Conquer the CLTD Challenge 2026 – Navigate Your Path to Logistics Success!

In determining whether to include or omit an entire echelon from a logistics network, a fundamental consideration is whether that echelon adds value to the overall business model. This means that any component of the logistics network should contribute positively to the mission and objectives of the organization. If an echelon does not enhance the value proposition—such as improving service levels, reducing cycle times, or providing better inventory management—it may not be justified.

While cost-effectiveness, freight charges, and customer satisfaction are important factors in logistics decision-making, they are more specific to particular scenarios rather than being the overarching principle. A logistics network must align with the strategic goals of the business, and therefore, value addition is paramount in driving decisions related to the structure and functionality of the logistics system. If an echelon does not provide significant value, it could be considered for removal, regardless of its impact on costs, freight charges, or perceived customer satisfaction in isolation.