Logistic ; is that part of supply chain process that plans, implements and controls the efficient, effective flow

and storage of goods, service and related information from the point of origin to the point of consumption in order to meet the customers requirement ; defined by Council of Logistic Management. As to make all this to occur, transportation, distribution, warehousing, purchasing, and order management organisation must work together. Thus there are the sub plans for Logistic that helps it to work. However, this requires a logistic strategy where it will be aided by the application of various keys of logistic and the decisionmaking techniques. By defining the service level at which the companys logistic organisation is at the most effective and at the better cost, the company manages to create a logistic strategy. A company may opt to create a number of logistic strategies for specific product lines, specifics countries or to specific customers. This is because the supply chain is constantly changing and evolving from time to time. As this supply chain constantly varies and thus it will affect any logistic organisation. Companies should develop and implement a formal logistic strategy in order to adapt to the flexibility of the supply chains. By doing such, a company will be able to identify the impact of imminent changes and make organizational or functional changes to ensure that the service levels will not be reduced. Companies should develop and implement the formal logistic strategy as to adapt to the constantly changing and flexible supply chains. As to that, they need to have organizational and functional changes to ensure that their service levels are not reduced or being compromised. There are four distinct levels of the logistic organization that will be taken into account when a company starts to develop a logistic strategy. The four distinct levels are strategic, structural, functional and implementation.

Strategic is when the companys objective and the strategic supply chain decision is examined and it creates the importance that the logistics strategy should review how the logistic organisation contributes to those high level objectives. The structural level if logistic organisation is when the logistic strategy examines the structural issues of the logistic organisation. This comprises things such as the optimum number of warehouses and distribution centres or what products should be produced at a manufacturing plant. Functional is where any of the strategy reviewing on how each separate function in the logistic organisation is to achieve functional excellence. Implementation is the key in developing a successful logistic in across the organisation. Development and configuration of an information system, introduction of new policies and procedures as well as the development of a change in the management plan are parts of the implementation plan in the logistic organisation. It is important to examine all the component of the operation while examining the four levels of logistics organisation. This is important as to ascertain whether any potential cost benefits can be achieved. There are certain components that are the same but some components differ according each company. First is the transportation component. It is important to value whether the current transportation helps the strategy levels or not. Transportation system is the most important economic activity in the logistic business. The transportation helps the goods and products to be movable and provides timely and regional efficacy in promoting value-added under the least cost principle. It works as the system of goods movement by planning the functions accordingly in order to minimize cost and to maximize service to the customers. Thus, transportation is the base of economy nad the efficiency in business logistics and it expands

other functions of logistic system. In addition, a good transport system in a logistic activity brings benefits not only to the service quality but also to company competiveness.