Historically, companies differentiated themselves by offering the best product or the lowest price. However, with increasing competition and reducing margins, it has become increasingly difficult to differentiate by this traditional logic, making logistics a source of competitive advantage.
One of the ways to conquer your customer through logistics is the level of service delivered. Product availability, availability of information and on-time delivery are just a few examples of the factors that logistics can add to the customer's shopping experience.
In addition to expanding the benefits perceived by the customer, the logistics area can also add value by increasing the company's revenue and reducing operating costs, goods sold and taxes, in order to maximize the profit that is delivered to shareholders.
Reduction in operating expenses
Ensuring operational efficiency in managing the order cycle, transport, inventory and storage is fundamental in the cost-cutting process, making operational issues strong allies in cost reduction.
Reduction in Cost of Goods Sold (COGS)
Strategic supply and supplier relationship management can ensure lower acquisition costs.
Sales tax reduction
As the Brazilian tax burden is very high and complex, the definition of a logistics network with tax optimization can significantly reduce taxes.
increase in revenue
Through the reduction of ruptures at the point of sale, better positioning of stock in the chain and positioning of the logistics network to support better customer service, logistics can work as a sales lever.
Logistics, therefore, can no longer be seen as just another cost center, but as an opportunity to gain competitive advantage and increase profit, either by increasing revenue or reducing costs.
References
Beatris Huber
https://ilos.com.brManaging Partner of ILOS, Master in Business Administration from COPPEAD/UFRJ with extension at the European Business School – EBS, Germany and Business Administration from UFRJ. More than 10 years of experience in training and consulting projects, focusing on Logistics and Supply Chain. In the training area, he developed company games and online courses and today teaches classes in Data Analysis, Inventory Management, Warehousing Management, in addition to applying business games such as Beer Game in open and in-company programs in companies from different segments, such as Coca -Cola, Nestlé, ThyssenKrupp, Votorantim, Carrefour, Mallinkrodt, Souza Cruz, Via Varejo, Monsanto, Itaú, Renner, Ipiranga, among others. In consultancy, he carried out projects such as Redefinition of the Logistics Network, Inventory Management, S&OP Process Structuring and Diagnosis of Storage and Transport Operations in companies such as Coca-Cola, Souza Cruz, Editora Moderna, Petrobras, Ducoco, Ultragaz, Silimed, Eudora among others.
