Case Analysis Of National Logistics Management.

1100 words - 4 pages

In less than two decades National Logistics Management has already become one of the most successful and fast growing logistics companies of the USA. Despite increasing competition in logistics, NLM continues to adapt itself to the changing environment. Suffice to state just one fact: two years in a row ( in 2004 and 2005 respectively) - two reputable and well-known magazines- Inc. magazine and Start magazine recognized NLM as one of the most innovative and fast growing companies. Undoubtedly, the innovative strategy of providing cost-effective way to facilitate and expedite premium freight is behind the success of the company. However, will NLM be able to maintain and enhance its profitable business in the new era of increased competition in the logistics industry? How it should adapt itself to surmount future challenges? In order to answer these questions one should look back in the past and analyze how this company has become the leader in the premium logistics management.The company was founded in 1991 by Taylor, right from the start the company implemented an innovative approach- premium shipments were put by bid to the definite group of carriers. The former had to respond quickly in order to receive the order. Once several responses had been obtained the contract was awarded to the best bidder (the winner was determined by the number of factors: the price, the quality of the services provided and etc). NLM tracked the status of the order until the goods had been delivered, keeping all parties informed. Despite the obvious fact that this system was more convenient and more efficient, some carriers as well as plant managers were dissatisfied with it, but NLM took several steps to remedy the situation. The company has maintained its approach since 1991.The innovative strategy implemented by company has several important advantages: it saves time and money by allowing all parties involved in the process to communicate instantaneously without making several phone calls and by expediting the process of premium freight. By now the company has managed more than 1.3 million of shipments, it has extensive network in North America and has build steadfast group of carriers.Environmental analysis.In today's world of ecommerce and internet, when goods and services can be purchased instantaneously online, only those companies that implement new technologies will be able to survive; thus the logistics companies have had to use internet to inform their clients about quotes, facilitate the shipments of the goods and track other information.Moreover, transport companies combined their resources with manufacturers and internet companies to expedite the delivery of their goods and improve the efficiency of the shipment. One of the most famous examples is the alliance of Ryder System Inc with Toyota, which was formed in order to increase the quality of transportation management. This process was also evident in airline industry where airlines use web-based...

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