Thursday, 12 January 2017

How conceptual approaches formulate logistics strategies? – Part 3 Logistics Strategy Formulation

There are three classic concepts of strategy that are used to express the strategic formulation of logistics:

  • The profession
  • The mission
  • The objectives

In order to formulate a logistics strategy the managers need to outline the varieties of movement that they produce, how it’s produced and where they’re directed along with the needs that they satisfy. Additionally, they must consider the performance objective and the target level. This formulation is able to identify several logistics business units. Some of them support the overall strategy of the firm, and others are drivers of strategic logistics.  The formulation is then developed to the choice of logistics business units and the solutions are adapted to reach the objectives. Logistics only runs efficiently if it’s internally linked with the other functions and if it’s integrated externally with the entire supply chain. Therefore, it’s important for logistics strategy to be integrated with other strategies while strategic logistics makes use of the levers presented by the other functions.

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