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Effectiveness can be thought of as "how well a company does what they say they're going to do;" efficiency focuses on how well (or poorly) company resources are used to achieve what a company promises they can do. There are a multitude of examples that would illustrate an effective, but not efficient, logistics system. For example, some companies routinely use premium and/or expedited transportation-which increase transportation costs-to meet customer delivery requirements. As such, the company could be considered effective (meeting delivery deadlines) but perhaps not efficient (increased transportation costs).

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Q: How can a particular logistics system be effective but not efficient?
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