Defee and Stank (2005) studied how strategic management principles and processes
impacted supply chain structural development and performance. The authors found an
iterative relationship within the framework of strategy, structure and performance
processes which suggested that supply chain management strategies needed to be
aligned with their partners. Heskett (1977) emphasized that logistics considerations can
play an important role in achieving strategic objectives, such as increased market share
or increased profits. In traditional corporate structures, successful logistics strategy
should result in increased effectiveness of business operations. Among the many
functional areas affected, customer service is recognized as an area of primary concern
for many organizations. Therefore, effective logistics can result in enhanced customer
service operation.