5.3 Logistics activities and the customer order decoupling point
The design of a logistics system depends on the performance objectives of that system related
to the markets it wants to deliver to. It is a well known principle in management that the
nature of demand for a product should be carefully considered before a supply chain strategy
is designed. When product cost is the major issue, the supply chain should be efficient; when
quality and speed are more important for customers, the supply chain should be responsive and
assured. Nowadays, supply chains are expected to be extremely flexible, responsive and at a low
cost, in order to satisfy constantly changing consumer demand. Some SCM authors2 argue that
the organization’s or supply chains’s performance is influenced by four drivers: