MSC 2.docx - A critical analysis of differing strategic perspectives of producers retailers and logistics service providers and their potential impact

MSC 2.docx - A critical analysis of differing strategic...

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A critical analysis of differing strategic perspectives of producers, retailers and logistics service providers and their potential impact on the supply chain. In supply chain, it could not be denied that producers, retailers, and logistics services providers are interrelated. It other words, it means that there is relationship between producers, retailers and logistics services providers. Specifically, producers produce products needed by the market and supply those products to retailers before it could reach to customers. Meanwhile, when producers hand over the products to retailers, they required the services from logistics services providers. In addition, good relationship between these three parties would bring a lot of advantages to buyers, traders, wholesalers and processors (Boniface, 2012). Among the advantages are included low transaction costs, improved efficiencies, joint decision making, enhance sharing of information as well as joint investments (Batt, 2003). However, no matter how well is the competitive strategy designed by company, the fundamental processes is focusing on the satisfaction of customers. Christopher and Juttner (2000) further explained that among the fundamental processes are included the development process for new and innovated products, the customer management process, the order fulfilment process as well as supply chain process. Supply chain management is focusing on the methods how organisation can achieve a more cost effective satisfaction of end users requirements through buyer- supplier process integration. Specifically, this integration can be achieved by organisation through a greater transparency regarding the needs and wants of customers by utilising the sharing of information Moreover, this integration is subsequently compounded through the establishment of a process which could link between the identification of a physical replenishment need together with the just in time practice (Christopher and Juttner, 2000). One of the examples of organisation who is very well in practicing this just in time method is Toyota. Nevertheless, Aksoy and Öztürk (2011) added that the reason that encourage most organisation to implement just in time practice is due to economic factor, and partly because of the search for continuous quality improvement and innovation, as well as based on the realisation that there is limits on the extend of which the relationship between themselves and suppliers can be managed effectively. As a result 1
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of the emerged supply chain relationship, a growing inter-dependency among producers, retailers and logistics services provided had exist within the supply chain process (Loppacher et al. , 2006). As the level of inter-dependency is increasing, it is getting more organisation found out that great cooperation and partnership is a significant pre-requisites for them to achieve the long term mutual benefits between parties involved. Other than that, there are implications for competitive strategy of the
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