Importance of logistics planning compared to other business planning types

¶ … logistics planning more important than any other type of business planning? Explain and be sure to make a good argument for your position.

Stressing the importance of logistics planning is not intended to discount the importance of other types of planning for an organization. However, without logistics planning, the company's other types of planning -- strategic planning and creative planning -- cannot be leveraged to their maximum potential. Logistics planning allows for cost savings, first and foremost, and other types of planning for the organization must take into consideration logistics given that if something is not logistically feasible in terms of transport or the supply chain, even attractive and effective plans cannot be brought to fruition.

Still, logistics planning is a relatively new concept. "Logistics as a business concept evolved in the 1950s with the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain. Today, the business sector uses this term to describe the efficient flow and storage of goods from point of origin to the point of consumption" (Logistics, 2012, Logistics Degree). Delays can result in unusable inventory, dissatisfied customers, and other unnecessary financial drains upon the business. Logistics management allows for a company to anticipate and deal with all of these issues. As businesses become even more dependent upon other countries, the field of logistics becomes more critical. Rather than viewing market research and customer management as separate from logistics, these elements are seen as being critically interrelated with elements such as requirements planning, ordering, and cultivating good relationships with suppliers. It is impossible to please customers without having the right goods at the right time.

Even smaller organizations cannot afford to ignore logistics, since they must optimize inventory management and warehouse organization. In fact, it could be argued that small business owners can even less afford to ignore these issues since losing perishable inventory is likely to be an even greater drain upon a smaller entity's cash reserves vs. A large one. All organizations must deal with returned merchandise.