What’s the difference? Why do you need both? How do you make both a success?
So, what is the difference?
They’re two different things. A plan is not a strategy, and a strategy is not a plan.
A plan is how to get from point A to point B.
A strategy is knowing that point B might be a necessary point to reach on your way to where you want to go - point C.
And how does this relate to Logistics/Supply Chain?
You need a Logistics Pan to determine what you need to have where, how much of it, and when.
You need to define your Logistics Strategy so that it supports the goals of the business. If the goal is to be the lowest cost producer, then it will look different to what's needed if the goal of speed to market.
Do I need both?
Short answer: Yes.
You can have a plan without a strategy…
…but a strategy can’t deliver without a plan (…it’s like being all dressed up with nowhere to go).
How do they work together to deliver success?
Like anything, the key to strategy and plans working together is simplicity.
Too many consultants delivering too many pages of too much jargon is not going to work. You’ll finish with a logistics strategy that is too complex to read, understand and implement. Apart from a volume of folders, all you’ll have to show for it is a large consultancy bill.
The logistics strategy is the source of all logistics plans. A clear logistics strategy delivers clear logistics plans. Plans need to link with the strategy.
How do you link logistics plans with the logistics strategy?
Linkage is via consideration of four elements of any logistics operation.
Successful Logistics Outcomes
= (logistics plans = logistics strategy) + solid logistics systems.
It’s as simple as that.
How well aligned are your logistics plans to your logistics strategy?
How solid are your logistics systems?
Do you have the best logistics systems to drive successful logistics outcomes?