1.10 Conclusion

Logistics is a key source of customer value and a vital driver of global prosperity. Great logistics can transform countries, help companies compete, and enrich the lives of individual consumers. However, making the movement, storage, and processing decisions to build an effective logistics system is hard to do. Tradeoffs between service and costs are everywhere. By taking a holistic systems perspective and implementing lean practices such as eliminating the eight wastes and pursuing the 5S methodology, you can mitigate the classic tradeoffs and build an outstanding logistics capability. Companies like Amazon, Rue La La, and Toyota understand how to improve service without increasing costs—even as business conditions change. They use this capability to create customer loyalty and improve competitiveness.