You have just been hired as an Assistant Manager of Green and White Food (GWF), a restaurant/bar supply business that provides a full range of wholesale products to eating and drinking establishment in the South-East United States. The business, established 25 years ago, caters to college students-oriented bar and grills. It has traditionally offered the lowest price on the market for food service products, although the level of service offered is significantly lower than other firms, roughly around 84 % in terms of product availability. Instead, focus has been on operational efficiency to minimize costs. Growth has been steady due to the slim profit margins experienced by most of the customers that the firm serves. In the last 2 years, however, a number of competitors have begun to match GWF's prices while providing higher service levels, particularly in the areas of delivery replenishment time and product availability. As a result, GWF's market share has been shrinking and the owner worries that the basis of competitive advantage--- low price-will no longer sustain the company.
The owner has heard much talk of the importance of logistics lately, although she is not familiar with leading edge logistics practices. She has decided to ask you to assist her in the day-to- day operations of the firms with the hope that you will apply your logistics knowledge to help reestablish GWF's competitive direction and guide the company through the next stage of its growth so she can afford to retire.
1. Explain why the owner feels that logistics and supply chain management processes provide the keys to gaining advantages over competitors.
2. List three factors in GWF's business environment that have contributed to the increased importance of logistic and supply chain management processes?