What is the primary challenge of logistics?

The primary challenge is to maintain cost effectiveness and responsiveness at the same time.

The prime challenge for Logistics should be cost effectiveness without compromising on On-time deliveries.

COST EFFECTIVENESS , TIMELY DELIVERIES AND ONTIME, QUANTITATIVE DELIVERIES USING KPI'S (KEY PERFORMANCE INDICATORS)

Transportation and material handling >>>>>>>>>>>..

• Capacity forecasts
• In-network inventory management
• Alignment of manufacturing and logistics
• Systems integration
• Information sharing

1) The competitive marketplace demands efficiency controlling transportation, inventory, and other logistics related costs.

2) Order fulfillment meets and perhaps exceeds customer expectations.

3) Cost and service trade offs must be considered when evaluating customer service levels and the associated total cost of logistics, but both goals efficiency and effectiveness are important to an organization in today’s competitive environment