Tozer and Jamison should focus on Wheels International strategy where long term goals and objectives of the organization can remain competitive amidst the rapid market development. The Wheels group would be able to remain highly competitive in the advancing market through development of logistics service and managerial aspects in Wheels International. Unlike Wheels International, Wheels Dedicated has a limitation of advancement and development of its key competence aspects to enable continued growth and profitability into the future. More so, Wheels International efficiencies and competitive advantage over competitors will be of high value in service oriented and management strategies (Cahill 26).
Managerial perspectives and logistics in any given organization are subject to key competence and development depending on technology, unique managerial skill and information sharing. Information is critical success of given tasks and organizations as a whole where costs, time and customer satisfaction are matters of concern. Once an organization is capable of managing its costs, time and ensuring customer satisfaction, it propels its competitive hedge to higher levels over its competitors. In conclusion, shifting from typical operations to a vendor managed inventory system has many effects on inventory. Benefits of such key competence include low costs of operation and production, increased customer satisfaction and operation efficiencies. Third Party Logistics Service providers are more or less information oriented and would require that free flow of information with their clients is highly necessary for effective operations (Cahill 28).
Potential problems that can be faced by logistics service providers such as Wheel Group range from internal factors to those that emanate from the environment in which they operate. In servicing the local and international market, Wheels group may encounter pitfall such as poor communication from their clients. Logistics service providers being dependent on free and relevant access to information, the success is jeopardized since this dependence is more a necessity. Although the strength of communication and access to information may be external and non controllable, the organization may undertake to build trust with clients to improve communication. Clients may be less communicative and willing to give out relevant and accurate information with regards to their confidentiality perspectives and perception to the service providers (Koch 50).
Service providers may also be faced with high costs in acquiring new and advanced technological equipment which would enable effective management of information. Machines such as computers and internet installation equipment may be highly costly depending on the amount of information being handled and the time limit in which access to information and distribution is done. Most logistics service providers may also suffer from poor image and customer perception towards the organization with regards to physical and visible limitations. Since such organizations have limited shelf space and operations vicinity, clients tend to ignore their service perspectives and pass judgments with regards to physical appearance. There success and public image depends on customer satisfaction rather than organization growth and profitability which may remain non visible (Koch 56).
Although such organizations may be highly successful; with tremendous growth, public perspectives remain focused on the extent to which clients are satisfied. To overcome demeaning customer perceptions, such organization need to embark on serious branding and marketing to promote a positive image of the organizations. Although this may not be supported by physical evidence, branding and marketing would help maintain imaginary perspective among its clients and the general public. Public image and success levels will be likewise promoted by marketing and branding strategies irrespective of their invisibility in terms of growth and success (Koch 58).
Wheels group strategy will be less viable in the next five years since its competitiveness and advancement is tied to Wheels International and wheels Logistics. Wheels Group competitiveness in future is highly dependent on effective information sharing and management with regards to Wheels International and Wheels Logistics functionalities. However, the Company is focused on both assets based strategies which pose a future threat to development. Transport services can only be developed through effective management, reporting and transparency with respect to key competence and having competitive edge over its competitors (Cahill 31).
Asset based subsidiaries remains highly limited with regards to future development and key competence where service oriented companies continuously develop new insights to better performance. On the other hand, light assets based subsidiaries may be boosted by continuous managerial development while dragging behind on physical perspectives. More so, people and assets may only become more effective in new technologies. Intellectual capabilities are not freely accessible to competitors. Highly competitive markets require highly skilled individuals with the use of up to date technological assets as the basis to entry. For organizations to have competitive advantage over their competitors, information and managerial perspectives in service provision remains a major determining factor to the future of businesses (Koch 60).
In brief, business flourishing is largely dependent on the use of up to date technology and managerial skills. Customer service is important and should be handled with qualified personnel who are capable of being client friendly. The effectiveness of the services offered in any enterprise determines how well and first it can develop.
Cahill David. Customer Loyalty in Third Party Logistics Relationships. Findings from Studies in Germany and the USA. New York, NY: Springer, 2006. Print.
Koch Tomasz. Lean Business Systems and Beyond: First IFIP TC 5 Advanced Production Management Systems Conference. New York, NY: Springer, 2008. Print.