3.0Impact Analysis of Current Global Uncertainty10
Logistics Capabilities: the path to competitive advantage
A comparative analysis on the logistics capabilities of the major suppliers collaborating with Company A, the Australian subsidiary of a leading global company, and Company B, a smaller Australian owned business. The analysis will focus on capabilities based on the findings from Esper, Fugate and Davis-Sramek (2007). The subsequent discussion explores how current global uncertainties impact Company A and Company B, and how effectively the organisatons are positioned to respond to these potential threats to the supply chain.
The first decade of the new millenium has seen much change in the way Supply Chain Management (SCM) is viewed. As such, the multiple logistic flows within any supply chain, and essentially their capabilities is receiving extensive consideration. It has been suggested that, “logistics has become more prominent and is recognised as a critical factor of competitive advantage”(Bowersox and Closs, 1996).
The global climate demands that organisational capabilities must be sustainable for continued ability to leverage competitive advantage. The capabilities must be robust enough to withstand the rapid changes that a global economy presents. Whilst there are clear supply chain advantages to operating in a global economy, this new freedom exposes supply chains to increased potential risks that have traditionally been isolated by regional trading.
This paper is divided into two sections, the first analyses four identifiable logistic capabilities, with respect to major suppliers of both Company A and Company B. The second section will discuss how current global uncertainties impact Company A and Company B, and how effectively the organisations logistics...