How do firms compete using logistics?

Question

How do firms compete using logistics?

Answer 1

First there is a cost for logistics.  

How can a firm save money on logistics?  By studying storage requirement, shipping, maintenence, how to best provide  user support.  

One of the package shipping companies studied routing to determine the optimal package delivery routes and upon it application save tons of money.  You don't want to have too may spare parts on hand as it cost money for the extra hardware an it also cost for storage.  Nor too little that severe customer satisfaction damage because you cannot provide timely repair parts.  The customes's ability to use your product is what he uses to make money.

Second make sure the logistic provides optimal functionality.

Using efficient logistics as a marketing tool.  How long to repair broken parts and get the user back to work.  Making the part easy to use.  Getting repair parts and components that get used up (ink cartridges, lubricants, filters, tires, etc) to the user as soon as possible.  Well written user manuals.    Providing good technical support.  A good support effort can keep users returning to by more product.  You would not want to save money on support and provide totally unsatisfactory support.  

Some rental cars deliver the rental car to the user.  Geico promise easy to apply and quick service.  On the other hand, you may not want to provide so much service that consumes too much of your profit.

Well this should suffice as a starter.  Have fun.