Logistics and supply chain management create value for customers, suppliers, and shareholders by emphasizing time and place, while managing costs. As customer service expectations rise due to advancements like the internet, companies must navigate increasingly complex supply lines and develop comprehensive strategies for global markets. A product's value is largely contingent on its availability, leading to higher demands for quick responses and customization from consumers.

1. Importance of
logistics and supply
chain

2.  Logistics centers around creating value: value for
customers and suppliers of the company, and
shareholder value of the company.
 The value in logistics is mainly expressed in terms of
time and place.

3. Cost is important
 Over the years, we have conducted several studies to
determine the cost of logistics for the economy in
general and businesses in particular. There are widely
differing estimates of cost levels.

4. Expectations of logistics
customer service are increasing
 Internet, operating procedures and continuous time
replenishment inventories have helped customers
expect great speed in the processing of your
requirements and delivery of their orders, and there is a
high degree of product availability.

5. Supply lines and distribution are
growing in more complex
 The trend is towards an integrated world economy.
Companies are looking for or have developed
comprehensive strategies, designing their products for
a global market by producing where the raw material,
parts and labor may be found at low cost (eg, the Ford
Focus car), or simply produce sold locally and
internationally.

6. Logistics and supply chain are
important in the strategy
 Companies spend a lot of time looking for ways to
differentiate their products those of its competitors.

7. Logistics and supply chain add value
important to the customer
 A product or service is of little value if it is not available to
customers in the time and place in which they wish to consume.
When a company incurs the cost of moving the product to the
consumer or to have available inventory of timely manner, created
a customer value did not have before.

8. Customers increasingly want a quick
response and customized
 Retailers fast food, ATMs, sharing and overnight email
Internet have made consumers hope that the products
and services may be available in ever shorter times.

9. Service Industry
 The service sector in industrialized countries is large
and growing. United States, more than 70% of all jobs
are in what the federal government classified as the
services sector.