Logistics, Supply Chain and Competitive Strategy
Logistics and supply chain management are not new ideas. From the building of the pyramids to the relief of hunger in Africa, the principles underpinning the effective flow of materials and information to meet the requirements of customers have altered little.
Throughout the history of mankind wars have been won and lost through logistics strengths and capabilities – or the lack of them. It has been argued that the defeat of the British in the American War of
Independence can largely be attributed to logistics failure. The British
Army in America depended almost entirely upon Britain for supplies.
At the height of the war there were 12,000 troops overseas and for the most part they had not only to be equipped, but fed from Britain. For the first six years of the war the administration of these vital supplies was totally inadequate, affecting the course of operations and the morale of the troops. An organization capable of supplying the army was not developed until 1781 and by then it was too late.1
In the Second World War logistics also played a major role. The Allied
Forces’ invasion of Europe was a highly skilled exercise in logistics, as was the defeat of Rommel in the desert. Rommel himself once said that
‘… before the fighting proper, the battle is won or lost by quartermasters’.
However, whilst the Generals and
Field Marshals from the earliest times have understood the critical role of logistics, strangely it is only in the recent past that business organizations have come to recognize the vital impact that logistics management can have in the achievement of competitive advantage. Partly this lack of recognition springs from the relatively low level of understanding of the benefits of integrated logistics.
As early as 1915, Arch Shaw pointed out that:
1 LOGISTICS, THE SUPPLY CHAIN AND COMPETITIVE STRATEGY
3
It is only in the recent past that business organizations have come to recognize the vital impact that logistics
Throughout the history of mankind wars have been won and lost through logistics strengths and capabilities – or the lack of them. It has been argued that the defeat of the British in the American War of
Independence can largely be attributed to logistics failure. The British
Army in America depended almost entirely upon Britain for supplies.
At the height of the war there were 12,000 troops overseas and for the most part they had not only to be equipped, but fed from Britain. For the first six years of the war the administration of these vital supplies was totally inadequate, affecting the course of operations and the morale of the troops. An organization capable of supplying the army was not developed until 1781 and by then it was too late.1
In the Second World War logistics also played a major role. The Allied
Forces’ invasion of Europe was a highly skilled exercise in logistics, as was the defeat of Rommel in the desert. Rommel himself once said that
‘… before the fighting proper, the battle is won or lost by quartermasters’.
However, whilst the Generals and
Field Marshals from the earliest times have understood the critical role of logistics, strangely it is only in the recent past that business organizations have come to recognize the vital impact that logistics management can have in the achievement of competitive advantage. Partly this lack of recognition springs from the relatively low level of understanding of the benefits of integrated logistics.
As early as 1915, Arch Shaw pointed out that:
1 LOGISTICS, THE SUPPLY CHAIN AND COMPETITIVE STRATEGY
3
It is only in the recent past that business organizations have come to recognize the vital impact that logistics