CA IPCC, Formation Of Functional Strategy, Module 8
Bacha log, Let’s see Logistics Strategy now. Management of Logistics is a process which
integrates the flow of supplies into, through and out of an organisation to achieve a level of
service which ensures that the right materials are available at the right place, at the right
time, at the right quality and at the right cost. So everything right. Organisations try to
keep the cost of transporting materials as low as possible. SCM that is Supply Chain
Management helps in logistics and enables a company to have constant contract with its
distribution team like trucks, train, etc. Development and use of a formal logistics strategy
is very important given the changes that affect logistics operations. For a business
organisation effective logistics strategy will involve raising and finding solutions to the
following questions:
Which sources of raw materials are available?
How many manufacturing locations are there?
What products are made at each manufacturing locations?
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