The relationship between logistics performance and business performance

Abstract

The performance logistics, both domestically and internationally, is a necessary precondition of national competitiveness Globalization and increased competitiveness turned performance  logistics into one of the key elements   of   trade.   Efficient  performance  logistics   facilitate   the production and  mobility   of   products, ensuring their safety and speed as well as reduction in cost when trading them among countries. Define logistics as part of the value chain which plans ,implements and   controls   the efficient flow of   goods,   services  and information  from source   to   consumer.   Ultimately,   the   importance  of  logistics   lies   in   the  ability   to efficiently   solve   transportation,   storage   and   packaging   issues,   increasing   the competitiveness of businesses and the country in general. Logistics encompasses a complex set of activities which require a collection of metrics to adequately measure performance. Ideally, the performance metrics used should be selected and maintained as a system, so they complement and support each other and provide the decision makers with a well balanced picture of the logistics process.

Measuring business performance is complex be-cause of the many objectives of business. Profit maximization remains one of the key objectives of  business, although the debate around this issue has not reached any final conclusions .Balance sheets and profit/loss accounts are the traditional and most popular means of measuring business performance. The inherent weakness of these measures, however, is that they fail to capture non-financial parameters such as good will and customer loyalty.

 To manage business process performance properly, it is necessary to monitor and control process implementation and execution throughout their lifecycle. Modern control models are highly complex, as they include several aspects of BPM.  the general conception of business performance  illustrates the complexity of the business performance management controlling system, and includes: process modeling and implementation, planning, monitoring, measuring and performance enhancement.

Purpose the paper’s aim is to theorize and assess a logistics performance model incorporating logistics performance as the focal construct with business performance as quality ,flexibility ,time ,cost and agility .

The results indicate that logistics performance is positively relationship by business performance and logistics performance . Neither business performance or logistics performance was found relationship between business performance and logistics performance . In this study the focus is limited to the relationship of logistics performance on organizational performance . 

Keywords

• Logistics performance

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