
new competitive framework of Logistics as a service function includes: Responsiveness,
Reliability, Relationship and Rationalization. The basic driver of the Supply Chain is the concept
that for a single company to successfully compete in a market where there is increasing demand
from customers, escalating competition, etc. – it has to seek partners who are willing to share
risks and rewards. It has to enter into collaborative activities and work, on a reciprocal basis, so
that it may be able to show superior performance. Firms enter into inter-firm integrative and
collaborative arrangements through the supply chain. The strategic role of the supply chain is in

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