Strategic Management for Logistics

Abstract

The appreciation of the scope and importance of logistics and supply chain has led to a more scientific
approach. The effective supply chain management, as a component of strategic management, is an important aspect of
company’s functioning and is responsible for the optimizing of the whole system’s operation and the competitiveness
on the rapidly developing market. Strategy is about formulating a long-term plan for the supply chain that includes
solving of day-to-day issues and problems that inevitably occur. Thus, logistic strategy can be defined as the set of
guiding principles and driving forces that support the coordination of goals and plans and is applied through behavior
within and between partners across a network. There are four options of implications for the way in which the supply
chain strategy is approached in different organizations: evolve, classical, accommodate and systemic. The basic
argument for alignment strategy in the supply chain is the difference of logistics links that provide competitive
advantages. The logistics strategy has to be recognized and be a part of the whole business strategy of the company.
Logistics plays a significant role in the behavior between network partners across different market segments. There are
five principles of successful strategic positioning in logistics: a unique value proposition, a tailored supply chain,
identify the trade-offs in the supply chain, align logistics processes and continuity of the logistics processes. Moreover,
products with different logistics priorities, such as cost and time, require very different logistics strategy
implementation.
Finally, the importance of the integration of the logistic function into the business has been emphasized. Also, the
necessity of the connection between the logistics strategy framework and the company's corporate and comparative
strategies is noted. The logistics strategy must be evaluated regularly to find new opportunities for company's
development, because every business has different logistics needs and different ways to evaluate operational success.
The research explains various organizational aspects of the effective logistics strategy and the applicability and
relevance of the planning to distribution and supply chain systems. A number of real effective examples of company's
logistics strategy is provided. There is a number of implications for the way in which supply chain strategy is
approached in different organizations.