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Logistics article

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Logistics article

Category: Essay

Subcategory: Logistics

Level: College

Pages: 2

Words: 550

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Logistics Article
“Performance management in supply chains: logistics service providers’ Perspective” is a 16-page journal article by Helena Forslund that presents the results of a study to evaluate how logistics service providers can actively improve logistics performance. Perhaps the greatest take on the article is the author’s perspective on logistics cost reduction and its effect on logistics performance as a variable. The article makes ten main observations. Firstly, logistics service providers (LSP) take care of all their customers’ logistics needs and act as intermediaries thereby allowing for specialization that improves efficiency and reduces redundancies. Customers can focus on production whereas LSPs will specialize on logistics thus reducing supply chain costs (Forslund 296-297). Secondly, they advance logistics performance by focusing on improving efficiency with regards to lead time and flexibility thus ensuring faster movement of goods within the supply chain and reducing the costs associated with warehousing and storage. It makes it easier to create a schedule that moves the required goods when needed and synchronizing activities with the production department so that production focuses on what needs to be moved (297). Thirdly, LSPs are specialized to take care of all their clients’ logistics needs thereby improving synergy and reducing duplications so that redundant logistics expenditures ar…

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