How to Effectively Manage the Cost and the Time of Logistics Quick Response

Quick Response has become an important strategy to increase competitiveness in logistics. Variables affecting logistics quick response capability have been widely studied from the perspectives of assessment on logistics performance or supply chain performance. This paper analyzes the key variables to assess logistics quick response capability in China. It analyzes empirical data collected from 50 logistics experts and professionals to identify the importance sequence of the variables. The results indicate that, in the Chinese context, the three most important variables affecting logistics quick response capability are customer service, time management and logistics cost. It's critically important to manage the latter two variables in order to achieve improved customer service. A methodology of non-linear cost-profit balance is proposed for effective logistics quick response implementation.