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Global and local logistics strategies in international supply chains

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  • Liubov Lipych

Abstract

Globalization trends have led to the creation of global supply chains. The purpose of the article is to identify the complementarities of the basic competitive strategies of the global supply chain with local logistics strategies. It has been established that a logistics strategy is a set of internally and externally coordinated, long term decisions and actions regarding accommodation and transportation. inventory management, warehousing and customer service, in order to gain and maintain a competitive advantage. Potential opportunities (greater opportunities to use economies of scale, better use of production capacity, transportation and storage, optimization of inventory costs, location of production activities near trade points or in resource-rich places, concentration of scientific research in countries with a high level of innovation) and threats are identified and risks (greater complexity of logistics processes, greater distance of moving products across state borders, higher management costs in a company that acts as a central flow coordinator, functioning in different socio-cultural conditions, unification of systems, procedures, processes and standards while maintaining differences, resulting from local political, legal, economic, environmental and infrastructural conditions) of the development of global supply chains. It has been proven that according to the principles of strategic management, the goals, means and tools of the enterprise's local logistics strategies should be consistent with the general strategy of the development of the global supply chain, and the latter with the competitive strategy. It is substantiated that the traditional methodology of strategic analysis should be used when forming a global supply chain strategy. In global supply chains working for individual B2C customers, the main task of the local logistics strategy is to adapt the quality of services to various customer expectations at an acceptable level of costs. Global integration and local adaptation of logistics strategies in B2B relations, in addition to economic results, must take into account social and environmental standards

Suggested Citation

  • Liubov Lipych, 2022. "Global and local logistics strategies in international supply chains," E-Forum Working Papers, Economic Forum, vol. 12(4), pages 158-166, October.
  • Handle: RePEc:cuc:eforum:v:12:y:2022:i:4:p:158-166
    DOI: https://doi.org/10.36910/6775-2308-8559-2022-4-20
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