The original notion of logistics involved three operations that each add value to merchandise — adding place value by moving items; adding time value by storing them until they’re needed; and adding order value by arranging them in more desirable patterns and quantities (consolidation, break-bulk, sequencing, etc.).

But currently, in addition to concentrating on the operations above, some firms are now achieving quantum leaps in service, sales and cost through process coordination involving the sharing of data and knowledge between their internal functions, as well as between the other players in their supply chain and beyond.

By integrating processes along their product supply chain, and by forming partnerships with key vendors and customers, they are eliminating functions without sufficient added-value, reducing overall risk through innovative contracting, and sharpening their focus on the final customer.  All of which leads to significant, bottom-line results.

Such innovative supply chain management has raised the logistics professional from a cost-oriented we need to have it but we don’t really like it position to a strategic executive responsibility critical to corporate success.