Comment on the following: Logistics is not confined to tactical decision about transportation and warehousing.

CS Executive · Financial and Strategic Management · PYQS · June 2019
Comment on the following: Logistics is not confined to tactical decision about transportation and warehousing.

Answer & Explanation:

Logistics is not confined to tactical decisions about transportation and warehousing. Longer-term decisions are needed to put in place the capabilities that ensure that logistics plays a full role in supporting a company's products in the market place. When a company creates a logistics strategy, it is defining the service levels at which its logistics organization is at its most cost-effective. Because supply chains are constantly changing and evolving, a company may develop a number of logistics strategies for specific product lines, specific countries, or specific customers. Apart from transportation and warehousing, logistics strategy deals with the following: Sources of Raw material and Components available Number of Manufacturing locations, and the products manufactured therein Nature of material handling equipments used Nature of distribution facilities Method for deploying inventory in the logistics network

Topics: Strategic Management

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