The economy of any country is greatly affected by the nature of the logistic. The cost of an organization can be minimized to a greate level by having effective and efficient logistic management. There are mainly two costs which are associated with the logistics which are transportation cost and inventory costs. More spending has to be done on the logistic operations by the organization which is looking to expand its operation. But if the overall percentage of expenses within the limit for the logistics and supply chain management, it will be a beneficial point for the company.
This will help the country to have a better economic environment in which company scan expand and operate in new locations facilitating better opportunities for the locals with employment opportunities and economic development.
In order to have long term success and financial sustainability, it is important to have the proper coordination between the efficient marketing strategy and effective supply chain operations. Comparatively, there has been a reduction in the logistic cost which has really helped the United States to expand its economic power all over the world.
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