We have two factories the one (A) supplies into the other (B) which then sells onto external customers. Factory A manufacture and supplies the parts to B and factory B does the assembly of these parts and sells the final product to the customer. Factory B also sells spares to customers of the assembled product as an after sales service. We have to decide if we set-up one logistics company for both or two, one for each. We have already decided to set-up two financial companies as these are currently two separate legal entities. Can anyone tell me what the pro's and con's of single vs multi logistics are?

Mulilogistcs would be more involved set up than single losgistics. In multi logistics you would need to define
1. How purchasing would happen?
2. How demand would be passed back and forth between companies?
3. Decide on sharing of master data like item master, customers, suppliers etc..

Some basic rules to decide if multi-logistcs is reqd or not are

1. Is the cost of an item same in the sites? If no multi logistics is must