For supply chain executives the first step is to clearly understand how the enterprise chooses to compete. This is important not only for the obvious reason of working together in the same direction, but also because supply chain has to enable the business strategy; it is not merely an operational department.

1.1 Explain the role of a market segmentation in creating strategic fit between organizational and supply chain strategies. (10)

1.2 With an aid of a diagram, discuss the basic movements of the logistics function. (15)