Value chain activities are not isolated from one another. Rather, one value chain activity often affects the cost or performance of other ones. Linkages may exist between primary activities and also between primary and support activities. Sometimes, however, the firm may be able to reduce cost in one activity and consequently enjoy a cost reduction in another, such as when a design change simultaneously reduces manufacturing costs and improves reliability so that the service costs also are reduced. Through such improvements the firm has the potential to develop a competitive advantage. Such structure creates efficiency in the employee and high customer satisfaction in the buying experience

(Burn 3). By restructuring value chain activities as a means to prioritize importance, this opens the door to many business relationships, changes values and sets the stage for new propositions and recreates the business models.

In organizations the size of Sara Lee or Wal-Mart, logistics strategy requires much forethought and planning as there are many branches and divisions that are involved in the process. The goal is to reduce expenses and increase value to the organization by making the company more productive and efficient. This needs to be done as seamlessly as possible to continue brand loyalty and customer relations while maintaining market share and competitive advantage. Effective logistics happens not only by integrating technologies with leadership but also applying frameworks to optimize techniques to carry out objectives and goals. In order to have better Business to Business or B2B relationships, one must understand the connection. Robert Thierauf explains, "B2B is about connecting shared businesses and information processes of the extended trading networks, planning, shipping and logistics, inventory management and customer retention to name a few" (181). In other words, an optimized planning process can save millions dollars and allow a multination corporation to carry out its objective and gain market share. As discussed throughout and mentioned repeatedly in the literature, this means an organization must cultivate closer relationships with not only vendors by also consumers. This requires understanding their expectations and keeping a flexible open dialogue. This results in optimization of supply capabilities for profitability and customer service (Thierauf 182). Really it makes perfect sense with inventory not a burden

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Approximate Word count = 1190
Approximate Pages = 5 (250 words per page double spaced)