Provides a critique of the present state of the art of productivity and performance measurement and management in logistics. The nature of logistics makes normal measures of productivity, based on an output/input concept, not always appropriate. Indicator or proxy approaches can be more suitable and would relate the quality of the system to total cost, complementing conventional total productivity thinking. Highlights the main ingredients of strategic logistics performance. Develops analytical frameworks and models to aid management in planning and decision making, both operationally and strategically. Discusses the challenges of such integrated approaches, accentuating the effectiveness of the productivity philosophy in logistics. The competitive key battlegrounds include quality, productivity, speed and innovation, all linked to good business ethics. Compares Japanese and Western logistics management approaches to productivity and performance.
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