SUMMARY
Abstract: This report highlights the importance of logistics to an economy. It describes the typical operations of supply, production and distribution processes, and emphasizes the possibility of outsourcing a number of these operations to local enterprises with the appropriate experience to perform them. Also, it suggests that Governments in developing countries and countries in transition should contribute to the "re-engineering" of their international trade-oriented and productive sectors so that they can become part of global production schemes. Chapter I presents the basic elements of logistics and explains how logistics contributes to the creation of value in a national economy. It also describes the challenge faced by developing countries in the field of logistics. Chapter II outlines the types of added-value logistics services that are currently needed by the industrial and commercial sectors of a country. It stresses that most of these services can be outsourced, creating opportunities for potential local services providers. Chapter III suggests possible actions that Governments could initiate to foster the development of local logistics services