Many firms in the process industry consider logistics as part of their overall supply chain, but fail to differentiate between logistics strategy and logistics planning. Firms that explicitly distinguish between these activities benefit in at least three ways:
-Opportunities for differentiation based on operational, logistics, or customer service excellence are more likely to be exploited.
- Logistics tends to have a more visible and important role in the company.
- Investments in the logistics function or infrastructure are more likely to be approved.
In firms that do not differentiate between logistics strategy and logistics planning, logistics tends to become just a budgeting exercise, and seen as a "cost" rather than value added activity.
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1 comment:
Nice comparison... A successfully implemented logistics strategy is important for companies who are dedicated to keeping service levels at the highest levels possible.
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