The internal and external analysis is crucial during the process of logistics strategic plan development. Internal analysis refers to identification process and evaluation of a project’s specific characteristics such as the core competencies, the capabilities, and available resources. The internal analysis elements include the mission, the set strategies, the plan’s current vision and the strategic objectives. The external analysis comprises the identification of different outside factors that are likely to have an effect on the development of the plan. The external analysis can be complex and diverse than the internal analysis. The external factors that the analysis can consider include the technological, global, demographical, sociological and political.
Internal analysis is beneficial in the generation of proper strategic decisions. It will help in identifying the financial, physical, human, structural-cultural and intangible resources that are available and how they the impact that they have on the development of the logistics strategic plan. It will help in identifying ways of transforming the resources into outputs, that is, products and services. The internal analysis will be crucial in knowing how the available capabilities can help in addressing the environmental changes that may occur during the development process (Lambert, & Ellram, 1998).
The internal analysis is important since it helps in detecting the available core competencies and capabilities. It acts as guidance in identifying the available strengths and weaknesses. By realizing the available strengths, the plan developers can utilize the opportunities to full potential so that they can yield more positive outcomes (Hertz & Alfredsson, 2003). The planners will also identify appropriate ways of overcoming the existing weaknesses so that they do not adversely affect the development plan and the expected future outcomes.
The external technological analysis will help the planners in identifying the modern technologies that are available which can help ease the whole process. They can also avoid technologies which can have future negative impacts. It will be essential since it will assist in having knowledge about the competitiveness of the plan. There can be the development of a plan with unique branding strategy thus the strategic plan will gain a sustainable competitive advantage.
The external analysis will help in identifying the threats of outsourcing. It is achievable by compiling an environmental scan. The analysis will assist in identifying individuals who will profit from the plan thus it at an early stage they can find ways of incorporating the beneficiaries in one way or another. Any logistics development plan should comply with the regulatory authorizes. Thus the analysis will be critical in recognizing the specific authorities to adhere to the necessary steps required (Stock & Lambert, 2001).
The external analysis puts into the light on how the plan can detect the potential threats and opportunities while the internal analysis is necessary for presenting how the project can turn these threats and opportunities into being helpful in nature (Hertz & Alfredsson, 2003). The analysis will help the planners in clearly identifying both positive and negative future outcomes. The development of the plan will be successful with this consideration because they will have an opportunity of addressing numerous issues before the actual implementation process.
The process of analysis yields valuable information regarding what the development will utilize such as the specific processes, assets, work routines and skills. The combination of information from the external and the internal analysis develops the basis for developing appropriate strategic alternatives during the process of generating a logistics strategic plan. Therefore, it is important that before the commencement of any logistics program development, there should be a consideration of both internal and external analysis.
References
Hertz, S., & Alfredsson, M. (2003). Strategic development of third party logistics providers. Industrial marketing management, 32(2), 139-149.
Lambert, D. M., Stock, J. R., & Ellram, L. M. (1998). Fundamentals of logistics management. McGraw-Hill/Irwin.
Stock, J. R., & Lambert, D. M. (2001). Strategic logistics management (Vol. 4). Boston, MA: McGraw-Hill/Irwin.
