In addition tothe basis keys mentioned before, it is necessary to take into consideration thethe other linked actors in the chain, such as the supplier of the supplier andthe customer of the customer.
A series of connected upstream and downstreamtiers that one same goal which is delivering the good product to the goodcustomer at the good time in the good quality. Here comes the interaction withthe third party logistics that connects the performances of every tier. (Mentzer, 2000) To sum up, thecollaboration between all the actors is the key to a successful performance ina rude competitive market. Here comes the importance of the long termrelationship, the mutual sharing of the risks and the rewards that leads to atrust toward one same objective.
(Mentzer, 2000).Beside what hasbeen well mentioned previously by Mentzer, a good coordinated cooperation asone single entity, should be belt from the planning to the final delivery withhigh customer experience and less cost. To sum up thispart, a good supply chain strategy will also include a creative thinking thatwill perform logistics and production services while introducing the thirdparty logistics as a member of support. 1.1.
Logistics as part of the SCM Number are theacronyms that contributed in the creation of a confusion about the rightdefinition of the logistics, such as ” business logistics, channel management,logistics, distribution, supply chain management, material management…” (Coyle, Edward , Bardi and C, & Langley, Jr, 2003).However, in thisresearch, the definition considered is that the logistics are a number ofservices that manage with the physical flows from the point of origin till thefinal point of consumption. Moreover, through all the researches that have beendone, the definition of the logistics has not been confirmed. (Mentzer, 2000) According to the(CSCMP, 2009), the logistics canbe defined as follow “Logistics management is that part of supply chainmanagement that plans, implements, and controls the efficient, effectiveforward and reverses flow and storage of goods, services and relatedinformation between the point of origin and the point of consumption in orderto meet customers’ requirements.” Per the definitionabove, the logistics plays a major role in providing a certain level ofcustomer satisfaction, cost efficiency (as shown in the figure 4), through agood product and information flows management, thing that boosts thecompetitiveness of the companies. Figure 4 Basis oflogistics management (Wollaston, 1995)As part of thesupply chain management, the logistics has as focus the management of the goodsas well as the flow of services, from the starting point of the collecting theraw materials from the supplier to final delivery of the finished good.The logistics,as defined above, tackled not only the physical follow up of the goods throughthe whole process of making, storing and delivering but it also includes thereverse logistics (return flows). The logistics,as a full management, can be summarized in three main processes: