Logistics "and" Strategy "are interrelated terms in a business organization.

Delimiting each

concept separately while establishing links between them will give multiple advantages to any

company. The first thing is to be clear that logistics is a strategic tool to enhance competitiveness

and, consequently, the production system of a country.

The RLEC organization (Reverse Logistics Executives Council) defines logistics activity as "the

process of planning, implementing and efficiently control the flow of raw materials, work in

progress, finished goods and related information with them, from the point of origin to the point

of consumption, with the purpose of satisfying the customer's requirements ". logistics and has a

transverse comp leja structure. It is necessary to develop a logistical strategy to start this process.

The company will be in charge of managing, subcontracting or outsourcing the whole set of

activities that encompass logistics. This includes the organization and management of all

activities aimed at obtaining, transferring and storing materials and products from their

acquisition to suppliers, to their subsequent distribution to customers and consumers (including

the purchasing process, inventory management, transportation, customer service, storage or

processing of goods).

WHAT SHOULD A COMPANY DO TO ACHIEVE A GOOD LOGISTICAL STRATEGY?

The answer is simple: start by designing a Logistics Plan that includes raw materials and

suppliers, production and storage centers, information channels, distribution and sales networks.

The important thing is not only to produce a good and competitive costs, but to get through the

logistics to make available to the customer the products or services they demand, at the right
time and in the right place, in ideal conditions and at an optimum cost , in order to meet the

requirements of the supply chain in the most efficient and efficient way possible.

"Supply chain" is another concept that has gained strength in recent years. The supply chain

covers the entire life cycle of a product or service from the time it is conceived until it is

consumed. And it is related to logistics and to the logistics strategy of companies.

Within the supply chain of a company or a group of companies distinguish three basic areas of

logistics:

1. The procurement process: deals with material management between suppliers and

the company.

2. The production process: manages the set of productive operations of the

manufacturing centers.

3. The distribution process: includes product management to customers and

consumers.

Optimum management of the supply chain involves both internal and external activities of the

company and is linked to infrastructures (warehouses, means of transport ...), processes

(information systems and their treatment as well as management methods) and management (the

human resources and the agents involved in the logistics of the company).

In this sense, we distinguish three types of logistics strategies, depending on how many

intermediaries intervene in the logistics process:

 Selective logistics strategy: it is chosen which and how many intermediaries are part of

the distribution. That choice depends on the characteristics of the product or service, the

competition and the target audience.

  Exclusive logistics strategy: This strategy limits the number of points of sale only to our

product and to no other.

 Intensive logistics strategy: its objective is to cover as many distribution channels as

possible in order to reach the target audience. It is ideal for the consumption of massive

products

The term "supply chain" was first used by consultant Keith Oliver in 1982. In the mid-1990s

publications on this topic began and it has been in the 21st century that companies have begun to

adopt new organizational forms root of this term. The economic crisis we face has led companies

- especially SMEs - to develop the supply chain in greater depth by reducing economic costs,

either internally or by partnering with other companies (known as horizontal distribution). The

importance of logistics strategy is also observed in newly created companies . It is

recommended logistics study allows further deepening in the processes described.

HOW IS THE LOGISTICS STRATEGY IN SPAIN?

The following table shows a SWOT table with this reality taking as reference the one elaborated

by the specialized platform Logistop:

WEAKNESSES - Lack of planning THREATS - Absorption of logistics processes by

estratégica.- shortage of skilled and trained large non - Spanish organizations due to poor

human resources management level Logistics.- development of operators locales.- Delayed

Reluctance to innovation and the incorporation Spanish industrial landscape regarding areas of

of technological developments by the business improvement industriales.- Excessive regulation:

sector español.- Lack of collaborative culture lack of harmonization in the legislative and
between different agentes.- Typology of the regulatory, autonomous, national and European

industrial structure of the logistics sector level.

(predominance of SMEs). - Insufficient

development of specialized logistics operators.

- High dependence on road transport. - Lack of

global vision to manage existing

infrastructures.

STRENGTHS - Business awareness of the OPPORTUNITIES - market globalization and

importance of logistics as a differentiating trade, contributing to the emergence of new

factor competitividad.- stable situation of business opportunities for the industry española.-

sustainable economic growth in Spain, which increase in the practice of reverse logistics, both

allows industrial development and new environmental aspects and returns products.-

inversiones.- Existence of logistical know-how Progressive development of activities of R + D +

globally to develop logistics management in i that strengthens the collaboration between the

Spain from a more reliable point of departure.- science and technology system with the business

Optimal geographical position of Spain as an fabric.- Impulse at public and private level and

entry to Europe, connection with Africa and consolidation of logistics infrastructures.-

Lationamerica, as well as a strategic position Possibility of turning Spain into the Logistics

of its ports for trade with Asia.- Progressive Center of Southern Europe .- Growth of the

and correct adaptation to the environmental logistics market: due to the new global economic

regulations and of trazabilidad.- Increased paradigm: globalization, offshoring, shortening

tourism associated with the movement of the life cycle of products, greater customer

people and with it the movement of the demand, etc.

materials that these people need to meet their

demands.- High capacity of life in Spain,

making it an attractive country for the location

of business activities.

Today, organizations are now exposed to rapid changes due to the high risks generated by

economic, political, social and technological variables. At this point, the role of a logistics

strategy is vital, since it generates added value to the supply chain, guarantees a response from

customers and allows the company to achieve its objectives. To go deeper into this aspect we

recommend a course of business logistics . Logistics is an integrated process in the company,

associated with the good management and administration of the different flows (capital, goods

and services, people) and whose development impacts on the performance of organizations and

favors their competitiveness.

Likewise, in the last years many organizations have opted to develop a horizontal logistics

structure of distribution, creating with their clients and suppliers Logistic Networks whose

objective is to generate a synergy between two or more companies of the same or several sectors.

In this way, organizations gain greater knowledge and skills while achieving greater bargaining

power and logistics structure, minimizing logistics costs.