Strategic logistics planning connects the supply chain
Strategic logistics planning covers all the steps in a supply chain: from planning and consulting to management and control to operational execution. It maintains the flow of goods, ensures that every link in the supply chain meets all required quality and efficiency standards and plays a role in adding value through logistics services.
Logistics services can no longer be viewed in isolation. The supply chain, which comprises not only all the individual logistics processes but also their integration, is dominated by a laser focus on supply chain management. That makes strategic logistics planning incredibly important for many organisations: manufacturers, retailers, wholesalers and service providers as well as institutions, hospitals and the public sector. Logistics planning is integrated into the overall strategy and the achievement of corporate goals.
What are the goals of logistics planning?
The primary purpose of strategic logistics planning is to ensure the right goods are supplied to the right customers in the right quantities, at the right locations and at the right times. This includes coordinating transport, cargo handling, storage and administrative management. Appropriate planning enables companies to track their available resources (human and physical capital) and allocate them sustainably for the long term. This includes preparing and protecting the current and future competitiveness of a company's logistics operations. Since logistics is a key success factor, it has to grow with the company – including investments in technology, materials, and human resources, for example. That highlights the need to forecast logistics costs, plan logistics processes and material flows and regularly review logistics strategy. All these steps are essential for a company's survival since competitors and market conditions change constantly.