Supply Chain Logistics Management, 3rdEdition

Abstract

The efficiency and effectiveness of the logistics operation has a considerable influence not only on the business performance of manufacturers but also on the customer’s perception of the quality of the products and services provided by the plant. If inbound material flows from the supplier are erratic, the firm’s internal operation will not be able to sustain their production strategies without a high level of safety stock. Similarly, if the flows of finished goods to the customer are unreliable, the firm’s customer base will be dissatisfied. Accordingly, logistics is strategically important in many industries as it is central to achieving competitive advantage