Developing a Customer‐focused Logistics Strategy

Abstract

The increasing rate of change in technologies and markets and the search for competitive advantage, have led to a new focus on logistics strategy and management. In the dynamic, competitive environment of the 1990s, the successful companies will be those who recognize and take advantage of the leverage which can be gained by effective management of the supply chain, from supplier through end users. The starting point in developing a logistics strategy must be a thorough understanding of final customers′ requirements. Only then is it possible to determine the required performance of firms throughout the supply chain. Integrated information systems and strategic alliances/partnerships will play an important role in achieving the desired levels of service performance. As markets fragment, it will be critical to be able to identify the profitability of customers and products as well as how alternative logistics strategies affect the profitability of these segments of the business.