THE ROLE OF LOGISTICS IN PERFORMANCE MANAGEMENT

Apart from the proven and significant role of logistics in integrating marketing and management systems of a company, the position on the connection between the logistics and institutional ( top) level of a business strategy in contemporary literature and business practice is being acknowledged. The mentioned position implies the implementation of performance management. In this way, the earlier opinion and praxis of connecting logistics with operations and provisional functioning in the area concerning a degree of integrations of business functions are being surpassed. The relationship between performance management and logistics can be considered from two aspects: a) role of logistics in enhancement of performance management and b) roles of measuring and analysis in enhancing the logistics performances themselves. This paper explains the mentioned dual relationship through the prism of acquirement of key competences and competitive advantages of an organization through enhancement of certain performances. Key words: Performance Management, Logistics, Logistics Competencies.