Supply chain viewpoints logistics viewpoint

Some view supply chain design as integral to their strategies for competing. For them, competing successfully centers not only on products, but also on the operations that make up the extended product as described in Chapter 1. These operations deliver the physical and extended products to customers hands. With this viewpoint, supplier relations, logistics, and information systems support customer satisfaction and fall within the definition of SCM. This, in turn, leads to increased market share and profit. Costs, while important, are secondary with this viewpoint. Efforts to reduce cost must also support strategy. 

The logistics view often addresses the outbound downstream side in much the same way as the procurement viewpoint worked with the inbound side. Supply chain improvement focuses on cost reduction aimed at incremental improvements in profit. Typical activities include modeling or automating warehouses, distribution centers, and transportation networks to reduce cost. 

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