is essential, as all organisations, even those offering
intangible services, rely on the movement of materials
• is expensive, with costs often forming a surprisingly
high proportion of turnover
• directly affects profits and other measures of
organisational performance
• has strategic importance with decisions affecting
performance over the long term
• forms links with suppliers, developing mutually
beneficial, long-term trading relationships
• forms links with customers, contributing to customer
satisfaction and added value