Naturally, most logistics performance measurement systems concentrated on monitoring resource consumption, for example costs, in order to promote efficiency in producing this standard output. Because logistics has grown in scope over the last decade, this approach is no longer valid. Specifically, three upper management realizations preclude the management of logistics as an expense center: logistics output is not standard, logistics adds significant value to customers down the supply chain (not just costs), and logistics service level is a critical component of customer satisfaction.