4. The Size of the Organization Spend and Financial Significance

The large number of physical moves associated with any purchasing or supply chain activity has placed greater attention on the role and components of logistics. For our purposes, we are defining logistics as the activities and processes associated with procurement, operations, and distribution. According to the Council of Supply Chain Management Professionals (CSCMP), “Logistics management is that part of supply chain management that plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers’ requirements.”1 The CSCMP definition ...

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