ABSTRACT

This chapter explores how to use supply chain management and logistics to achieve and sustain competitive advantage. The selections focus on practicalities rather than theory—how to use logistics as a source of differentiation and how to organize and manage to capitalize on this possibility. It has been written about topics such as "Logistics as a Strategic Weapon," 'Creating Competitive Advantage from Logistics," and "Value-Added Logistics." Although the emergence of logistics as an important competitive element is perhaps most striking in the three industry sectors, it has occurred to varying extents in many other fields as well. An increasing number of companies are awakening to the concept of differentiated distribution. Value-added logistics, by contrast, can be an enduring avenue to competitive advantage. The concept of a time-based competitive strategy is gaining increasing favor. JIT logistics programs apply JIT principles to the management of raw materials inventories and inbound supplies.