Companies can also createmanagement positionsthat link the logistics activities of functional areas.Forexample,Procter&Gamblehascreated"supply managers"who manage all of the supplychain activitiesfor each of its product categoriesMany companies have a vice-president of logisticswith cross-functional authority.In fact,accordingto one logistics expert,three-fourths of all majorwholesalers and retailers,and a third of majormanufacturing companies,havesenior logisticsofficers at the vice president or higher level.Thelocation of thelogisticsfunctions within thecompanyisa secondary concern
◼ Companies can also create management positions that link the logistics activities of functional areas. For example, Procter & Gamble has created “supply managers” who manage all of the supply chain activities for each of its product categories. Many companies have a vice-president of logistics with cross-functional authority. In fact, according to one logistics expert, three-fourths of all major wholesalers and retailers, and a third of major manufacturing companies, have senior logistics officers at the vice president or higher level. The location of the logistics functions within the company is a secondary concern
BuildingChannelPartnershipsThe members of a distribution channel are linkedclosely indelivering customersatisfactionandvalue. One company's distribution system isanother company's supply system.The successofeachchannel memberdependson theperformance of the entire supply chain.Forexample,Wal-Mart can chargethelowest pricesatretail only if its entire supplychain-consistingof thousands of merchandise suppliers,transportcompanies,warehouses,and serviceproviders-operates atmaximumefficiency
Building Channel Partnerships ◼ The members of a distribution channel are linked closely in delivering customer satisfaction and value. One company’s distribution system is another company’s supply system. The success of each channel member depends on the performance of the entire supply chain. For example, Wal-Mart can charge the lowest prices at retail only if its entire supply chain—consisting of thousands of merchandise suppliers, transport companies, warehouses, and service providers— operates at maximum efficiency
Companies must domore than improvetheir ownlogistics.They must alsowork withotherchannelmembers to improve whole-channel distribution.Forexample,itmakes littlesense forLevi-Straussto ship finished jeans to its own warehouse,thenfrom these warehouses to JC Penney's stores.If thetwo companies can work together,Levi Straussmight be ableto ship much of itsmerchandisedirectlyto JC Penney's stores,saving time,inventory,and shipping costs for both.Today,smart companies are coordinating their logisticsstrategies and building strong partnershipswithsuppliers and customers toimprove customerservice and reducechannel costs
◼ Companies must do more than improve their own logistics. They must also work with other channel members to improve whole-channel distribution. For example, it makes little sense for Levi-Strauss to ship finished jeans to its own warehouse, then from these warehouses to JC Penney’s stores. If the two companies can work together, Levi Strauss might be able to ship much of its merchandise directly to JC Penney’s stores, saving time, inventory, and shipping costs for both. Today, smart companies are coordinating their logistics strategies and building strong partnerships with suppliers and customers to improve customer service and reduce channel costs
Thesechannel partnershipscantakemanyformsMany companieshave created cross-functionalcross-companyteams.For example,Procter&Gamble hasa teamof almost 100 people livingin Bentonville,Arkansas,homeof Wal-Mart.TheP&Gers work with their counterparts at Wal-Martto jointly find ways to squeezecosts out oftheir distributionsystem.Working togetherbenefits not only P&G and Wal-Mart,but alsotheir final consumers,Haggar Apparel Companyhasa similar system called"multiplepoints ofcontact,"in which a Haggar team works with JcPenney peopleat corporate,divisional,and storelevels
◼ These channel partnerships can take many forms. Many companies have created cross-functional, cross-company teams. For example, Procter &Gamble has a team of almost 100 people living in Bentonville, Arkansas, home of Wal-Mart. The P&Gers work with their counterparts at WalMart to jointly find ways to squeeze costs out of their distribution system. Working together benefits not only P&G and Wal-Mart, but also their final consumers, Haggar Apparel Company has a similar system called ”multiple points of contact,” in which a Haggar team works with JC Penney people at corporate, divisional, and store levels