Development of logistics strategies for changing supply chains
As the supply chains are constantly changing and evolving, a company needs to develop a number of logistics strategies for specific product lines, specific countries or specific customers. This allows a company to ensure flexibility in supply chain by identifying the impact of imminent changes and making organizational or functional changes to ensure service levels are not reduced.
When developing a Logistic Strategy, a company has to look at four distinct levels of their logistics organization. Firstly, the logistics strategy should examine the company’s objectives and strategic supply chain decisions and review how the logistics organization contributes to those high-level objectives. Secondly, the logistics strategy should examine the structural issues of the logistics organization, such as the optimum number of warehouses and distribution centers or what products should be produced at a specific manufacturing plant. Thirdly, the logistics strategy should review how each separate function in the logistics organization is to achieve functional excellence. Lastly, the plan for implementation of a logistics strategy should look into the development or configuration of an information system, introduction of new policies and procedures and the development of a change management plan.
Besides examining the four levels of logistics organization, the company should also look into these component areas like transportation, outsourcing, logistics systems, competitors, information and strategy review.
Subscribe to the comments for this post