The development of logistics has been extensively examined in the literature and it has been found that in order to ‘ to survive in such a competitive market, it is no longer enough to buy the right goods at the right cost - retailers must also get them to the right place at the right time, and with the right operational costs. Towards the above direction, it is highlighted by Baker et al. (2005) that the firm that is interested in implementing a system of logistics should primarily complete the following tasks: ‘ 1.
Layout analysis; 2. Routing analysis; 3. Bottleneck identification; 4. Bottleneck management and 5. Work-in-process (WIP) management’ (Baker et al. , 2005, 44). However, other, alternative schemes of action are also possible to be applied in accordance with the firm’ s characteristics, its long term targets, its position in the market and mainly the prospects for success offered by the particular industrial sector. Potential problems – Aspects for the futureThe cooperation between Domayne and Samsung electronics may face problems especially if the two companies fail to communicate appropriately regarding the changes in customer preferences and the support offered to the customers for the products provided by Domayne (and supplied by Samsung Electronics).
In this context, it is noticed by Robertson et al. (1995, 547) that ‘ because private sector organizations are driven primarily by the market or consumer preferences, organizational effectiveness is more readily measured in terms of efficiency and profitability’ . Because of the above reasons, it is noticed by Cook et al. (2001) that managers around the world should proceed to the following initiatives related to supply chain management: ‘ making and keeping relationships, implementing new technology in the supply channel, the use of forecasting to increase supply chain effectiveness, outsourcing to increase efficiency, and cost management as a strategic weapon’ (Cook et al. , 2001, 14).
It is not required that theoretical schemes are followed strictly; however appropriate provision should be made in order for a firm’ s customers to be protected in relation to the products offered by the company while the profitability of both the firms in the long term should be also considered.
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