There are at least three basic reasons why a firm would want to measure logistics
performance. Firms can reduce operating costs, use these measures to drive revenue
growth, and hence to enhance shareholder value.When we measure operating costs we
can identify whether, when and where to make operational changes to control expenses
and this also, and very importantly, points outs areas for improved asset management.
We can attract and retain valuable customers by improving the price value relationship
of products offered through cost reductions and service improvements. Finally, returns
to stockholder investments and the market value of the firm can be significantly
impacted by logistics performance improvements working through the processes that
lead to share price and dividend policy