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Step 3 Measure logistics strategy driver

we examine demand profile and competitive profile as drivers of logistics strategy  [Pg.54]

For example, the higher the demand variability and imcertainty, the greater the need for buffers. Buffers can be in the form of spare capacity, inventory and order lead times. If we want to shorten the time the customer has to wait, then it is necessary to make speculatively - perhaps finishing off (customising) the product once the final order details are known. Finally, planning and controlling the flow of materials across the supply chain needs to be carried out centrally when in high demand variability and uncertainty conditions in order to coordinate the response of supply partners. In more stable demand conditions, it is possible to relax controls and allow more local flexibility. [Pg.54]


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