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There are many shifts and changes that occur in an organizations logistics, all of which have a direct or indirect impact on the supply chains logistic operations.
The supply chain is a network of organizations that are involved, through upstream and downstream linkages, in different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer. (Christopher 1998). With the logistical activities defined as, the process of strategically managing the procurement, movement and storage of materials, parts and finished inventory (and related information flows) through the organization and its marketing channels in such a way that current and future profitability are maximised through the cost effectiveness of orders. (Christopher 1998).
The supply chain basically has three main parts, supply, manufacturing, and distribution, and the chain regularly starts with the suppliers of suppliers and ends with the customers of your customers. (www.centipedia.com).
Strategy can be defined as the direction and scope of an organization over the long term, which achieves advantages in a changing environment through its configuration of resources with the aim of fulfilling the stakeholders expectations. (Johnson 2005).
The development and ongoing use of a formal logistic strategy is to guide logistic operations through times of change and will identify potential strengths and weakness within the supply chain logistic operation. The creation of a logistic strategy can be achieved from a solid understanding of basic logistics, current and emerging technologies and initiatives, industry forces and the logistic operations current and future aims. The ...