Developing a Logistics Strategy
Given the changes in the business marketplace that dynamically affect logistics operations, such as emerging technologies and industry initiatives, developing and using a formal logistics strategy to guide your operations is now more important than ever.
The Case For Creating a Logistics Strategy
The process of developing a logistics strategy does more than just create the strategy itself. The discovery processes involved can:
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- Enhance intra-company communications
- Identify potential areas of weakness
- Identify untapped sources of competitive advantage such as cooperative supply chain initiatives that could be the key to maintaining future cost competitiveness and solid client relationships.
Despite these inherent benefits, surveys report that only 40% of senior logistics professionals have a formal logistics strategy in place.
Faced with regional consolidations, resource and cost reduction plans, operating and customer issues and industry initiatives, they have no time left for the critical strategy task. Furthermore, some may not have gotten the required training in the logistics strategy process, components and methods.
Nevertheless, new technologies and changing distribution channels make it critical for every firm to foresee the impact of these coming changes and position their operations proactively. Developing a logistics strategy can be critical to mid and long term success.
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