In Beside what has been well mentioned previously

In addition to
the basis keys mentioned before, it is necessary to take into consideration the
the other linked actors in the chain, such as the supplier of the supplier and
the customer of the customer. A series of connected upstream and downstream
tiers that one same goal which is delivering the good product to the good
customer at the good time in the good quality. Here comes the interaction with
the third party logistics that connects the performances of every tier. (Mentzer, 2000)

 

To sum up, the
collaboration between all the actors is the key to a successful performance in
a rude competitive market. Here comes the importance of the long term
relationship, the mutual sharing of the risks and the rewards that leads to a
trust toward one same objective. (Mentzer, 2000).

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Beside what has
been well mentioned previously by Mentzer, a good coordinated cooperation as
one single entity, should be belt from the planning to the final delivery with
high customer experience and less cost.

 

To sum up this
part, a good supply chain strategy will also include a creative thinking that
will perform logistics and production services while introducing the third
party logistics as a member of support.

 

1.1.  Logistics as part of the SCM

 

Number are the
acronyms that contributed in the creation of a confusion about the right
definition of the logistics, such as ” business logistics, channel management,
logistics, distribution, supply chain management, material management…” (Coyle, Edward , Bardi and C, & Langley, Jr,
2003).

However, in this
research, the definition considered is that the logistics are a number of
services that manage with the physical flows from the point of origin till the
final point of consumption. Moreover, through all the researches that have been
done, the definition of the logistics has not been confirmed. (Mentzer, 2000)

 

According to the
(CSCMP, 2009), the logistics can
be defined as follow “Logistics management is that part of supply chain
management that plans, implements, and controls the efficient, effective
forward and reverses flow and storage of goods, services and related
information between the point of origin and the point of consumption in order
to meet customers’ requirements.”

 

Per the definition
above, the logistics plays a major role in providing a certain level of
customer satisfaction, cost efficiency (as shown in the figure 4), through a
good product and information flows management, thing that boosts the
competitiveness of the companies.

 

Figure 4 Basis of
logistics management (Wollaston, 1995)

As part of the
supply chain management, the logistics has as focus the management of the goods
as well as the flow of services, from the starting point of the collecting the
raw materials from the supplier to final delivery of the finished good.

The logistics,
as defined above, tackled not only the physical follow up of the goods through
the whole process of making, storing and delivering but it also includes the
reverse logistics (return flows).

 

The logistics,
as a full management, can be summarized in three main processes: