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The impact of Logistics and Supply Chain Management on the

competitiveness of Businesses:

❖ Logistics improve competitiveness. This is by meeting the increasing demands

of customers at the lowest cost possible above your competitors by managing
the flow of information and materials from the supplier to the consumer.
❖ Competitive advantage. Advantaging of providing value of offering services
such as delivering faster and on scheduled, product assembly and creating
customer value. Also providing cost advantage partnering suppliers and
business partners, making activities and processes more efficient. A competitive
advantage can also be a company owning their own vehicles for distribution
which make sure goods are delivered in a timely manner and quality service is
delivered.
❖ Comparative cost advantage outsourcing through:

✔ Second party/2 Party Logistics: These are companies that own and
operate the transportation of assets. Examples of 2PL are transportation
services and freight and express logistics services providers (airway,
railways, trucking companies and marine shipping).
✔ Third party: Providing one or more logistics services and the practice of
outsourcing to such a service provider. Services provided by 3PLs may
include; warehousing, packaging, customer servicing and cross-docking
(cross-docking is a practice in logistics of unloading materials from an
incoming semi-trailer truck or railroad car and loading these materials
directly into outbound trucks, trailers, or rail cars, with little or no storage
in between).
✔ Fourth party: The 4PL is the big umbrella. Under the umbrella you have
all of the supply chains – transportation, warehouses and anything that is
moving,"
✔
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Problems encountered in the Distribution Chain:

❖ Relationship between the availability of airport, harbour and docking

facilities and the efficient distribution of goods.
❖ Delayed shipment, spoilage, misdirection of goods, inadequate warehousing
facilities, lack of proper security measures, industrial unrest, and ineffective
communication.

Measures to mitigate problems, including but not limited to:

❖ Government intervention.
❖ Communication network including use of the internet.
❖ Insurance.
❖ Selecting the most appropriate channel of distribution based on product.
❖ Use handling services with a good reputation.
❖ Careful labelling and documentation.
❖ Avoid holding large stocks.
❖ Employing security companies, use of security cameras.
Forms of technology:
❖ Global Positioning Systems (GPS);
❖ Geographic Information System (GIS);
❖ Portnet: aim of helping the port and shipping communities to increase
productivity and save costs through the greater use of information technology
and the Internet.
❖ Telemarketing, e-commerce;
❖ Global logistics providers such as Fedex, DHL, and Amazon Logistics; and,
❖ Logistics hubs, for example, Jamaica.
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