ABSTRACT
Environmental monitoring is assessed on the importance of success on the six forces of threats of newcomers; competition between existing companies, product threats or replacement services, buyer bargaining power, supplier bargaining power, and relative strengths of other stakeholders. One of the activities that can affect the performance of competing companies in meeting the customers’ demands is the supply chain system (supply chain), in which part of this system is operational logistics. Logistics management has become part of its own business. This article discusses a model of agility logistics system based on the transformation of agility that offers chain performance improvements to logistics service providers. Model design use Structural Equation Models (SEM). Logistics performance can affect a company’s performance. In fact, each indicator can define a strong or low impact against other indicators. Agility logistic service variable attributes are environment (geographic, industrial structure, economic condition, and political features), strategic response, business practice (order cycles, inventory levels, profitability, volume of sales, and share price), innovation, competition (alliance, restructuring legalistically arrangement, and activity base costing), and technology (computer integrated, leanness, and flexibility).
