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Logistics Business Model for Win-Win Strategy : Logister & Velcro Structure  

Paik, Si-Hyun (Yanbian University of Science & Technology, Dep. MIS)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.29, no.3, 2006 , pp. 33-42 More about this Journal
Abstract
From middle of 90's, SCM had emphasized the importance of connection of all companies which participate to a market, and outsourcing has emphasizes the slim structure of companies for pursing cost reduction and service improvement. But outsourcing as '2-1=1' and integration as '1+1=2' not adapt to the advanced market but return to the former state. Besides, it is impossible of subcontractors and logistics companies to execute these strategies which are win-win strategy and outsourcing. So many logistics companies have sharp competition in price recently. Therefore logistics companies have increased the need for a profitable business model and strategy. This paper researches the limitations of logistics market and redefines the role of logistics through the evolution of logistics. Also this paper proposes new role(Logister) and structure(Velcro structure) for not maker-oriented logistics but market-oriented logistics. The introductory case study will help to understand 2 terms(logister and velcro structure).
Keywords
Logistics; Logister; Velcro structure; TPL(Third Party Logistics);
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