Transport Logistics



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02logisticse

1.2. Trends in logistics

The development of trade networks creates various needs for value-added logistics management

and gives rise to a large number of individual trends in logistics and supply chains.

1.2.1. Restructuring of logistical systems

Manufacturers are restructuring their logistics systems by concentrating production and inventory

capacity in fewer locations. Concentrating production capacity enables companies to maximise

economies of scale in production at the expense of making their logistics system more transport-

intensive and lengthening lead-time to customers.

Inventory centralisation, which has been a long-term trend, is now occurring on a larger

geographical scale. Companies have been able to enjoy the inventory cost savings, while minimising

additional transport costs by geographically separating stockholding and break-bulk operations, with

the former becoming more centralised while the latter remains decentralised.

Centralisation has also occurred in parcel and mail delivery systems by configuring their logistics

systems to “hub-satellite” systems in which all but local traffic passes through a centralised sorting

system.



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