Impact Of Logistics Management On Organisational Performance: A Case Study Of Mljkwano Group Of Companies.

The study and practice of logistics emerged in the I 960s and 1970s. Logistics costs were high. On a national level. it was estimated that logistics cost in the U.S. accounted for 15 percent of the gross national product (Heskett et al.. 1973 ). Similarly. physical distribution costs of other nations were found lo be high as well. For example. in the United Kingdom. they ,,ere 16 percent of sales (Murphy. 1972). in Japan they were 26.5 percent of sales (Kobayashi. I 973 ). in Austrnlia they were 14.1 percent of sales (Stephenson. I 975). and as of I 99 I in China !he) were 24 percenl of GDP (Wang. 2006). On an individual l1nn level. they could be as high as J2 percent of sales (Lalonde and Zinszer. 1976). The recognition of these high costs led one writer to declare physical distribution(Logistics) as one of "the most sadly neglected. mos! promising nreas of American business" (Drucker. 1962). With markeling and produclion being rela1i, cl, malure ureas of analysis. logistics were the next obvious areas for managerial at1en1ion. Physical distribution with its outbound orientation was first to emerge. since it represents about two thirds of logistics costs and it was considered a component of the marketing mix (product. place or physical distribution. promotion. and price) of essential ele111cnts. Business logistics. with ils broader scope thal includes inbound movement. was soon lo follow. II is useful lo look al what was envisioned by early proponents of the areas to sec the fit with currenl ,·iews and lo gi,c so111e idea of future directions.