chapter  11
30 Pages

Logistics and fulfilment strategies

From a strategic point of view a number of key decisions need to be taken by organizations when it comes to investment in logistics and fulfilment facilities. There are decisions relating to who should do it (the company or a third party), where to locate facilities in relation to markets and operations, and how to plan for increasing or reducing capacities. Issues relating to stores centralization and decentralization, types of building, layout, storage methods and handling equipment are also important considerations. This is a very important part of the organization’s strategic decision-making and an area that can make the difference between satisfied customers or disgruntled customers, affect profit and loss, responsiveness, flexibility, quality of service and capabilities to meet market demand effectively.