The relationship between logistics performance and business performance

Year 2022, Volume: 10 Issue: 2, 173 - 193, 26.12.2022

Balgasm Ali Almasratı

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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