Macro-environment

There are thousands of products for consumers to choose from, not only in South Africa but worldwide.  Many businesses do not only sell their products in their own country but to different companies and customers all over the world.

For example, any South African living in England can buy “Mrs. Balls Chutney” from their local supermarket.

Therefore the distribution of goods from point-of-origin to point-of-consumption has an impact on our country’s Gross National Product (GNP).

This means that as an important part of GNP, logistics can affect our economy’s interest rates and energy costs.  The cost of energy and interest rates affects all of us.

If we have a good economy we will pay less for goods and have more job opportunities in our country.

Micro (company) environment

Logistics forms part of the marketing concept of a company.  The marketing concept says that a company can only be successful if we find out what the customer wants and deliver it to them better than any other of our competitors.  This means a better product at a better price.

Therefore logistics forms an important part of any company's marketing concept. Logistics allows us to give the customer what they want when they want it and where they want it.

Logistics plays an important part in satisfying the customer’s needs and making a profit for the company.

A profitable company will be able to offer their workers better working conditions, wages, increases, bonuses, and training.

Thus logistics can be seen as an “asset” to the company. It will set us apart from our competitors and will allow our company to be profitable.