In addition, the logistics system achieves global efficiency in both on-time delivery (JIT) and global quality components.No doubt, all of these features of the logistics will create an unconventional advantage that can be called the Logistics Advantage, a feature that makes the commodity competitive in global markets.
1) Importance of logistics:
Logistics activities include 14 activities, including transportation. Statistics indicate that transport logistics costs alone account for about 10.5% of the world production cost.
It was considered that developing countries, including the Arab Group, had no interest in logistics, nor was there a precise study of the cost of logistics for foreign trade in any of these countries. Therefore, a significant rise in the cost of producing goods and services in these countries As a result of the physical and human return of the products of these countries, which is losing them competitiveness in the global markets.
2) Total quality as a tool of logistics:
Quality is a cornerstone of the logistics process, and the close relationship between logistics and quality has a long-term economic impact.
3) Logistics feature:
What is important here is how to create the logistical advantage through the logistics chain by controlling costs in all 14 cycles by regulating the productivity of the equipment and eliminating the material and temporal yield, and the administrative, documentary and legal procedures required, which reduces the cost Production to 50%.
4) Relationship of logistics advantage to competitive advantage:
Porter’s theory of “comparative advantage” was considered a substitute for the theory of comparative advantage. The study concluded that the “logistic advantage” is not the “competitive advantage”. It is the alternative to Ricardo’s comparative advantage theory based on The Logistics Value Chain is the only one that can create logistics value in a way that coordinates supply and demand. It controls the flow of internal and external materials, so that we get the commodity in the right quantities, in the right place, in a timely manner and at the right cost.