Given the on-going transformation of logistics strategies and the increased visibility of logistics, how can educators teach this subject to students, the logistics managers of the future? The premise of this paper is that logistics strategies can neither be taught nor understood by students without a framework that relates logistics to corporate strategy.
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A recent CLM-Ohio State University report on strategic planning in logistics states that logistics is becoming an integral part of corporate strategic planning and that logistics is benefitting from recent emphasis on customer service and JIT systems.(4) This transformation has also been accompanied by greater visibility for logistics in the corporate executive suite. Recently, Xerox slashed inventories and related assets by nearly $1 billion by coordinating the product flow through its channel of supply and distribution.(2) Sears has contracted its LTL and intermodal transportation requirements to third-party logistics firms.(3)Īs these examples suggest, logistics strategies are undergoing a transformation to a form more complex, longer lasting, less easily reversible, and having more at stake than ever before. Training future logistics managers: Logistics strategies within the corporate planning frameworkīose Corporation, the audio equipment company, has entered into partnerships with transportation carriers, suppliers of plastic and metal parts, and printing vendors in a program it refers to as JIT II.(1) Under this program, big volume improvements are front loaded for the supplier, resulting in the elimination of certain conventional sales and purchasing activities and leading to a more active involvement of the vendors’ in-plant representatives with Bose’s manufacturing operations.