Key Logistics Trends 1/2

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http://www.denaliusa.com/pdfs/LogTrendsFinal.pdf

Denali has ide nine major trends that are changing the way logistics managers do their jobs. They are described below:

1. Globalization
Companies now compete for worldwide markets, no longer satisfied with local markets. As sou managers expand their search for the best value, they cast their nets in ever widening patterns and are rewarded with at sources in non-tra locations. Logistics managers must transport those materials to global manufacturing locations and then to worldwide customers, ach time, place and availability goals.

2. Supply Chain Integration
Denali res has shown that logistics management evolves through five stages, each characterized by unique management app. World class companies are integrated internally along horizontal pro, and externally with customers and suppliers. Integration is ac through application of technologies, such as ERP and physical integration of joint management processes such as the current collaborative initiatives.

3. Flexibility and Speed
The best supply chains are ultimately the most res. They are able to recover quickly from unexpected changes in demand or supply. Internal processes of leading companies are not only integrated, but are foc on their customers’ need for speed and flexibility in order fulfillment. These goals are achieved by streamlining internal processes, modifying po and integrating ordering and fulfillment processes with customers. e-Commerce trends are also having an im. Buyers are ordering in smaller quantities and expecting more rapid order turnaround. Logistics managers must provide for these new req. On the plus side, the closer the manufacturer is to the co, the less impact intermediaries have on inventory buildup and service failure.

4. Track and Trace Capabilities
Supply chain exceptions oc unexpectedly. Logistics managers must modify operations to correct them. This re constant monitoring and adjustment. Most organizations recognize they have insufficient visibility and cr safety stocks to protect against the unexpected. Now leading logistics suppliers are providing on-line information on shipment status, in real time. This permits companies equipped to react to the information to make ap changes in time to meet service objectives.

5. Collaborative Logistics
Leading companies are employing si collaborative approaches to assuring transportation and facility capacity is av to meet changing needs, and to further reduce their acq costs. In transportation this means realtime information sharing with carriers, to match upcoming requirements with the most effectively positioned equipment. It may also mean sharing of logistics res (equipment, facilities, systems and relationships) with other companies with complementary shipping characteristics. Companies with these relationships are able to further reduce costs by taking advantage of other companies shipping volumes.